Ena HR’s People Management Predictions for 2026
- katecoulson2002
- 6 days ago
- 3 min read
What business owners really need to know
If 2025 felt busy in the world of people management, 2026 is shaping up to be even bigger. Between new employment laws, changing employee expectations, rapid advances in AI, and a tougher recruitment market, business owners will need to stay sharp, flexible, and human‑centred. Here’s my simple, no‑nonsense view of what’s coming — and what it means for you.
1. Employment law is stepping up a gear
Major changes are already in motion, with more due throughout 2026 and into 2027. In 2026, we’ll see the strengthening of day‑one rights, expanded protections, and wider enforcement powers — all of which will increase expectations on employers to get things right. Consultations and new rules will continue, especially around unfair dismissal, parental rights and flexible working, so business owners should prioritise keeping contracts and policies up to date.
These shifts reflect a broader trend: employment law is moving in a more employee‑protective direction, and businesses who prepare early will avoid last‑minute panic. [hrnews.co.uk]
2. AI will reshape how people work — not replace human leaders
AI has already transformed recruitment, and in 2026 it becomes even more embedded in day‑to‑day HR tasks. Reports show that AI will increasingly take on screening, scheduling and shortlisting, speeding up hiring and freeing up time for more strategic thinking. We’ll also see AI being used more by employees themselves — sometimes to draft grievances or letters — which can make communication feel longer, more formal, and occasionally more confrontational. Employers may need to rethink how they handle internal processes so they remain fair, consistent and person‑centred. [hoomph.co.uk] [hrnews.co.uk]
For small businesses, the opportunity is clear: embrace simple, ethical AI tools that save time, but keep human judgement at the heart of decision‑making.
3. Recruitment gets tougher — and more skills‑focused
Hiring in 2026 will continue shifting away from rigid job titles and towards skills‑based recruitment. Employers are prioritising practical capability over traditional qualifications, especially as technology and automation reshape roles. [jarsolutions.co.uk]
People are looking for:
Development opportunities, not just pay rises
Wellbeing and flexibility
Clear career pathways
Workers in 2026 care more about long‑term employability and being supported to grow. In fact, research shows many employees would now accept structured training instead of a pay rise. [roberthalf.com]
For business owners, the message is simple: offer growth, not just jobs.
4. Retention becomes a competitive advantage
Employees are hanging onto jobs due to economic insecurity — even when they’re unhappy. This trend, sometimes called “job hugging”, can quietly damage morale, productivity and culture if not spotted early. [cezannehr.com]
In 2026, retention isn't about beanbags or gym discounts. It's about:
Good leadership
Psychological safety
Clear communication
Fair and transparent development routes
Happy teams stay. Stuck teams stagnate.
5. Technology investment rises — but more strategically
A large portion of organisations expect to increase HR tech investment in 2026, especially in AI, compliance, wellbeing and data analytics. But they’ll be more selective, focusing on tools that reduce manual admin and provide real-time insights. [ciphr.com]
For small businesses, even modest improvements — an upgraded HR system, better scheduling tools, or wellbeing support platforms — can have a big impact.
Final thought: 2026 is the year to get intentional
The most successful businesses this year will be those that:
Stay ahead of legal changes
Use technology wisely
Build people‑first cultures
Prioritise skills and development
Lead with clarity, fairness and empathy
If you’d like help reviewing your HR priorities or preparing for what’s ahead, we're always here to support you — let’s make 2026 your strongest year yet.
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