Core Insights - The ADP 2026 HR Trends Guide highlights the shift towards an AI-driven workplace, emphasizing a skills-based approach to align talent with organizational goals [1][4][10] - The report stresses the importance of HR-IT collaboration, responsible AI governance, and transparency in shaping the future of work [1][5][6] Skills-Based Job Design - Organizations are assessing their skills inventory and strategically redesigning roles to align talent with business needs as AI transforms the workplace [4] - 84% of large organizations believe AI can streamline processes without replacing employees, with 76% of midsized and 73% of small organizations sharing this view [4] AI Integration and Employee Engagement - AI is reframed as a collaborative partner, empowering employees to innovate and engage more fully with their work [4][6] - Successful AI adoption requires intentional training, hands-on experimentation, and leadership that models continual learning [4] Compliance and Regulatory Landscape - Pay transparency requirements are expanding, particularly in the EU, necessitating clearer information on pay, advancement, and gender gaps by 2026 [6] - Organizations face multijurisdictional compliance challenges, requiring a consistent approach to navigate varying local, state, and federal laws [6] Agentic AI in HR Operations - Agentic AI is emerging as a core capability in Human Capital Management (HCM), streamlining HR operations through automation and proactive insights [6] - 20% of small businesses, 50% of midsized, and two-thirds of large companies report having a governance process for generative AI [6] HR-IT Collaboration - The reliance between HR and IT is increasing as AI reshapes the workplace, necessitating close collaboration for effective and responsible work delivery [6][7] - IT's expertise in technology management is becoming crucial for HR leaders, while HR provides insights on the human impact of these tools [7]