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CIPD research exposes gap between workforce priorities and HR capability

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Research by the CIPD suggests that HR teams are struggling to keep up with growing demands to improve business performance and plan for future workforce needs.

The HR Pulse Report 2026, supported by Talking Talent, found that 91 per cent of HR professionals see improving organisational performance as a priority, while 78 per cent highlighted the importance of workforce planning.

However, only 61 per cent of HR professionals working in medium and large organisations said their teams actively identify the skills and leadership capabilities their employers will need over the next one to two years.

The findings, based on a survey of 883 UK people professionals, reveal a gap between the strategic role organisations expect HR to fulfil and the capabilities available within people functions.

Specialist expertise remains limited, with only 14 per cent of respondents reporting specialism in workforce planning, 13 per cent in talent management and 12 per cent in organisational development and design.

The CIPD said these capabilities are increasingly important as employers navigate economic uncertainty, restructuring, technological change and the growing influence of artificial intelligence.

The research also found that 91 per cent of respondents prioritise supporting line managers with people management, while 82 per cent identify developing leadership capability as important.

These findings suggest that the effectiveness of organisational health and wellbeing policies and interventions often depends on management capability, workforce planning and the ability to identify emerging people-related risks.

As employers place greater emphasis on employee wellbeing, retention and sustainable performance, HR teams are increasingly expected to connect workforce health with wider business priorities.

The CIPD’s findings suggest that organisations may need to invest more deliberately in the capabilities of their people functions if they are to move from reactive workforce management towards longer-term planning.

Measurement is another area of concern. Although respondents generally believe their people teams are viewed positively by the wider business, only 61 per cent said their function has clear measures of success.

Without effective measurement, organisations may struggle to demonstrate how investment in leadership, employee experience and workforce wellbeing contributes to organisational outcomes.

The report also identifies a relationship between investment and HR capability. Among medium and large organisations, 74 per cent of respondents whose HR budgets had increased said their function identifies future skills needs, compared with 51 per cent where budgets had decreased.

The findings do not establish that higher investment directly causes better workforce planning, but they reinforce the importance of providing people teams with appropriate resources.

The CIPD is calling on employers to strengthen specialist HR expertise, develop management capability and establish clearer measures of organisational impact.

As expectations of HR continue to expand, the challenge for employers will be ensuring their people functions have the skills, resources and influence to deliver sustainable improvements for both employees and organisations.

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