What are the greatest challenges that HR and benefits professionals face this year?

We asked our consultants. They identified four issues as being most pressing in 2026:

Managing the steep rise in healthcare costs, including GLP-1s

Group health plan sponsors face relentless pressure to manage rising healthcare costs being driven in large part by pharmacy costs.

The 2026 Segal Health Plan Cost Trend Survey found medical plan cost trends are projected to increase by a median of 9 percent, the highest annual projection in more than a decade. The projected rate of increase for prescription drugs is higher — 11.0 percent — with specialty drug trend projected to be 11.9 percent.

Expensive new drug therapies and expanded indications of existing products, such as GLP-1s being used for weight loss and diabetes treatment, have dramatically increased utilization and continue to be a top cost driver.

Strategies for managing healthcare costs

We have found that effective healthcare cost management requires a balanced, three-pronged approach that focuses on managing plan design and networks, vendor relationships and population health — with data analytics at the core of each strategy.

To help you manage healthcare costs while supporting your people, our experts recommend strategies like data analytics to identify a plan’s cost drivers, smarter network optimization and management (including centers of excellence), robust clinical programs and controls, case management for people who have conditions associated with high-cost claims, PBM contracting (including a new pricing model) and transparent communication.

Find out how we helped clients save millions of dollars on their pharmacy benefits:

• PBM Audit Recovers $4.6M 
• Higher Ed Coalition Saves $21M with New PBM 
• Repricing Helps Health Plan Slash Out‑of‑Network Costs by 90%

Integrating AI into the workplace for greater efficiency and a better benefits experience

Organizations need to consider the role of AI in the workplace. AI adoption and workplace transformation will accelerate through incremental integration into everyday work.

AI is quietly revolutionizing HR and benefits — streamlining operations, personalizing support and enabling smarter decision-making.

AI-powered tools will usher in bigger changes to how we work, but organizations must address readiness gaps and upskilling.

As organizations face mounting pressure to adopt AI, leaders have a unique opportunity to transform that urgency into a strategic advantage by guiding their people through this pivotal shift.

People-focused strategies for transforming your workplace and benefits with AI

Our consultants guide organizations through AI integration into HR and benefits operations. We’ll help you build strategies for safe, effective and scalable AI adoption for greater efficiency and delivery of personalized experiences for your people.

Our approach is “Human First. AI Forward.”

We have a five-part framework for how organizations can evolve with AI. Thoughtful implementation of AI integration is key. Organizations that embed AI into daily tasks and workflows can see measurable improvement in efficiency and quality.

We offer a wide range of AI consulting services to assist organizations no matter where they are with AI integration, from exploring options to evolving how AI is transforming the workplace.

Our AI solutions include AI Advisor, a suite of three services to provide ongoing, expert guidance, and AI Assistant, a powerful employee benefits engagement tool for intranets, websites and apps. Learn about our AI consulting services and solutions.

Organizational and benefits implications of a multigenerational workplace

Today’s multigenerational workplace requires rethinking workplace and benefits strategy.

While members of all generations in the workplace experience stress, which is contributing to rising demand for mental health services, it’s likely that the financial and personal triggers that need to be addressed differ. Personalization in benefits will become central to attracting, engaging and retaining different generations.

Additionally, given record retirements, succession strategies are critically important.

Strategies for supporting your people’s well-being

We’ll help you support all aspects of your people’s well-being, from mental health benefits to financial wellness. We offer holistic solutions tailored to your organization. Our strategies consider your people’s varied and evolving needs, which may include paying off student loans, family building, balancing work and caregiving responsibilities, career development and retirement readiness.

We’ll also help you with succession planning and developing the next generation of your organization’s leaders.

Navigating economic uncertainty and mitigating risks for the workplace and benefits

From an investment perspective, market performance and geopolitical-driven volatility remain concerns.

Enterprise risk encompasses the loss of intellectual capital through retirements and falling behind on AI integration into the workplace.

Economic pressures are affecting your people as well as your organization. Their finances are strained.

In 2026, risk management will become a focus for sponsors of private and public retirement plans.

Strategies for navigating economic uncertainty and mitigating risk

Conduct formal investment policy reviews; consider rebalancing to align with risk tolerance and market conditions; evaluate alternative investments under evolving regulations and liquidity requirements.

Mitigate enterprise risk by revisiting current processes, workforce planning, just-in-time learning, benefits programs and organizational policies to adapt to people’s evolving expectations and embrace new technologies confidently.

To counter financial uncertainty, help your people improve their financial literacy. To boost their morale, consider initiatives to recognize their contributions and foster their sense of belonging. Examples include spot awards and peer-nominated programs.

To prepare for uncertainty, retirement plan sponsors should engage with advisors on plan maturity, consider innovative funding strategies, coordinate management of assets and liabilities and evaluate plan design changes.

To stay on top of these issues, stay in touch.

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