Strengthening talent oversight in a time of transformation

  • Publication
  • 3 minute read
  • February 11, 2026

Today’s unpredictable business environment can make most management decisions both more complicated and more consequential. Leaders are facing an increasingly complex landscape shaped by technological advancement, economic and geopolitical volatility, regulatory shifts, and evolving workforce dynamics.

Corporate directors have traditionally focused their talent management efforts on the C-suite, leaving oversight of the broader workforce to the executive team. But changing business needs, emerging technology, and the accelerating pace of organizational change have significantly increased talent-related risks and opportunities.

According to PwC’s 2025 Annual Corporate Directors Survey, for 72% of directors, talent management is now a priority being discussed at every board meeting. Here are 5 talent-related themes that may surface at your next meeting:

Digital transformation: The board should evaluate whether the right talent strategy and culture are in place to enable adoption and scale of critical digital technologies.

The emergence of AI: Boards are seeking to understand the impact of AI on talent architecture, skills pathways, and controls and how it is being managed responsibly through more robust workforce planning as organizations continue to evolve from people driven tools to people managing agents.

Return‑to‑office (RTO) mandates: RTO mandates remain a flashpoint. The board must understand the organization’s location strategy and how it impacts workforce composition, talent attraction, retention, and the culture the board is trying to reinforce.

Regulatory shifts: Shifts in immigration policy may restrict access to key talent, slow hiring, and increase costs, complexity, and legal risk as companies navigate tighter visa rules and talent shortages. At the same time, evolving legal and policy expectations around DEI are prompting changes in approach, even as employees and investors continue to expect inclusive cultures—making board oversight of talent strategy and risk essential.

Employee engagement, productivity, and trust: AI-driven job redesign without reskilling, DEI rollbacks, layoffs, and return-to-office mandates may narrow perceived growth pathways and erode trust, belonging, and fairness, with implications for productivity and retention. The board should oversee how workforce and location strategies affect culture, talent outcomes, and trust among employees and broader stakeholders, given the impact on long-term performance.

The takeaways

Director oversight of talent management may be more critical than ever. Companies are dealing with unprecedented business challenges and rapidly evolving technology, requiring constant adjustment of business operations and evolution of business models. These challenges will likely continue to have significant talent management implications, and boards should be proactive in overseeing companies’ policies and practices to support responsiveness and transparency to stakeholders.

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Ray  Garcia

Ray Garcia

Partner, Governance Insights Center Leader, PwC US

Paul DeNicola

Paul DeNicola

Principal, Governance Insights Center, PwC US

Claudia Montgomery

Claudia Montgomery

Managing Director, Governance Insights Center, PwC US

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