80% of employers are increasing benefits budgets in 2026

Hey HR Pros!

As organizations plan for 2026, benefits are emerging as a clear investment priority, with 80% of employers increasing their budgets despite ongoing cost pressures and operational complexity. For HR leaders, this reflects a strategic shift toward treating benefits as a lever for retention, engagement, and workforce resilience.

The real focus now is not simply how much is being invested, but whether those dollars are aligned to the evolving needs of employees navigating burnout, caregiving responsibilities, and major life events.

Upcoming In This Issue:

• 📊 80% of employers are increasing benefits budgets in 2026 but alignment remains the real challenge

• 🤖 22% of employees would consider quitting over mandated AI use

• 📊 77% of large employers say early career hiring has stayed steady or increased despite AI fears

• 🎙️ Featured Podcast: Emotional Intelligence for HR (with Jen Shirkani)

Is It Time to Rethink Your Payroll Software?

Payroll is supposed to be predictable. If it’s stressful every cycle, something’s off! 😵 

In 2026, payroll for most organizations may look like multiple states, global hires, contractors, shifting tax rules, benefits deductions, integrations with HR and finance, and leadership asking for cleaner reporting yesterday. 😫 

If your current system feels patched together, overly manual, or dependent on one person who “just knows how it works,” that’s a risk.

SSR’s HR Software Advisor can help you rethink your payroll software. You’ll talk to someone who knows the payroll software market inside out and can point you toward alternative options that match your current structure, growth plans, and compliance needs.

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• Only female manager sues DuPont alleging biased discipline and firing

📊 80% of employers are increasing benefits budgets in 2026 but alignment remains the real challenge

According to the 2026 Workplace Benefits Report, 80% of employers plan to increase benefits budgets this year, yet 60% admit their offerings are only somewhat or not aligned with employee needs .

For HR leaders, the pressure is twofold: demonstrate measurable ROI while redesigning benefits to meet real world complexity.

Key insights

• 📈 Budget growth is intentional, not transformational 80% of employers are increasing benefits spend, but more than half expect only slight growth

• ⚖️ The alignment gap is widening at leadership levels 60% of employers and 52% of employees see misalignment, with executives 1.5x more likely to perceive full alignment

• 🧠 Mental health, flexibility, and financial stability dominate priorities Paid family leave 39%, financial wellness 34%, and mental health 34% rank highest among employees

• 💼 Support during life events drives retention outcomes 81% say expanded support increases likelihood to stay, while 82% say it proves employer care

Read the full report here

🤖 22% of employees would consider quitting over mandated AI use

Recent findings show that mandated AI tools can reduce perceived autonomy, add layers of bureaucracy, and erode the sense of meaning employees derive from their work.

At a time when US engagement has fallen to a 10 year low and job search activity is at a decade high, search queries for “quitting my job” have risen 10% year over year, alongside new searches tied to being forced to use AI at work.

Key insights

• 📉 Resistance is underestimated at the top Only 4% of employers cite employee resistance as a barrier, yet 22% of workers would consider leaving if forced to use AI they do not support

• 🧠 Autonomy and meaning are at risk Employees report AI reduces creativity, adds bureaucracy, and creates fear of being replaced by the very systems they build

• 👀 Surveillance concerns are escalating Workers describe screen monitoring and performance tracking as “AI Big Brother,” raising trust and privacy implications

• 🛠️ HR must lead structured AI governance Clear AI policies, onboarding education, acknowledgment protocols, and anonymous feedback channels can mitigate disengagement and retention risk

Read the full article here:
https://www.hcamag.com/us/specialization/leadership/is-your-ai-strategy-driving-employees-away/566825

Get 1 SHRM/HRCI Credit: HR’s Role in Leadership Development

This session focuses on how HR can move beyond generic leadership promotion programs and take real ownership of building leaders who are equipped for today’s and tomorrow’s workplaces.

HR LOLs

📊 77% of large employers say early career hiring has stayed steady or increased despite AI fears

Looking ahead to 2026, half of employers anticipate stable hiring and 22% expect increases, signaling that the real shift may be role redesign rather than role elimination.

For HR leaders, the strategic question is how to evolve early career models to integrate AI while protecting long term leadership pipelines.

Key insights

• 📈 Hiring stability challenges the narrative 43% of large employers report steady early career hiring, while 34% report increases over the past two years

• 💰 Economics outweigh automation concerns Among organizations reducing hiring, cost pressures and economic uncertainty rank above AI as primary drivers

• 🎯 The bar for entry talent is rising Employers are increasing skill expectations and emphasizing immediate productivity for early career hires

• 🔮 2026 outlook signals cautious optimism 50% expect steady hiring and 22% anticipate growth, reflecting redesign rather than disappearance of early roles

Read the full article here:
https://hrexecutive.com/myth-vs-fact-is-ai-really-killing-entry-level-jobs/

🎙️ Featured Podcast: Emotional Intelligence for HR (with Jen Shirkani)