The major challenges of the Human Resources department

The last few years have seen a flurry of innovations in the business world, and this trend is unlikely to slow down in the near future.

Digital transformation also affects the Human Resources Department, and remains a real challenge, particularly when it comes to optimizing HR processes. But in 2026, the HR function will no longer be content to simply accompany the transformation: it will be the driver of it. According to the WTW 2025 Barometer, 84% of HR managers make business transformation their top priority.

The central role of Human Resources

HR is responsible for supporting and preparing employees for the changes that will affect them. To do this, they must take into account the specific environment of the company in order to choose the most appropriate tools.

Human resources management is no longer confined to career management or the recruitment process: it must enable employees to be valued, while seeking to improve the employer brand, relying on data and complying with increasingly complex regulations.

By 2026, almost 90% of HR managers will be members of their company’s governing body (WTW 2025 Barometer). The HR function is no longer a support center: it is expected to act as a strategic co-pilot, capable of anticipating the impact of technological transformations, steering regulatory issues and maintaining employee commitment in an economic context under strain.

Develop a digital culture within the company

Contrary to popular belief, it’s not up to the IT department to create a dynamic around digital tools in a company. That’s the job of the human resources manager. Not everyone can master the use of new technologies, so it’s only natural to use all the training levers available in-house. The Human Resources department will therefore take on the responsibility of managing change, relying on communication and team support.

In 2026, 94% of HR departments will be using AI on a personal basis, but 70% of organizations do not yet have a formalized governance framework to oversee these uses (HRD Barometer 2026, Sopra Steria Next / ABV Group / RH&M, primary source).

Only 30% have defined an ethics charter or appointed an AI referent. Structuring this governance – ethical charter, steering committee, team training – is becoming a priority for HR departments.

The 6 major challenges facing the Human Resources Department in 2026

1. Control costs without sacrificing commitment

In 2026, 9 out of 10 HR managers place controlling social costs at the top of their priorities, compared with half a year earlier (HR Manager Barometer 2026). This shift, described as “the end of post-Covid euphoria”, is reshaping the entire HR roadmap. The real challenge is to maintain employee commitment without relying on traditional financial levers: this is where the quality of management, the employee experience and the meaning given to work become decisive differentiation levers.

2. Developing the employer brand and attracting talent

Recruiting new competent employees is essential for a company. This is the role of human resources. To achieve this, we need to work on the employer brand, the company’s true identity.

Faced with a shortage of talent, 76% of recruiters are struggling to find qualified profiles despite an influx of applications (Focus RH, January 2026). HR departments are innovating: predictive analysis, recruitment via new channels, transforming temporary work into permanent contracts. In this sense, theemployee-centric approach is a powerful lever for differentiation in the talent market.

3. Enhancing the employee experience and building loyalty

The employee experience has become a “must” that must be well defined and implemented. This employee-centered approach seeks to enhance the value of the human being by placing him or her at the heart of human actions. To build employee loyalty, HR will need to think about a real employee experience from the very beginning of the relationship with a candidate, from onboarding to offboarding.

4. Coping with new regulations

New regulatory constraints are adding to the challenges facing HR departments. In 2026, three deadlines will shape the regulatory agenda:

• The European directive on salary transparency (2023/970): transposition into French law expected in 2026, with the obligation to display salary ranges in job advertisements and to publish gender gaps.

• The CSRD directive: mandatory non-financial reporting for large companies, with a direct impact on HR and CSR policies

• The Rixain law: compulsory index of women’s representation in management bodies

Together, these three areas represent the number one regulatory priority for 59% of HRDs (WTW 2025 Barometer, primary source).

5. Stemming managerial fatigue

This is one of the most alarming findings of the HRD Barometer 2026 (primary source): 40% of HR departments report an increase in manager fatigue and demotivation.

Middle management is one of the most critical professions (48%), neck-and-neck with technical and industrial profiles (49%).

These same managers are at the heart of the transformation strategy, creating a structural tension that HR departments need to address as a priority. The managerial innovation approach is one of the most effective ways of addressing this tension.

6. Developing a digital culture and managing the AI transition

With the rise of digital technology and the development of new, ever more effective tools, one of the major challenges facing the HR department will be to drive and support change within the company.

Taking advantage of new, ever more efficient technologies will make it possible toautomate a large number of HR processes, in particular with an HRIS tool.

These are the main challenges facing the human resources department in the months and years to come. The objective is to face them in order to improve the global performance of the company.

Conclusion: the HRD, architect of human transformation

In 2026, the Human Resources Department is torn between transformation ambitions and a shortage of resources. It must simultaneously control costs, pilot AI, support exhausted managers, comply with new regulations and maintain employee commitment. Meeting these challenges requires a clear HR strategy, appropriate tools and rigorous change support at all levels of the organization.

These challenges directly echo the major issues facing HR departments today, as detailed in our dedicated article.

Are these challenges relevant to your current situation? SQORUS HR consultants support HR departments in their transformation: HR strategy, HRIS deployment, change management, data governance. Contact us for an initial discussion.

FAQ – Human Resources challenges