HR leaders are facing a critical moment as 2026 approaches. New technologies and workforce expectations are once again reshaping the way our companies operate and, as a result, our HR strategies. That’s nothing new, but if the data is any indication, it’s happening faster than ever: one-third of organizations expect hiring to be handled entirely by artificial intelligence (AI) in 2026, and two-thirds say skills are their priority in recruiting.
Your team will need to be both innovative and agile as you anticipate HR trends in 2026 and plan how you’ll respond. Explore the biggest trends shaping HR next year and get insights and strategies to help you lead your organization into the future with confidence.
Top 2026 HR Trends To Watch & How To Prepare
Your HR team should be in-the-know about 2026 talent management trends the experts are predicting — but don’t just educate them. Instead of reacting to these shifts as they happen, plan how you can leverage them to drive better outcomes for your organization.
Trend #1: HR Continues Investing in AI
Even in human resources, AI tools are becoming a cornerstone of how teams operate. Like we mentioned, many expect their hiring process to be totally AI-powered in 2026, and it’s easy to see why. 43% of HR professionals said upgrading their HR tech to streamline tasks and workflows is a top priority — AI’s biggest strengths.
Gartner research shows that using AI to its full potential can lead to 29% HR productivity gains, a significant impact. AI can help the entire HR function make smarter, faster decisions, whether it’s identifying top talent, predicting workforce trends, or personalizing employee experiences. But to unlock these benefits, your team needs to go beyond implementation and focus on building skills and strategies to use AI effectively.
Opportunities for HR Leaders
- Upskill Teams in AI Tools: Train your HR staff on responsible use of AI platforms your company allows, from ChatGPT to AI features in your talent management platform. These solutions can save hours, completing manual work, data analysis, and more in record time.
- Audit Hiring Algorithms for Bias: Regularly review AI hiring solutions to ensure they’re not unintentionally filtering out qualified candidates or underrepresented groups. Implement checks and balances to maintain fairness.
- Streamline Administrative Tasks: Automate repetitive processes like payroll, benefits administration, and compliance tracking to free up HR teams for strategic initiatives.
- Implement Predictive Analytics: Use AI to forecast workforce trends, like turnover risks or future hiring needs, and develop proactive strategies to address them.
Trend #2: Employee Upskilling & Reskilling in the AI Era
If you’re not feeling the skills gap yet, you probably will be soon — experts estimate the U.S. will have a gap of more than five million skilled workers by 2032. As AI continues to reshape how work gets done, the demand for new skills is only growing. That means it’s time to prioritize upskilling and reskilling to ensure your workforce is ready for what’s next.
It’s not just about technical skills, either. Employees need to be collaborative and ready to solve problems in a workplace that’s constantly evolving. Invest in your people now, and your organization will be better positioned to thrive in the future.
Opportunities for HR Leaders
- Encourage Internal Growth: Develop clear pathways for employees to move into new roles, supported by reskilling initiatives.
- Leverage Data to Stay Ahead: Use talent analytics to identify emerging skill gaps and address them proactively, like with skills-based hiring.
- Create Targeted Training Programs: Identify the specific skills your organization will need in the next three to five years, and build training programs to address them.
Trend #3: Balancing Growth & Efficiency
Growth is exciting, but it’s not always easy. 2026 HR trends point to a need for scaling teams and processes without overextending resources. The challenge is balancing the push for innovation with the need to stay efficient.
Working efficiently doesn’t mean cutting corners. It means working smarter by streamlining workflows and sharpening your team’s focus on developing strategy. This way, your HR team can step into the future of work, support growth, and avoid burnout.
Opportunities for HR Leaders
- Simplify Workflows: Audit your processes to eliminate unnecessary steps and make room for what’s most important.
- Focus on High-Impact Projects: Prioritize initiatives that directly support business goals and let go of the rest.
- Plan for the Future: Use workforce data to anticipate needs and ensure your team is ready to scale.
Trend #4: Driving Performance With Company Culture
Company culture sounds like a buzzword, but it’s actually the foundation for how your people work, stay engaged, and how you attract and retain top talent. It’s also a driver of their performance. A performance management strategy rooted in culture that makes employees feel connected to your values — and shows those values in action — makes them more engaged, motivated, and productive.
In 2026, it’s time to double down on culture, especially as hybrid and remote work continue to evolve. A strong culture doesn’t happen by accident. It requires intentional effort to align your values with how your team operates and performs.
Opportunities for HR Leaders
- Tie Culture to Goals: Show employees how your values directly support business objectives, so they see the bigger picture.
- Measure Cultural Impact: Use surveys and performance data to understand how culture influences engagement and results.
- Recognize High-Performers: Celebrate employees who embody your values while driving results, reinforcing the connection between culture and performance.
Trend #5: Cultivating Future-Ready Leaders
Leadership skills are in high demand. 86% of HR leaders said their companies will need to create long-term strategies for developing those skills. Only 20% of HR leaders said their company has leaders to fill critical roles right now. But recent research from Harvard Business Review indicates that only 16% of people leaders have the skills they need to be good leaders.
The skills these leaders lack include qualities like awareness, compassion, and communication. Those are essential for building employee engagement, fostering trust, and forming high-performing teams. Cultivating these skills requires understanding each leader’s strengths and helping them grow in ways that align with company goals.
Opportunities for HR Leaders
- Invest in Personalized Development: Offer training and mentorship programs tailored to individual leaders’ needs. You can also invest in software, like a learning management system (LMS) that uses AI to help create tailored growth plans.
- Spot Potential Early: Use performance data and manager feedback to identify employees with leadership potential.
- Prepare for Change: Equip leaders with the tools and skills they need to guide their teams through uncertainty, like coaching and real-time talent analytics.
Trend #6: Making Employee Well-Being a Business Priority
Employee well-being has a significant impact on productivity, which in turn affects the business’s bottom line. When your company culture includes prioritizing overall well-being, you create an environment where people can thrive. When employees feel supported, they’re more engaged, productive, and likely to stick around.
Employee expectations around how their company considers their well-being have changed alongside our understanding of its importance, too. Today, eight in ten employees say mental health and well-being training is essential for a positive workplace culture.
Companies need to take a proactive approach to well-being, addressing not just physical health but also mental and financial wellness.
Opportunities for HR Leaders
- Simplify Benefits Access: Make it easy for employees to understand and use the resources available to them. Implement self-service portals and AI HR chatbots to provide assistance to employees without overwhelming your team.
- Use Feedback to Guide Wellness Programs: Regularly check in with employees to ensure your initiatives are meeting their needs, whether during one-on-one check-ins or via company-wide surveys.
- Encourage Flexibility: Support work-life balance with policies that give employees more control over their schedules or work location.
2026 will bring new challenges and opportunities for your HR team, but the key to success remains the same: staying proactive. Focus on the trends shaping the future, like AI, upskilling, and company culture, and you can position your organization to thrive.
Future-Proof Your HR Strategy
Unlock deeper insights and actionable strategies for every HR trend. Download our free resource, 6 HR Trends & 34 Ways To Stay Ahead, and give your organization the tools it needs to thrive in 2026 and beyond.
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