HR Trends Shaping High-Performing Teams in 2026
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What's Next for HR? Here are Several HR Trends Shaping the Workplace in 2026
HR leaders are facing pressure to adapt to new workforce realities, from compliance crackdowns to talent shortages. These trends aren’t just predictions; they’re the focus areas forward-thinking employers are already prioritizing.
1. Skills-Based Hiring and Internal Mobility
What is skills-based hiring and why does it matter?
As the labor shortage deepens, organizations are doing more with less and doubling down on upskilling current employees to grow from within. Skills-based hiring and internal mobility prioritize employees’ capabilities over credentials when making hiring, promotion, and development decisions. This approach often helps organizations fill roles faster, reduce hiring costs, boost retention, and improve diversity.
OneDigital’s work with a Biosciences company demonstrates how structured career paths and competency frameworks can strengthen internal mobility and retention. Through the development of clear career ladders, defined job descriptions, and transparent expectations, the organization was able to enhance talent acquisition, support internal growth, and prepare for a significant hiring push, improving engagement and reducing hiring friction across teams.
To get started, organizations should identify key skills for each role and update job descriptions and postings to focus on those skills, ensuring they have qualified employees in every role.
2. Pay Equity and Transparency
How are pay equity and transparency laws evolving?
Pay equity and salary transparency laws are expanding across states, requiring employers to rethink how they approach compensation. Many states, including California, Colorado, New York, New Jersey, and Washington, have requirements in place regarding salary disclosures. Most of these states also ban asking about salary history to prevent perpetuating past inequities.
To stay compliant, organizations should:
- Establish clear pay bands
- Conduct a pay equity audit
- Create a remediation plan for any gaps
- Update job postings with compliant pay ranges and benefits
- Implement ongoing pay monitoring
3. Personalized Benefits
What benefits matter most to employees now?
It depends. With four or more generations in the workplace, a personalized approach to benefits is becoming essential. A good way to gauge this is by using effective employee surveys and spending time analyzing what benefits best fit your organization’s diverse workforce.
Findings from OneDigital’s Employee Value Perception Study highlight the importance of aligning benefits with life stages, seniority, and other measurable traits. For example, younger employees may prioritize flexibility and career development, while more senior workers may value retirement planning and financial wellness.
By strategically using data and employee feedback, employers can create benefit packages that resonate across demographics, improving retention, morale, and long-term organizational performance.
4. Supporting Employee Health and Wellbeing
How can employers address burnout and boost wellbeing?
Ongoing economic pressures, including inflation and tariffs, are fueling widespread stress and burnout. Employers need to monitor burnout and provide meaningful support for employees, such as:
- Employee Assistance Programs (EAPs)
- Mental health benefits
- Financial planning tools
- Leadership trainings to recognize signs of burnout
A consistent focus on wellbeing helps create a culture where employees feel supported, valued, and motivated to perform at their best. By taking a proactive approach, employers can strengthen employee engagement, reduce turnover, and build a healthier, more sustainable workforce.
5. Workforce Models
Remote, hybrid, or full-time in-office, what’s the best workforce model for 2026?
Though many organizations are considering return-to-office mandates, hybrid and remote models remain popular and expected in 2026. This shift offers access to a wider talent pool but also brings challenges: collaboration gaps, disengagement risks, and compliance with state-specific employment laws.
To navigate this evolving model, employers should:
- Define clear, flexible work policies
- Ensure compliance with local and multi-state labor regulations
- Invest in collaboration and engagement technology
- Offer virtual onboarding, feedback, and recognition programs
6. AI in the Workplace
How will AI impact the workplace in 2026?
AI is quickly becoming part of the regular rhythm of work, and it’s changing expectations across every role. What used to take hours can now be handled in minutes, and it’s forcing all of us to rethink how we operate. For businesses, the real value isn’t cutting people; it’s freeing them up to do the work they were hired for.
For example, AI can automate repetitive tasks such as resume screening, interview scheduling, payroll audits, answering PTO and benefits questions, updating employee records, and even drafting routine emails or policies. These are the everyday tasks that quietly eat up huge chunks of time without actually moving the business forward. When AI handles them, HR and managers can stay focused on people, strategy, and real problem-solving.
But for this to work, leaders have to set some structure for when and how AI is used, ensure people understand the guardrails, and get everyone comfortable with it. When companies do that, the workflow becomes cleaner, decisions get made faster, and employees stop feeling bogged down by the little stuff. It’s less about “adopting a new technology” and more about building a more innovative, more modern way of working that can actually scale as the business grows.
Building a High-Performance Culture
These trends offer more than future-gazing; they provide a roadmap for employers who want to build high-performing, people-first teams in 2026 and beyond.
Our expert team of HR Consultants can help you align your HR vision with your business goals, empowering your teams to grow, perform, and stay.