Here are key HR areas you should focus on to support your people and your organization effectively.

The experts at Mercer have identified 5 key areas to help you plan for the future and make a real impact on your organization.

1. Simplify and automate to boost efficiency

AI and automation are still important, but the excitement has shifted. Instead of chasing every new tool, start by simplifying your HR and rewards processes. Look closely at your current workflows and policies—are there steps you can streamline or update? When you simplify first, automation works better and is easier to manage.

For example, AI can help you identify outdated or conflicting benefits policies, making it easier to improve the employee experience. Automation can also quickly answer questions about retirement and financial wellness—but remember to keep compliance and data security in mind.

By focusing on simplification, you free your team from repetitive tasks, allowing them to concentrate on developing strategic rewards programs to support employees. This leads to better productivity and a more positive experience for everyone.

2. Customize total rewards to fit your workforce

Your workforce is diverse, and a one-size-fits-all rewards approach won’t work well. Segmenting your employees can help you offer rewards that truly matter to each group.

For instance, front-line workers might value immediate financial rewards and benefits that support work-life balance, while office staff may prefer career development opportunities and long-term incentives.

Use data and employee feedback to understand what each group values most. Then, align your budgets and programs to focus on those priorities.

This targeted approach helps you use your resources wisely, keeping your people motivated without spending on perks that don’t add value. When budgets are tight, smart automation can help you reward top performers, address pay equity, and support critical roles.

By tailoring your rewards carefully, you create a strategy that benefits both your people and your business.

3. Link rewards to business outcomes

Rewards programs are great for attracting and keeping talent, but they should also connect clearly to your business goals and show measurable results.

Sometimes business leaders don’t prioritize updating pay practices. Take this opportunity to explain the value of rewards in their terms, including detailed reporting on how your programs can increase sales, lower hiring costs, or boost productivity.

Take retirement plans as an example. They’re not just benefits—they help your workforce transition smoothly. With many Canadians working longer or delaying retirement, your plans can support phased or early retirements, keeping your business flexible.

Healthcare costs are rising, so it is important to strike a balance between managing expenses and investing in employee wellness. When you link these investments to reduced absenteeism and better productivity, you shift the focus from just cutting costs to supporting growth.

By aligning rewards with clear business results, you demonstrate how HR can drive success, not just control costs.

4. Engage your remote and hybrid workforce

Remote work is common now, but it can make employees feel less connected, less fairly paid, and less confident about career growth compared to those on-site.

To support your remote team, be proactive. Schedule regular check-ins, recognize achievements virtually, and provide clear career paths visible to everyone, no matter where they work. Make sure compensation for remote roles is fair and transparent.

Hybrid work models often show higher engagement, so it is worth considering a strategy of blending in-person and remote work when possible. When remote work fits best, use technology and thoughtful program design to bridge the distance.

5. Collaborate across the business for greater impact

HR and total rewards often work separately, but the best results come when you connect with other teams. Build strong partnerships with IT, Finance, and business leaders to create a more integrated approach.

A key part is having clean, connected people data. Many organizations have good data on customers and products but not always on their people. When your data is organized and linked, you can connect rewards to business outcomes and personalize employee experiences.

With this foundation, technology and managers can help employees get the most from their benefits, such as reminding them to file claims or to increase their retirement savings at the right time. Personalized support makes a big difference in engagement and satisfaction.

You’ll also find younger employees, particularly Gen Z, expect a seamless, connected work experience. Meeting them where they are with relevant, easy-to-use rewards helps keep them motivated.

By working together across the business, you create a total rewards experience that truly supports your people and your organization.

Remember, engagement is more than perks—it’s about helping your people feel connected, valued, and supported in their growth. Listening to your remote employees and tailoring rewards and communication to their needs will go a long way.

Moving forward

Simplify, yet customize your rewards offerings for employees…can you do both at the same time?

When asked about this seemingly conflicting approach, Gord Frost, Mercer’s Global Rewards Solution Leader, stated that “personalization of rewards is absolutely a key trend that has a lot of benefits—ensuring that your total rewards program resonates with all your employee segments and allowing you to attract and retain the best people. At the same time, complexity can drive confusion and ultimately employee frustration. Leading organizations address this by ensuring that they are not just offering more choice and then forcing employees to make sense of it all, but rather [they are] using data and insights to make targeted investments that meet specific employee needs with a high ROI—driving simplification wherever possible and then leveraging technology to provide personalization where it makes sense.”

Focusing on these five important HR priorities will help you build a stronger, more connected, and more effective HR function in 2026. By embracing these areas, you position yourself and your HR team as strategic partners who help your organization grow and succeed. The future of work in Canada is bright, and with a clear plan, you’re ready to lead the way.

If you want support identifying the HR priorities that will help your business, Mercer is here to help.Give us a call at 855-286-5302 or email surveys@mercer.com.

About the author

Rebecca Hall, Principal

Rebecca spent much of her career working in compensation in various corporate roles then transitioning to consulting with Mercer. Her current role, as the Content Leader for imercer.com, allows her to leverage her knowledge of human resources and talent strategy to create materials supporting Mercer’s Products & Services in North America.