SHRM highlights growing role of benefits in engagement and retention

• Key Insight: Learn how integrating AI with human-centered benefits strengthens workforce stability and engagement.
• Expert Quote: Leaders must blend technology with human connection to sustain organizational health — Jim Link, SHRM.
• Supporting Data: 92% of CHROs expect greater AI integration in workforce operations.
• Source: Bullets generated by AI with editorial review

As benefit managers head into 2026, new technologies should work with tried-and-true engagement strategies — and not against their business's greatest asset. 

While technology is advancing quickly, leadership and employee experience will ultimately determine workforce stability, according to SHRM's newly released 2026 State of the Workplace and 2026 CHRO Priorities and Perspectives reports. In fact, 91% of workers who believe their organization effectively addresses workplace needs report job satisfaction, compared to just 44% among those who view their organization as ineffective. 

While artificial intelligence is becoming more embedded in day-to-day operations, benefit leaders will need to view AI as an enabler, rather than a replacement for people-centric support. SHRM's data found that 92% of CHROs anticipate greater AI integration in workforce operations, making AI a key component of business strategy. 

"Business leaders recognize change is accelerating across every workplace," Jim Link, CHRO of SHRM, said in a release. "Our research shows investing in leadership and employee experience remains essential for organizational health. By blending technology with the irreplaceable value of human connection, leaders create work environments ready to adapt, grow, and thrive, regardless of what the future brings."  

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Striking the right balance with technology

Benefit managers will need to use their people skills, paired with benefits, to respond to increasing pressure on workers. Employee engagement is now the top issue workers want HR to prioritize in 2026, and benefits are one of the most visible signals employees receive about how much their employer actually cares. In fact, 51% of employees are at least somewhat likely to leave their employer within the next year if their organization is ineffective at addressing their needs, according to the data. 

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But benefit managers and CHROs are also feeling pressure from every angle — controlling expenses while still investing in people. For benefit managers, the path forward isn't about doing more of everything. It's about doing the right things better: Prioritizing benefits that reinforce leadership, trust, and employee experience while delivering measurable value.

And leaders are willing to invest in their own skills to meet employees' needs: 46% cite leadership and manager development as a top priority for 2026, according to the data. Finding the right balance, and using technology to facilitate these shifts, will be the key to success in the new year, Link said. 

"Organizations are taking steps now to strengthen culture and empower teams to position themselves to meet tomorrow's challenges with confidence," Link said. "Success comes from reimagining how we lead, support, and develop our people."