UKG urges employers to tackle AI readiness, talent gaps and low trust in the workplace
A global labour crunch, low trust, and uneven AI readiness are setting the tone for 2026 – and they go straight to the heart of retention, workforce costs, and how employers design jobs and schedules.
UKG’s latest “megatrends” package those pressures into three themes: AI readiness, talent agility, and employee enablement.
Not all of it matters equally for a benefits and pensions audience, so here’s the stripped-down version.
UKG says employee engagement remains “dangerously low” worldwide and links this to billions in costs for organizations. It points to low trust and lack of empowerment as key reasons.
Its research shows two in five employees do not have decision-making authority, even for straightforward issues like solving customer problems or improving processes.
Instead of layering on more engagement programs, UKG urges leaders to focus on enablement: trust-based cultures, real autonomy, access to tools, and more personalized, holistic well-being support.
Drawing on decades of Great Place To Work data, UKG says high‑trust cultures generate 42 percent more discretionary effort in both good and recessionary times.
For employees, the company frames this as taking an active role: identifying needed tools and resources, flagging barriers to performance, and bringing concrete solutions to management so they act less as problem identifiers and more as problem solvers.
UKG describes a worsening talent shortage driven by shifting demographics, declining labour participation, and widening skills gaps.
It calls this a workforce “talent crisis” that traditional hiring cannot fix alone.
Losing experienced staff hits harder when qualified replacements are scarce, and UKG research finds that work schedules and limited career growth are the top reasons frontline employees quit.
To respond, UKG argues for an “adaptive talent ecosystem” that blends full‑time, part‑time, gig, and AI‑enabled roles.
It emphasizes upskilling existing employees and redeploying them where the business needs them most, while giving workers more control over where, when, and how much they work.
The company positions flexible talent models as a way to address both recruiting and retention pain points.
On the employee side, UKG says workers will need adaptable skills that can be applied across different roles and departments as workforce models become more fluid.
UKG’s Great Place to Work unit reports that roughly two‑thirds of organizations are culturally unprepared for AI transformation, and its own research finds only 53 percent of frontline employees think their employer is preparing them for an AI‑driven workplace.
To close that gap, UKG stresses trust and cross‑functional collaboration, particularly between IT, HR, and Communications. It highlights frontline managers as key advocates who need education and support to champion AI initiatives.
The company underlines that “technology alone doesn't drive adoption. People do.”
For employees, UKG suggests building targeted AI competencies that streamline core workflows and align with their organization’s or industry’s needs, reinforcing both their value and a growth mindset.
UKG plans to explore these three themes – AI, the talent ecosystem, and employee enablement – at its complimentary HR and Payroll e‑Symposium, “Understand Your Workforce,” on January 28, 2026, where it will discuss how employers and managers can respond to these shifting workplace dynamics.
