6 ways HR can set themselves up for success in 2026 in summary:
In 2026, HR teams face major shifts in technology, employee expectations, and compliance. AI and automation are transforming workflows, while engagement and retention remain critical in a competitive labour market. Data-driven HR, multi-generational workforce needs, and new employment laws – including AI governance and ESG-linked reporting – are reshaping people strategy. To stay ahead, organisations must combine modern HR technology with strong culture, clear communication, and flexible working practices. This blog explores six key ways HR teams can future-proof their strategies in 2026.
If there’s one thing HR has learned over the past few years, it’s that the world of work – much like the great British weather – is gloriously unpredictable.
Between AI breakthroughs, hybrid working headaches, shifting employment laws, and the ongoing talent crunch, planning for “business as usual” just isn’t an option anymore. But for all the uncertainty both in the world of business and wider economy, 2026 holds huge opportunities for HR teams ready to lead from the front.
The coming year is shaping up to be a defining one for how organisations use technology, manage people, and build resilience in an unpredictable world. HR will need to juggle AI adoption, hybrid fatigue, and constant change – all while keeping people engaged, compliant, and genuinely cared for. That’s a heck of a to-do list!
So, what do HR and business leaders need to focus on if they want to stay ahead of the curve? Here, we look at the six big themes to get right in 2026 (and maybe even beyond).
1. Get smart about AI and automation
Let’s get one thing out the way first: AI isn’t coming for your job. But, it is changing it. From automating admin-heavy HR tasks to supporting smarter recruitment decisions, AI tools are becoming business essentials – not just another fad. The real challenge for 2026 will be balance: using AI and automation to save time without losing the vital human touch.
For example, a CIPD report on AI and people management notes that HR teams will increasingly need to understand how algorithms make decisions, and be confident explaining them to employees. Transparent, ethical use of AI is fast becoming a core HR competency, not just a “nice-to-have”.
Luckily, that’s where modern HR systems like Cezanne come in. They’re designed to automate the dull stuff – approvals, notifications, reporting – while using AI-driven features to streamline HR workflows and enhance the employee experience. However, learning to entrust AI and becoming more savvy on how to use it is going to take a bit of courage – and a shift in mindset. HR teams need to get comfortable with letting AI handle the admin, while they focus on the stuff machines can’t do: empathy, nuance, and all those messy human conversations.
2. Retention still matters… so keep your people close.
The great resignation may now just be a footnote in history, but the talent market’s still brutal. Skills shortages, hybrid burnout, and a growing preference for values-driven employers mean HR teams can’t take loyalty for granted. In fact, it should a key part of your strategy.
In 2026, retention won’t just be about pay or perks… it’ll be about purpose. Employees want meaningful work, flexibility that actually works for them, and visible career paths. They also want to feel recognised, connected, and trusted (yes, even when working from their kitchen table). And the stats back this up!
A recent Gallup State of the Global Workplace report found that only 23% of employees feel engaged at work; but those who are engaged are 87% less likely to leave their employer. That’s a huge argument for investing in engagement tech, recognition programmes, and wellbeing strategies that actually work. And sometimes, it’s the simple things that make the biggest difference.
Flexible, self-service HR systems help employees manage their own data, book time off, and stay connected without jumping through hoops; so, all the everyday frustrations that quietly chip away at engagement. Remove those barriers, and you create a smoother, more positive employee experience that people genuinely want to stay part of.
3. Actually use your data, don’t drown in it
Most organisations now have more people data than they know what to do with. Headcount, engagement scores, turnover, DEI metrics… you name it, HR is tracking it. The question is: are you actually using it?
In 2026, the focus shifts from descriptive to predictive analytics. The best HR teams are using their data not just to report on the past, but to forecast attrition, spot burnout before it happens, and identify future skills gaps. So, if you’re not doing this already, it’s time to step up before you get left behind.
Don’t believe us? Well, a recent Deloitte Human Capital Trends study found that organisations leveraging predictive analytics for workforce planning are twice as likely to exceed financial targets. So, if you’re not making use of your workforce data, you could also be hurting your bottom line!
However, it’s worth bearing in mind that great HR data isn’t about just about fancy dashboards. It’s about decisions. If your HR software isn’t helping you analyse your data to make better, faster decisions, 2026 is the perfect time to rethink your setup. Systems like Cezanne give HR leaders real-time insight into absence, performance, and retention trends – without needing a PhD in data science – so why not take a look?
4. Manage the multi-generational workforce (again)
For years, we’ve talked about Baby Boomers, Gen X, Millennials and Gen Z. Well, brace yourself; because Gen Alpha is just starting to trickle into the workplace. That means even more complexity in communication styles, work preferences, and expectations around flexibility and feedback.
But it’s not just the next generation to think about. At the same time, older workers are staying longer in employment, sometimes reskilling entirely. In fact, according to ONS data, nearly a third of the UK workforce is now over 50, and that figure’s rising. So, managing that diversity of age and experience will take some smart thinking around job design and development.
Using an HR system that includes configurable performance and learning modules can help ensure development conversations happen across multi-generational workforces… but most importantly, tailor those learning experiences to different demographics – not just the loudest or newest voices in the room.
5. Stay ahead of employment law changes
The pace of legislative change isn’t slowing down, and 2026 will bring more to keep HR on its toes. From new guidance around AI governance and employee data rights, to evolving rules on flexible working, family leave, and pay transparency, compliance is going to be a moving target.
HR teams should also keep an eye on sustainability-linked reporting requirements, as ESG disclosures begin to pull more workforce data into scope. The UK Government’s Review of Net Zero backs this up, stressing that organisations will be expected to show not only how they treat the planet, but how they treat their people.
Keeping all your HR records, policies, and compliance documentation in one secure system can save a lot of time (and not to mention headaches) when audits or reviews come knocking. So, make sure you future-proof your processes and policies now!
6. Build business resilience through culture
Finally, culture will always remain your greatest asset… but also your biggest risk. After years of economic and social turbulence, employees want to work for organisations that feel human, not corporate.
That means consistent communication, visible leadership, and a culture where wellbeing and belonging aren’t just slogans. In 2026, the most successful HR teams will be the ones shaping culture actively; using insights from pulse engagement surveys, feedback tools, and exit interviews to keep things healthy.
As our own research into company cultures discovered, resilient cultures are built on recognition, healthy wellbeing and a clear sense of shared purpose – not on ping-pong tables or marketing-generated slogans. This (again) is where a good HR system can give some vital support.
HR systems that can make communication, recognition, and feedback simple will are powerful allies for keeping culture alive, even when your people are miles apart.
Beyond 2026
2026 is a year for confident, curious HR teams to lead the way; combining tech innovation with empathy, compliance with creativity, and data with good old-fashioned common sense. In short, the businesses that succeed will be those that stay agile, invest in their people, and never stop learning.
So, what’s on your HR radar for 2026?
Kim Holdroyd
HR & Wellbeing Manager
Kim Holdroyd has an MSc in HRM and is passionate about all things HR and people operations, specialising in the employee life cycle, company culture, and employee empowerment. Her career background has been spent with various industries, including technology start-ups, gaming software, and recruitment.
