UKG has released three workforce predictions for 2026 that highlight gaps in AI readiness, talent management challenges and declining employee autonomy across global organizations.
The workforce operating platform company says two-thirds of organizations are culturally unprepared for AI transformation, according to research conducted with Great Place to Work. Only 53 per cent of frontline employees believe their employer is preparing them for an AI-driven workplace, according to UKG research.
“With the workplace changing faster than ever, leaders can no longer afford to read and react,” said Rachel Barger, president of go-to-market at UKG. “The 2026 UKG Megatrends show how embracing change can be a real advantage.”
AI adoption requires cross-functional collaboration
UKG says companies must prioritize trust-building and unite IT, HR and communications teams to drive AI adoption. The company says frontline managers need education and must become advocates for AI initiatives.
The research found employees should develop AI competencies that align with their organization’s needs as digital collaboration becomes standard practice.
Talent shortage drives need for flexible workforce models
The talent shortage is accelerating due to shifting demographics, declining labor participation and widening skills gaps, according to UKG. The company’s research shows work schedules and limited career growth are the top reasons frontline employees quit.
UKG recommends building talent ecosystems that blend full-time, part-time, gig and AI-enabled roles. The company says organizations should upskill existing employees and give them more control over where, when and how much they work.
Low employee autonomy undermines engagement efforts
Two in five employees lack decision-making authority for basic tasks such as solving customer problems or improving processes, according to UKG research. The company says low trust and lack of empowerment are the root causes of persistently low employee engagement worldwide.
UKG recommends leaders shift focus from engagement programs to strategies that provide autonomy, access to tools and personalized well-being support. According to Great Place to Work research, high-trust cultures generate 42 per cent more discretionary effort in both good and recessionary times.
UKG will hold a session on these workplace trends at its HR and Payroll e-Symposium on Jan. 28, 2026.
