The People Challenges Businesses Will Face in 2026 – And Why Managers Will Make or Break Success

As organisations plan for 2026, the message from UK HR publications and global research bodies is remarkably consistent: people risk is business risk.

Reports from the CIPD, Gartner, McKinsey, Deloitte, and UK trade press including Personnel Today and HR Magazine all point to the same convergence of pressures. Economic uncertainty, continued skills shortages, rapid AI adoption, and rising employee expectations are colliding to create a far more complex people landscape than many organisations are prepared for.

At the centre of this challenge sits one group that research repeatedly identifies as the biggest lever for success, and the biggest point of failure: managers.

Managers: The Critical Factor in 2026

The CIPD and Gallup have long highlighted that around 70% of employee engagement is driven by managers, yet Gartner research continues to show that many managers feel overwhelmed, under-skilled, and under-supported.

As organisations head into 2026, this gap is becoming increasingly dangerous.

UK HR trade press consistently highlights the following people challenges as top priorities for business leaders:

  • Sustaining engagement and retention in an environment of ongoing change and uncertainty

  • Preventing burnout and protecting wellbeing as workloads intensify and roles continue to evolve

  • Redesigning jobs and skills as AI automates tasks faster than capability can be rebuilt

  • Proving the ROI of people investment, as boards demand clearer links between HR activity and business outcomes

  • Managing transformation without losing trust, capability, or top performers

McKinsey has repeatedly warned that organisations underestimate the “execution gap” during change. Most transformation fails not because the strategy is wrong, but because people disengage along the way. In nearly every case, that failure shows up first at manager level.

Why Traditional Engagement Models Are Falling Short

Despite this evidence, many organisations still rely on annual engagement surveys, delayed reporting cycles, and generic leadership training programmes. Gartner and Deloitte research both note that these approaches are increasingly misaligned with how work actually happens.

By the time survey results are analysed, the moment to intervene has often passed.

What the research suggests organisations need instead is:

  • Continuous insight rather than periodic snapshots

  • Actionable signals rather than static dashboards

  • Support for managers at the moment of need, not months later

In short, the future of people management requires tools that enable action, not just measurement.

How Loopin Addresses the 2026 People Challenge

Loopin was designed in direct response to these emerging challenges.

It is an innovative employee engagement and digital coaching platform that helps organisations understand how their people are really feeling in real time, and equips managers with the support they need to respond effectively.

Through regular, lightweight check-ins, Loopin captures real-time sentiment data across morale, wellbeing, workload, progress, and performance. This data is surfaced directly to managers through an intuitive, easy-to-use dashboard, highlighting priorities and early warning signs without overwhelming them.

Crucially, Loopin goes beyond insight.

Drawing on behavioural science and coaching principles increasingly recommended by bodies such as the CIPD and Harvard Business Review, Loopin provides in-the-moment coaching that guides managers on what to do next. This helps translate insight into practical action, supporting managers to address issues early and lead with greater confidence.

A Practical Tool for Organisations Under Pressure

As businesses move through 2026, many will be navigating multiple pressures at once: transformation programmes, AI-driven change, cost control, and rising expectations around wellbeing and inclusion.

Loopin is particularly effective in these environments because it:

  • Identifies engagement and wellbeing risks early, before they escalate

  • Supports managers during periods of uncertainty and change

  • Enables data-informed decisions at team and organisational level

  • Embeds better leadership habits, rather than relying on one-off interventions

By strengthening day-to-day management capability, Loopin helps organisations reduce regrettable attrition, improve performance, and protect productivity, outcomes that research consistently links to strong managerial effectiveness.

Looking Ahead

The evidence from HR research and trade press is clear. The organisations that succeed in 2026 will not be those with the most data, but those that turn insight into timely action.

They will recognise that investing in managers is not a “nice to have”, but a core business strategy.

As Gartner notes, the future of work will reward organisations that support managers continuously, not episodically, and that treat leadership capability as a competitive advantage.

Because in a world of constant change, better managers really do change everything.

Loopin helps organisations make that change stick. Book a call.

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Your People Are Your Greatest Asset - But Only If Your Managers Are Truly Supported