4 trends challenging today's HR leaders

AI has triggered questions about what the future will look like for different industries and how it will impact the way teams function. HR is no exception: 82% of HR professionals are using AI in their daily work.¹

As AI begins to support different HR responsibilities and routine workflows, such as screening résumés or drafting job descriptions, it can free up time and energy for HR teams to focus on human, interpersonal tasks such as relationship-building, culture development and employee engagement.

While an increasing number of employers are implementing or considering return-to-work mandates, the flexible, work-from-home models that were adopted during the pandemic are not going away; rather, they are evolving. In fact, 39% of Americans prefer a hybrid work schedule while 32% prefer a fully remote work schedule,² but both models come with their challenges: limited face-to-face rapport-building, difficulties of integrating new hires, unequal access to opportunities due to proximity bias and unclear productivity implications.

The effects of “coffee-badging” also remain a concern, with 58% of hybrid workers only showing up to the office for brief windows of time in order to meet attendance requirements before leaving for the day.³ Additionally, senior workers are often able to skirt in-person attendance rules in a way that junior employees are not, which can cause tension and resentment to foment.⁴ To address some of the concerns around hybrid work, it’s important that executive and HR teams listen to employees and understand all the implications of these different models rather than making sweeping decisions that put HR teams on the defense and risk recruitment and retention strategies.

UnitedHealthcare data shows that cost trends are up 10.9% year-over-year for behavioral health claims, placing mental health among the top 5 costliest conditions — highlighting the need for employers to better understand available resources as they seek to manage costs.⁵ In fact, in 2024, 1 in 4 chief human resource officers said employee well-being ranked among their organization's top priorities.⁶ This will likely remain the case in 2026, as last year 63% of U.S. workers reported feeling worried about the mental health of themselves or their family members.⁷ Despite this widespread concern, more than half of employees have never tried to use their employer's Employee Assistance Program (EAP) to deal with mental health concerns, often due to stigma or uncertainty around confidentiality.⁷

Simply offering mental health benefits is no longer enough. Today’s organizations must consider how those benefits are communicated to employees and integrated into everyday work life. HR teams can be critical to these efforts. As mental health becomes a core workforce issue, employers that take a proactive, preventive approach may be better positioned to support employee well-being and productivity over the long term.

As the Silent Generation has largely entered retirement, today’s workforce primarily spans 4 commonly defined generations — Baby Boomers, Generation X, Millennials and Generation Z⁸ — all of which have different health care needs and preferences based on demographic factors including age, finances and family structure. For instance, Baby Boomers continue to have the highest per-member cost, 1.6x higher than Gen Xers and 2.5x higher than Millennials.⁵ And the costs for all groups are trending upwards, with double-digit year-over-year cost increases — due in part to rising rates of admissions and surgeries.⁵ Gen Zers, on the other hand, aren’t using the health system in the most appropriate or cost-effective way.⁵

Because of this diversity, a one-size-fits-all approach to health benefits is ineffective. Employers that succeed in supporting a multigenerational workforce design benefits around different life stages and health care priorities. For brokers and consultants, this means helping HR teams and clients think beyond uniform plans and focus on tailored strategies, including targeted communications, digital tools that simplify navigation and care models relevant for different age groups. It’s also important to move beyond physical health toward a holistic model that addresses mental health, emotional well-being and overall whole-person health.