Big change is coming for HR and L&D in 2026, and standing still isn’t an option. From AI and skills gaps to retention headaches and hybrid work tensions, what should leaders focus on? Let’s break down the seven trends shaping the year ahead, with practical, no-nonsense guidance from Robin Adda
2026 is already emerging as one of the most pivotal moments for HR and L&D in modern history. Pressures across talent pipelines, ongoing debates on remote work, accelerating AI adoption, widening skills gaps and shifting employee expectations have all been building.
“With thoughtful planning and a balanced approach, the pressures of 2026 can be moulded into strategic advantage”
Of course, planning for the future of the workforce is a job that is never finished, but reacting to the key pain points before they have taken hold is one of the smartest and most efficient tactics for long-term success. Let’s break down the trends set to define the year ahead, along with some practical guidance for leaders on how to combat them.
1. AI will build new job opportunities – not eliminate them
AI, when used correctly, can help boost efficiency and prepare people for new work, versus automating roles entirely.
In 2026, teams should use AI to identify skills gaps. It can map individual training gaps that will help accelerate development, open new career routes and help futureproof companies from a skills and talent deficit.
2. The talent exodus will continue – making L&D mission-critical
Workday’s 2025 Global Workforce Report found that high performers are leaving at increasing rates across all industries, and 2026 isn’t showing signs of bucking this trend.
The companies winning the war for talent will be those investing internally in career mobility, skills-based development and growth pathways – especially for loyal employees and star performers.
With mobility high and expectations rising, development becomes one of the strongest retention levers available. HR and L&D leaders can look at implementing clear mobility frameworks,including growth plans, while making progress visible through clear milestones.
3. Performance management will become more automated – human insight will matter more than ever
As a result of AI, automation in performance evaluation will naturally increase, but the results can be damaging. Without a personal touch, real coaching and feedback, teams will slowly lose trust.
HR leaders will need to resist quick efficiency wins and double down on human-led support. Yes, automation will support performance evaluation, but human judgment remains essential. It’simperative then that company leaders equip managers to interpret and contextualise AI insights – so try to include coaching to help managers balance data with empathy and reinforce regular check-ins.
4. Recruitment will shift inward – but must be balanced with fresh thinking
Internal hiring is growing fast. In 2025, 61% of roles at Fortune 500 companies were filled internally, a significant rise from just 28% in 2020 (Gartner and LinkedIn).
As budgets tighten, organisations will continue to rely heavily on internal mobility to fill capability gaps. This helps in the short term, but without external hiring and junior talent, companies risk a lack of diversity in their talent pool – meaning, a lack of fresh perspectives and ultimately, stagnation. Teams must strike a balance; grow from within, but don’t close the door to new mindsand new ideas!
5. Entry-level roles will decline further – until companies feel the consequences
According to Gartner, entry-level roles are declining sharply as organisations rely more on mid-level talent – a trend that places increased pressure on hiring and development strategies in2026.
The continued erosion of junior roles is now becoming a long-term liability and without nurturing early-career talent, the pipeline collapses. This year, companies will need to confront the cost of under-investing in emerging talent in the long term, as it remains the foundation of a sustainable workforce.
6. The AI productivity plateau will hit – and skills training will be the only way through
Many organisations will experience a slowdown in AI-driven gains as they hit the ‘productivity plateau’. The solution isn’t more technology, it’s skills development! HR and L&D teams will need to build AI literacy, new workflow training on creative problem-solving and critical thinking (and psychological readiness to help employees adapt and succeed).
Productivity will now hinge on human capability rather than more tools. Creativity, problem solving and confidence with AI workflows become the next competitive edge.
7. Remote work will remain a delicate balancing act
Remote and hybrid working aren’t going away, but expectations from employers and employees are diverging. Companies continue to push for return-to-office, emphasising collaboration, culture and innovation. While many workers value flexibility, autonomy and work–life balance, and are willing to look elsewhere if remote options disappear.
Clarity – rather than over-the-top strictness – will define success and, in an increasingly digital world, the human touch will continue to make all the difference. Employers must explain the purpose behind in-office expectations, offer flexibility where possible to support retention and train managers in hybrid leadership, communication and inclusion.
How to thrive in 2026
In summary, 2026 marks a crucial turning point for HR and L&D. The organisations that thrive will be those that invest in skills, embrace human-centred leadership and use AI as an enabler of opportunity, not a replacer of people. With thoughtful planning and a balanced approach, the pressures of 2026 can be moulded into strategic advantage.
Robin Adda is Founder and CEO of SkillsAssess
