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Despite mounting concerns about the global economy, employees continue to feel confident about their own careers, workplaces and ability to adapt to change, according to SHRM‘s latest Global Employee Monitor.
The Q2 2026 report, based on responses from 5,747 workers across 26 countries, paints a picture of a workforce that remains resilient even as economic confidence softens. While workers are increasingly concerned about issues such as the cost of living and broader economic conditions, they continue to express confidence in their own employers, career prospects and skills.
Pay Still Leads Employment Decisions
Compensation continues to dominate employees’ decisions about where they work.
SHRM found that pay remains the most important factor influencing whether workers choose to join, stay with or leave an organisation. Benefits, job security, career advancement opportunities and work-life balance also continue to rank among employees’ top priorities.
The findings suggest that while organisations continue to invest in culture and employee experience, competitive compensation remains fundamental to attracting and retaining talent.
Career Growth Drives Engagement
While pay influences employment decisions, the research highlights that different factors drive engagement.
Employees reported that meaningful work, opportunities for career advancement and ongoing skills development are the strongest contributors to engagement. In contrast, retention is more closely linked to compensation, job security, workplace culture and confidence in leadership.
More than six in ten respondents said they were more likely to remain with their current employer than look elsewhere, suggesting that employee retention sentiment has remained relatively stable despite continued economic uncertainty.
AI Adoption Continues to Grow
Artificial intelligence is becoming an increasingly normal part of working life.
Generative AI remains the most widely used form of AI in the workplace, while use of predictive AI, automation, optimisation and agentic AI all increased modestly compared with the first quarter of 2026.
Interestingly, growing AI adoption has not been accompanied by rising anxiety. Concerns that AI could replace or significantly change jobs remained relatively low and stable, indicating that many workers are becoming more comfortable integrating AI into their day-to-day work.
Confidence in Skills Remains High
Workers also remain optimistic about their own employability.
Seven in ten respondents said they were highly confident that their current skills would be valuable if they moved to another organisation. This confidence in transferable skills reflects a workforce that increasingly sees continuous learning and adaptability as career assets.
According to James Atkinson, Vice President of Thought Leadership at SHRM, one of the most notable findings is the growing disconnect between employees’ perceptions of the wider economy and their own workplaces.
“One of the clearest patterns in this quarter’s findings is the widening gap between how workers view the broader economy and how they view their own workplaces. While concerns about economic conditions became more pronounced, workers’ confidence in their organisations, their skills, and their ability to adapt remained remarkably consistent.”
Economic Outlook Softens
Although workers remain positive about their own employment situations, views of the wider economy have become less optimistic.
Compared with the previous quarter, favourable assessments of economic conditions, job markets, financial health and the cost of living all declined modestly. The findings suggest that employees are separating concerns about the external economy from their experiences inside their own organisations.
For employers, this distinction presents both an opportunity and a challenge. Organisations that continue investing in competitive pay, career development, meaningful work and responsible AI adoption may be well positioned to maintain employee confidence, even as broader economic uncertainty persists.
About the Research
SHRM’s Q2 2026 Global Employee Monitor surveyed 5,747 employees across 26 countries between April 27 and May 20, 2026. Participants were at least 18 years old and employed either full- or part-time in organisations with at least two employees.
The quarterly study examines workforce attraction, retention, engagement, well-being, AI adoption and employees’ outlook for the future, providing employers with an ongoing snapshot of global workplace trends.
