A recent annual report by Paycom Software, Inc., a leading cloud-based human capital management (HCM) software provider, indicates that improvements in HR technology will be the primary focus for HR professionals moving into 2026, with a significant demand for new HCM software and increased AI integration. The survey, conducted by PSB Insights, gathered insights from over 1,000 HR professionals.
The report found that 43% of HR professionals plan to prioritize HR technology upgrades and improvements in the coming year. Additionally, 4 out of 5 HR professionals anticipate their organization will purchase new HCM software within the next 12 months. Outdated and repetitive HR workflows are a major contributing factor to this trend, with nearly one-third of respondents identifying the time spent on repetitive tasks as a significant influence on their organization’s priorities for 2026.
There is also an increased demand for artificial intelligence, as 15% of HR professionals ranked the expanded use of AI in HR functions as their top priority for 2026. Shane Hadlock, chief client and technology officer at Paycom, commented, “The need for automated, impactful HR technology has never been greater. As we head into 2026, organizations are recognizing the need to upgrade from outdated systems and invest in solutions that streamline repetitive work.”
Challenges with inefficient workflows and unreliable data also affected HR professionals in 2025, influencing 2026 goals for 28% of respondents. These issues often stemmed from a lack of centralized HR tools or platforms. A study conducted by Forrester Consulting earlier this year revealed that HR and payroll leaders reported their organizations utilize an average of 6.17 providers to manage the employee life cycle, with 77% storing data across multiple HCM databases. Consequently, 80% of respondents stated that disparate or duplicate employee data negatively impacted their ability to generate accurate workforce reports.
This landscape may lead businesses to favor single-database solutions for HR technology upgrades in 2026. Over 91% of respondents in Forrester’s study expressed interest in a single HCM software built on one database when asked, and 84% believed this would positively impact their business goals, with improved data accuracy cited as the top expected benefit. Paycom notes it is the only truly single database in the HCM industry, facilitating a seamless flow of data and communication essential for HR and payroll automation. One respondent told PSB Insights, “We should be integrating new software that makes manual tasks more automated. We need to reduce manual tasks in the HR department so that the process is more seamless, and we can better track changes in needs.”
Beyond HR technology upgrades and AI, PSB Insights identified other key organizational priorities for 2026: enabling employee development and upskilling/reskilling, enhancing employee experience, engagement and well-being (including culture initiatives), and attracting and retaining top talent.
Paycom commissioned PSB Insights in July 2025 to survey 1,000 HR professional decision-makers across various industries and company sizes in the U.
S. These individuals possess decision-making authority over their company’s HR and payroll platform. The Forrester Consulting study, titled “Single-Database HCM Solutions Drive Cross-Business Success,” was commissioned by Paycom in May 2025.
Paycom Software, Inc. (NYSE: PAYC) provides automated, command-driven HR and payroll technology designed to simplify business operations and employee experiences. Serving businesses of all sizes in the U.
S. and internationally for over 25 years, Paycom’s employee-first technology utilizes AI and full-solution automation within a single database to streamline processes and enhance efficiencies. Its AI engine, IWant™, offers instant and accurate access to employee data without extensive navigation.
