Top HR priorities for 2026

Author: Hannah Mason

From navigating major employment law reforms to boosting line manager capability, our latest HR departments research reveals the initiatives that will define HR strategy in the year ahead.

HR teams are now planning for the year ahead, with 2026 looking to be a busy year for HR professionals. Based on insights from our 2025 HR departments research, this piece explores the top initiatives shaping HR strategies for 2026. The most important issues or areas for HR in 2026 are shown in Figure 1, highlighting the variety of topics being considered.

Figure 1: Most important issues or initiatives for the HR function in 2026

Preparing for employment law changes

With the Employment Rights Bill introducing major employment law reforms, it is unsurprising that preparing for these changes is a top priority for HR teams in 2026. A range of changes are expected to come into effect within the next year, including extended eligibility for statutory sick pay, limits on the use of fire and rehire, and statutory paternity and ordinary parental leave becoming day-one employment rights.

Organisations are planning on reviewing policies, updating handbooks and training line managers to ensure compliance with the new legislation. One HR professional who shared that the Employment Rights Bill is their top priority in 2026 explained that their HR team would be "ensuring policies and practices are fit for purpose with the pending legislation. This is to be approached with a detailed delivery plan, with communication and training".

Manager development has remained a top priority for HR teams, and 2026 is no exception, emerging as the most commonly reported initiative for 2026.

In our 2025 line management research, we found that while the majority of HR professionals feel that HR and line managers work well together, there is a clear skills gap for some line manager responsibilities. Just two-fifths (40.7%) of HR professionals agreed that line managers effectively manage employee conduct and behaviour, and only close to half agree that line managers fulfil their absence and performance management responsibilities at their organisation (53.3% and 46.7%, respectively). This skills gap highlights the opportunity for targeted initiatives, with one organisation describing their key HR focus for 2026 as "upskilling managers through a dedicated programme, designed to target skill gaps specific to our managers".

Planning for the future

Artificial intelligence (AI) adoption, economic volatility and an ageing workforce make future planning more critical than ever. A number of HR professionals shared that a key priority for 2026 will be succession planning, explaining the need to "understand potential risks and gaps within the business and what is needed to fill them".

For other organisations, strategic transformation is a key focus for the next year, with one HR professional sharing that their priority is to "ensure that the operating model is fit for purpose, so that we are in a position to deliver the business strategy for the next five years".

As AI becomes a transformative force in HR, upgrading technology and core systems will be critical to ensure readiness for future advancements. In the 2025 artificial intelligence in HR research, around one-third of organisations (37.8%) reported technological challenges as a barrier to implementing AI and experiencing the benefits from the new technology.

The organisations that thrive will likely be those that combine strategic workforce planning with technology readiness, ensuring systems, skills and structures are aligned to meet the challenges and opportunities of the coming years.

Cultural transformation

In 2026, culture will be a strategic priority, embedded within broader transformation efforts rather than treated as a standalone initiative. Our Employee experience and organisational culture research 2024 found that around two-thirds of organisations (68.2%) were focusing on company culture and values in order to improve employee experience.

Looking ahead to 2026, one organisation shared that their main priority is "culture change. We have to adapt in order to win our next funding bid, and so there will be a focus on increasing productivity, quality and engagement and supporting managers to work autonomously.  There is a big roadmap of items to tackle, from revamping reward and recognition, to increasing flexibility and engagement." This reflects a broader trend among some organisations, with culture no longer seen as a "soft" element but as critical to organisational success.

Performance management

Effective performance management is vital for organisational success. Yet fewer than half of HR professionals believe managers handle this well, according to our HR and line management research 2025. It is therefore not surprising that one-third (31.9%) of HR departments rate performance management as an important initiative for 2026.

The introduction of statutory probation periods and day-one protection from unfair dismissal, as proposed in the Employment Rights Bill, may influence performance management approaches, when they come into force in 2027. This highlights the need for proactive performance management strategies, particularly for new employees, in order to remain compliant with the new legislation.

However, effective performance management is not solely about compliance, it's also about creating a culture of accountability and growth. Where there is a well-established culture of feedback, organisational performance tends to benefit.