HR Trends for 2026

Filed under: Benefits

Artificial intelligence continues to dominate the conversation with regard to company operations, but how can Human Resource departments benefit from AI over the coming year? After all, in terms of transforming company culture, AI presents concerns about eliminating jobs. The challenge for HR is to advise company leaders on the best ways to integrate AI into current operations while reassuring new recruits and existing workers that their jobs are secure. Admittedly, that task is easier said than done.

 AI

Having overcome much of the unfamiliarity and uncertainty of artificial intelligence, companies are now grappling with the day-to-day hidden costs and pitfalls in practical use situations. Perhaps one day it will measure up to the hype, but for now AI is yet another innovation that must be tamed and substantiated. While challenges remain, a recent SHRM poll found that 89 percent of CEOs expect AI to transform how their organizations engineer value in 2026. Some of the applied HR uses trending this year include:

• Customizing worker upskilling programs for continuous learning experiences
• Deploying data-driven performance reviews with less reliance on subjective assessments
• Recruitment screening and assessments for AI fluency
• A new job category: AI Manager/AI Automation Engineer for AI-savvy, entry-level recruits responsible for ensuring accuracy and efficiency of AI tasks previously relegated to entry-level jobholders
• Helping workers integrate AI into their daily workflow; discovering ways for AI to enhance productivity as opposed to replacing workers

FOBO

Employers walk a fine line between investing in AI for more efficient and cost-effective automation, and countering workers’ “Fear of Becoming Obsolete” (FOBO). In particular, mid-career and older workers concerned about losing their jobs may seek employment with less forward-moving competitors – taking all their industry knowledge and experience with them.

Leaders should proactively address this fear (and reality) through frank communications about strategic AI plans for company operations and offer access to relevant training so workers can stay current with AI skillsets.

Incumbent-Based Lateral Moves and Promotions

Develop a database of incumbent workers’ existing and continuous learning skillsets, using machine learning to identify workers well suited for a new position or one HR is having trouble filling.

Mandatory Skills Training for Leaders

Today’s quickly evolving tech environment can no longer tolerate mid-level or even executive suite dinosaurs. People in leadership positions must possess a foundation of ongoing skills development so that they are not obsolete in 10 years. Fast-track leaders in the near future will be dominated by much younger adults who have developed tech and personal skills honed by their inherent familiarity with technology and empathy for mental health/burnout concerns.

An HR trend in 2026 is to no longer position advanced skills and ongoing leadership training as optional. To stay relevant and optimize management career paths, employers must set an expectation of continuous professional development as a strategic priority.

Decentralization: RTO vs EVP

Company mandates for post-pandemic return-to-office (RTO) policies are perceived by workers as a lack of trust, which can undermine productivity and morale. In fact, Korn Ferry’s 2025 Workforce survey discovered that while 59 percent of participants worked onsite full-time, 40 percent were not happy about it and 25 percent said they would prefer to work full-time remote – which many have already proven they can do.

This disconnect continues to present challenges in both recruitment and retention, with employers needing to take a hard look at their employee value proposition (EVP). Moving forward, employers who want to attract and retain top talent may need to integrate more flexibility, setting up a showdown between RTO vs. EVP, particularly in competitive fields.

Decentralized Workforce

One of the outcomes of the pandemic was the dismantling of older talent models. Freelancers, micro-teams, and AI agents have transformed the workforce into project-driven and results-oriented decentralization. Performance is less about process and more about productivity, with projects delivered on time without the need for close supervision. HR leaders can help promote organizational agility by tapping outsourced talent to contain costs and react more quickly to industry trends and innovation.

Keeping Tabs on the Economy

The current economic environment remains fluid. Fluctuations in global tariffs, geopolitical disputes, the job market, and consumer inflation are expected to persist in 2026. According to Korn Ferry’s recent CEO & Board Survey, 60 percent of respondents say they expect economic uncertainty to have the most significant impact on their businesses this year. In preparation, many companies are flattening their management hierarchy by eliminating middle managers and replacing entry-level work with AI. Eight out of 10 board members and chief executives say they expect to condense their workforces by 20 percent over the next three years.

According to a 2025 Dataiku/Harris poll, 74 percent of America’s CEOs believe they will be out of a job if they cannot deliver measurable business results using AI. Adding to the complexity is today’s unpredictable economic environment as well as worker and consumer expectations.

As we move into 2026, it may be helpful to consider implementing AI strategies similar to how  companies have introduced new processes and policies in the past. It is simply another resource designed to optimize operations, streamline administration, and make workers’ jobs easier.

Technology, a decentralized workforce, and online skills training create fewer touchpoints for human interaction among workers, managers, and leadership. It is up to HR to find ways to close these gaps via communication, outreach training, and internal promotion opportunities. Deploying AI solutions can actually help secure a better-prepared and more skilled pipeline for managers and C-suite executives.

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