A new Mercer survey of C-suite leaders, HR leaders and investors identifies five forces blocking “exponential” progress in the human-machine era.
- C-Suite and HR Are Misaligned on Performance Drivers
- Only 8% of executives believe HR is strategically embedded in decision-making, while 81% of investors say embedding HR in strategic decisions is essential.
- HR's 2026 priorities (AI work redesign, people analytics, integrated workforce management) diverge sharply from C-suite ROI drivers.
Suggested HR Actions: Audit the 2026 roadmap against C-suite priorities and present an alignment plan within 60 days. Establish a joint steering group with KPIs tied to business outcomes, not HR activity metrics.
- Intentional Work Redesign Is Needed
- Just 32% of C-suite leaders believe their workforce can effectively combine human and machine capabilities.
Suggested HR Actions: Map tasks to identify what AI can substitute, augment, or transform. Measure and communicate gains to build momentum for work redesign.
- Skill Shortages Are Constraining Growth
- Talent scarcity is executives' #1 workforce concern for 2026.
- Half the C-suite believes they are not investing enough to close expected skills gaps.
- Many employees would trade a 10% pay raise for AI/digital upskilling.
Suggested HR Actions: Build an internal talent marketplace for skills-based lateral moves and short-term projects. Embed learning in the flow of work and create sunrise skills pathways for roles at risk of disruption.
- Near-Term AI Headcount Shifts
- 11–20% of the workforce is expected to be redeployed or reskilled within two years.
- 63% of employees believe leaders underestimate the psychological impact of AI.
Suggested HR Actions: Build a proactive transition framework that communicates role changes before they happen. Integrate ongoing sentiment loops into every transformation plan.
- Talent Intelligence Is a Differentiator — and HR Is Falling Behind
- 55% of executives say their organization underutilizes the workforce intelligence it already has.
- High-growth companies are twice as likely to treat talent insights as critical as financial data.
SHR Actions: Develop predictive models for burnout, flight risk, and skills adjacencies to move from dashboards to decisions. Build a single workforce data backbone connecting skills, performance, and engagement to business outcomes.
