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As organisations head into 2026, Chief People Officers (CPOs) are navigating unprecedented workforce disruption. To understand what is most front of mind for senior HR leaders, Savannah Group gathered input from 25 Chief People Officers across sectors.
This Savannah CPO Pulse survey highlights consistent themes: talent shortages, AI-driven workforce transformation, leadership succession risks, and the evolving future of employment. At the same time, HR leaders must manage cost pressures and support organisational growth.
Below are the key insights and actions HR leaders can take entering 2026:
1. Talent & skills shortages: The biggest HR challenge in 2026
Across all conversations, securing the right talent emerged as the top challenge for CPOs. Organisations are struggling to attract and retain both digital and leadership skills, while offshoring and AI are reshaping junior roles and the entry-level talent pipeline.
“Talent is the biggest thing that keeps me awake right now! Not having the people in the business to deliver the plan.”
The talent agenda is now about building sustainable workforce capability, addressing the skills gap, and strengthening overall talent management strategy.
Actions to stay ahead
- Conduct a skills gap audit across critical roles
- Invest in reskilling programs and internal mobility initiatives
- Strengthen partnerships with education providers to influence the future talent pipeline
2. AI in HR: Transforming workforce planning and recruitment
AI is reshaping hiring, performance management, and organisational design. Many HR leaders are concerned about being reactive rather than proactive, risking competitive disadvantage.
“HR needs to be on the front foot of technology and AI, shaping the agenda, not receiving the decisions.”
To stay competitive, organisations need to integrate HR technology, AI in HR, and digital HR solutions into workforce planning and recruitment strategy.
Actions to stay ahead
- Pilot AI tools in recruitment and workforce planning with clear governance
- Upskill leaders on AI capabilities and limitations
- Integrate technology strategy into broader people and workforce planning
3. Intergenerational workforce risk
AI and automation are accelerating the disappearance of traditional entry-level roles, while education systems struggle to keep pace with changing skill demands. HR leaders are increasingly concerned about how future generations will access meaningful employment — and what this means for long-term talent pipelines, social mobility, and organisational sustainability.
“The ladder into work is changing fast. If junior roles disappear, how do we develop future leaders — and what happens to the next generation coming through?”
Actions to stay ahead
- Map long-term workforce needs to emerging generational capability
- Reimagine early-career roles to combine human capability with AI augmentation
- Build alternative entry routes through apprenticeships, internships and skills-based hiring
- Partner with education providers to shape future-ready curricula
- Invest in structured development for junior talent to accelerate readiness
4. Leadership & succession: Critical for business continuity
Succession planning is increasingly complex. Executive roles are broader, more capability-focused, and harder to fill. Building bench strength is essential to derisk the organisation and accelerate growth.
Effective leadership succession planning and a strong executive pipeline are now critical components of talent management strategy.
Actions to stay ahead
- Map future leadership needs to business strategy
- Develop cross-functional leadership programs
- Review succession plans regularly at Board and executive level
5. Future of work: Rethinking employment models
Flexible, agile, and technology-enabled workforces are no longer optional. HR leaders are redefining roles, culture, and workforce strategy to integrate human and digital labour while preparing for evolving skills needs.
Forward-looking organisations are focusing on future of work planning, HR transformation, and flexible workforce strategies to remain competitive.
Actions to stay ahead
- Redesign roles and workforce models for agility and collaboration
- Invest in culture as a business lever
- Partner with learning providers to accelerate future skills development
6. Cost pressures: Balancing transformation and talent investment
HR leaders face relentless pressure to balance budget constraints with the need to invest in talent and transformation initiatives. Prioritising initiatives that deliver high ROI is key to sustainable growth.
Strategic HR requires workforce investment planning, cost management in HR, and a clear focus on HR transformation ROI.
Actions to stay ahead
- Prioritise initiatives with highest ROI
- Use workforce analytics to identify efficiencies without reducing capability
- Build agile workforce planning cycles to adapt to market changes
To discuss your talent and workforce challenges please contact Ali Palmer, Katie Chevis or Rachel Clark.
