Structural Change and Transformation: From episodic to continuous
Change was present in 2025, often linked to specific events such as mergers, large projects or organisational transformation. The HR challenge was largely about maintaining engagement through disruption and aligning employees with evolving business direction.
In 2026, transformation is expected to become more systemic and ongoing. Many organisations are mid-way through or planning major initiatives such as:
- New job architecture and grading structures
- Career and capability frameworks
- Skills-based pay models
- Reward redesigns during mergers or restructures
These programmes require sustained investment, robust data and strong sponsorship at a time when budgets are under strain. In both years, HR professionals highlighted that poorly managed change poses a significant risk to retention, morale and trust.
Technology, Data and AI: From enablement to necessity
Technology played a supporting role in 2025, particularly in recruitment, where AI and digital platforms were used to streamline hiring and manage skills gaps. Upskilling and internal development emerged as priorities, but technology was often seen as an enabler rather than a core capability.
By 2026, HR technology, analytics and AI are increasingly viewed as essential infrastructure. Organisations recognise the need for better data to:
- Support pay and workforce decisions
- Manage complex reward frameworks
- Improve productivity and workforce planning
- Enable responsible AI adoption and role evolution
This reflects a broader shift toward evidence-based people management.
While in 2025, organisations highlighted how they were experimenting with technology to improve efficiency, in 2026, HR professionals are focused on building more mature, integrated HR tech ecosystems. In both years, technology is closely linked to managing skills shortages and improving decision-making.
Employee Experience, Engagement and Culture: The human constant
Across both years, employee experience remains a vital and vulnerable priority. In 2025, organisations focused on engagement during uncertainty, flexible working expectations and enhancing benefits where pay growth is limited.
In 2026, the emphasis deepens to include wellbeing, psychological safety and cultural stability during prolonged change. Respondents highlight burnout risk, mental health concerns and the importance of trust, particularly as transparency increases and restructures continue.
While 2025 predictions focused on sustaining engagement through uncertainty, in 2026, the focus shifts towards protecting wellbeing and morale for the long-term. Culture and experience remain critical differentiators when financial rewards are constrained.
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The comparison between 2025 and 2026 reveals not a shift in priorities, but a deepening of them. Many challenges remain the same, but their intensity, complexity and permanence increase. What begins as cost management, preparation and adaptation in 2025 evolves into structural redesign, transparency and execution in 2026.
For HR and reward leaders, the task ahead is not simply to weather another difficult year, but to rethink how reward, capability and culture are designed for a constrained, regulated and transparent future. The organisations that succeed will be those that balance cost discipline with clarity, compliance with trust, and transformation with humanity.
