With unemployment rising to 5.4%, a slow economic recovery and the Government racing to make changes in legislation before the end of their term, 2026 is looking like it will be an interesting year in the HR space.
“Employees are a company’s greatest asset – they’re your competitive advantage.”
Anne M Mulcahy, Former CEO of Xerox Corporation.
This may be the case, but employees don’t become your greatest asset just by walking in the door.
It takes management effort, focus and a strong understanding of the environment to fully realise the competitive advantage your team can create.
Aside from the legislative changes, what other HR trends should you be considering in 2026?
Our top picks are:
Playing AI Catch up
The use of AI is everywhere now, across every Industry and role. So why aren’t we seeing the productivity gains that AI promised? Many employees and businesses have moved to adopt AI into roles yet haven’t considered what the positive benefits could be.
Are your team doing more in less time? Are they improving productivity? Can you do more with less people, reducing cost? What do you want AI to be used for and what don’t you want it used for? How do you protect data security and privacy?
This year the focus needs to be not just on using AI but on harvesting the benefits.
A renewed Engagement & Employee Wellness focus
With many businesses having been in survival mode for the past few years, the “nice to have” around engagement had gone on the back burner. The result of this is often a passive, unenthusiastic team, negatively impacting results.
Most businesses are right sized now so it is time to refocus on building high performing, highly engaged teams. You may be working with smaller budgets and teams with different needs, so really understanding their drivers and being creative is essential.
Providing essential support for this is having an Employee Wellbeing program.
Outcome based accountability
Accountability is a word we heard a lot in 2025, with more and more leaders wanting it from their team – but not knowing how to get it.
So, what exactly do you mean by accountability? Have you articulated this? Does your team know what they are accountable for? Do your team actually know how to be accountable for expected results? Do you have the systems in place to make this crystal clear and then manage your team accordingly?
This will be shift in leadership style for some, and a change to their way of working for your team. Being deliberate and focused on outcomes will bring about the change you need.
Leadership and Power skills become imperative
As automation, AI and data reshapes the way we work, there is an increasing awareness of the importance of the human centred power skills like leadership, communication, motivation and conflict management.
These power skills are not just complementary to technical skills; they are essential for a thriving business. Can you inspire your team to come on the journey? Can your leaders lead through change?
Communication, adaptability and resilience are all key skills for improving retention and performance, and they are essential for effectively leading your team today.
Salary pressure
Cost of living pressure is still a reality. After several years of stagnant salaries, many employees are looking for significant increases. This conflicts with the business pressure of keeping costs tight. This dynamic can foster dissatisfaction.
Add in pay transparency and a flooded labour market and you may find that some of your team can’t move and so become your silent quitters. Having a well thought out salary strategy which is transparent, well communicated and focused on retaining talent should be an essential part of your HR strategy in 2026.
Continuous Learning and Career Pathing
Ensure that your workplace environment has a continuous learning system to provide new learning opportunities for everyone. This type of feeder system is essential for retention as it opens up internal career path opportunities for talented employees.
Positive People have over 30 years helping businesses establish their HR Strategies and HR Plans.
Contact us now to discuss your HR plan for 2026.