HR trends for 2026 and how they can affect your business
The world of work is always changing, so it’s important, as a business owner, that you keep your finger on the pulse. Getting clued up on what’s coming in the word of business and HR can put you at a real advantage when it comes to staying compliant, remaining competitive and attracting and retaining staff.
Here are just a few up and coming shifts expected in the world of HR and how they’ll impact your business:
AI and Automation will play a bigger role
Unsurprisingly, AI and Automation will play a much bigger role for businesses when it comes to things like routine HR admin, onboarding and CV screening.
But don’t be fooled into thinking a robot can solve all your problems and tackle your to-do list, there still needs to be human oversight in order to reduce the risk of any mistakes.
As a small business, you must still ensure fairness, GDPR and good judgement, areas where we, as HR advisers, can help you make a big difference.
Skills-based hiring will overtake traditional recruitment
In 2026 we expect to see more businesses hiring a candidate based on what they can do, rather than what formal qualifications they might have.
As a business, this approach would:
Expand your talent pool, especially if you’re within a competitive sector
Help you spot high-potential employees
Supports internal mobility
Strengthens workplace diversity
Hybrid and flexible working will continue to dominate
Year on year, hybrid and flexible working is becoming the new normal and ignoring this will make your recruitment significantly more difficult.
Why hybrid and flexible working matters:
Helps you attract and retain skilled staff
Reduces burnout and absenteeism
Supports employees with caring responsibilities.
Clear policies and boundaries are key. We’ve helped many SMEs over the years ensure they have the policies needed for their business – in our opinion, one size does not fit all.
HR data will drive more business decisions
Simple insights into your business can help you understand a multitude of mysteries, such as:
Why employees leave
What motivates your team
Which roles are hardest to fill
Where training is needed
Early signs of burnout or conflict
With the right systems in place, HR data becomes a powerful planning tool. It allows you to make informed decisions, spot problems early and build stronger, more stable teams.
Wellbeing will become a core business strategy
Employee wellbeing is fast becoming more than just a ‘nice to have’. It’s slowly but surely becoming part of UK business strategies.
For small businesses, wellbeing support might include:
Regular check-ins
Open conversations around workload
Mental health resources (EAPs, coaching, or wellbeing initiatives)
Financial wellbeing tools, especially during cost-of-living pressures.
If you’d like support in preparing for these trends, whether that’s updating your policies, managing flexible working, improving wellbeing, or building a future-ready workforce, we can help.
Get in touch today to discuss how we can support your business in 2026 and beyond.