What HR Leaders Will Really Face in 2026
The economy is turning, the talent landscape is shifting, and HR’s real work is just beginning
Every January, the same predictions flood our feeds: AI will change everything, return-to-office debates will continue, and employee wellbeing will stay in the spotlight. But none of these headlines capture the real challenges HR teams will face in 2026.
The trend I’m watching most closely is this: the economy is starting to shift in a positive direction for many organizations. It’s not the 2021 hiring frenzy, with bidding wars or panic hiring, but a healthier, steady momentum that encourages companies to invest again. This creates a very different environment where growth is possible, but only if HR has foresight and leadership to help their organizations navigate these changes wisely.
1. A Positive Economic Shift Will Trigger Selective Hiring and Surprising Turnover
As confidence returns, companies will begin strategically adding talent to accelerate capabilities. But there’s a risk that many are not thinking about. High performers who stayed loyal through years of uncertainty will finally see options open again. If organizations haven’t invested in development or leadership capability, they will see turnover spike of the very group they can’t afford to lose. Retention will require intention.
2. Workforce Design Becomes a Board-Level Conversation
2026 will force companies to move beyond experimentation and finally design a blended workforce that integrates employees, external talent, and AI/agentic systems into one coherent operating model. Without this focus, companies will continue to face challenges within their organizations rather than accelerating everyone's performance.
3. Leadership Capability Will Determine Whether Growth is Sustainable
One thing I’ve learned in my years in HR. Growth exposes capability gaps quickly. There are a few areas that leaders will need to learn to do…quickly.
Manage complex, blended workforce and workflows.
Make decisions with imperfect information, mostly because everything is changing so fast.
Maintain alignment across the organization as processes and SOPs struggle to keep up.
Keep or build trust during this next season.
Leadership Capability will be the differentiator on how well organizations capitalize on an improving economy.
4. Talent Acquisition Splits into Two Distinct Operating Models
We have seen the cycle too many times. Hiring slows and TA teams get demolished. Hiring turns around, and the TA gets overwhelmed. This next year, high-performing TA teams will strategically create a dual structure:
Speed Teams for operational, high-volume roles
Strategic Talent Partners for leadership and capability-critical hires
This specialization will become crucial as demand resumes. Identifying a small number of strategic partners, internal or external, will allow TA teams to meet demand and ensure they bring in the best talent to fill roles.
5. Employee Experience Shifts focuses on Frictionless Work
As the economy improves, employees will reassess where they commit their time and energy. Their top priority? Frictionless work. Frictionless work happens when leaders eliminate unnecessary obstacles, confusing approvals, outdated processes, and siloed information. Companies that remove these frustrations and distractions so that employees can stay in the flow of work are the next frontier of engagement.
HR’s mantra for the year should be ‘Systems that work and processes that make sense.’
6. HR Must Separate Consultant Noise from Real Strategic Value
With growth returning, vendor activity will surge. Every LinkedIn post, every consultant will claim to have the solution. There will be so much noise in the system, and HR will need to filter it out aggressively. It will be critical to prioritize initiatives that build capability, support growth, and deliver measurable impact.
Trend-chasing will waste time; capability-building will drive value.
A Turning Point Year Requires a Different Kind of HR Partner
2026 will reward organizations that prepare now, those who know which roles they must protect, which capabilities they must accelerate, and what kind of leaders they need to develop.
Evolve HR Solutions does this work we do every day. We help companies find the best talent in the market and improve leadership capabilities. We assist overworked and under-resourced HR leaders in gaining the time to focus on strategic initiatives with the C-suite.
If your organization is gearing up for a stronger 2026, let’s talk.
ABOUT THE AUTHOR
Jeff Lupinacci spent the last 25 years at some of the world's best-known companies, such as Intel Corporation and Kimberly-Clark. His career spans key executive roles such as Chief Learning Officer, Chief Talent Officer, and Chief Integration Officer. After a successful corporate career, Jeff turned his focus to his true passion—serving the overworked and under-resourced HR profession.
Beyond his corporate success, Jeff is a sought-after speaker and thought leader, with his insights featured in leading publications such as CFO Europe, Nikkei Business Magazine, and Baylor Business Review. In addition to his business leadership, Jeff is an adjunct professor at Baylor University, where he teaches Human Capital Management for the Executive MBA program and leads the HR Strategy and Analytics capstone for undergraduates.
Jeff is the best-selling author of The Talent Advantage: A CEO’s Journey to Discover the Value of Talent. He lives in Dallas, Texas, with his wife and two doodles.