Three problems HR wants to fix in 2026: New report

Tech upgrades at top of mind to reduce manual, repetitive HR work

Three problems HR wants to fix in 2026: New report

Upgrades to HR technology have emerged as the top priority of human resources professionals for 2026 as they seek to streamline repetitive work, according to a new report from Paycom Software.

The report, conducted by PSB Insights, surveyed 1,250 HR professionals to determine trends and their priorities for 2026.

The top priority for HR professionals is the upgrade of the technology they use, as cited by 43% of the respondents. In fact, four in five expect their organisation to purchase new HCM software over the next 12 months.

"As HR moves toward a more strategic and technological role, those in the field expect to refine their own expertise and actively seek ways to enhance their organisations' software," the report read.

Another priority of HR leaders is the increased incorporation of artificial intelligence in their role.

"Doing so would allow HR to turn to more important responsibilities, such as employee development, engagement, retention, and more," the report read.

Addressing HR's biggest woes

According to the report, these priorities come as HR leaders seek to alleviate some of their department's biggest obstacles, such as:

  • Manual and repetitive tasks
  • Workforce frustration spurred by a lack of seamless functionality
  • The need to constantly determine the effect of new legislation on a workforce

"The need for automated, impactful HR technology has never been greater," said Shane Hadlock, chief client and technology officer at Paycom, in a statement

"As we head into 2026, organisations are recognising the need to upgrade from outdated systems and invest in solutions that streamline repetitive work."

Warning against multi-systems

But the report also warned against using multiple systems in the HR function, as it noted that overly complicated software and tools that do not seamlessly communicate with one another can also hold the department back.

Findings from a Forrester Consulting report cited by Paycom revealed that HR and payroll leaders use an average of 6.17 providers to manage the employee life cycle.

More than three in four of the respondents (77%) even said they store data across multiple HCM databases, making disparate or duplicate employee data a challenge in the creation of accurate workforce reports.

"The answer lies in single-database HR software that streamlines processes while ensuring the AI that supports it only pulls employee data from a truly single source of truth," the Paycom report read.

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