HR Trends and Priorities You Should Know in 2026

After three decades as an HR leader, global product leader and industry analyst, I’ve learned we have to look ahead. And any goal we set for our organizations must be evaluated. After all, every big project you’ve embraced — like introducing new tech or an exciting, in-demand benefit — moved forward because you made it happen. So let’s see what else you can achieve by setting your sights on the HR trends and priorities of 2026.

As leaders, we know our organizations succeed when we take proactive steps. No business can remain effective by standing still or just reacting to changes that impact it. That’s what inspired Steve Boese and me to host a podcast and manage a network focused on HR tech and strategy. We knew it when we started HR Happy Hour Media Network nearly twenty years ago, and we know it now: In HR, you can never be too prepared.

By adapting your approach to the new year and beyond, you won’t just help your company thrive; you’ll empower yourself to transform within your role and push HR to its maximum potential. Ready to start looking ahead? Let’s dive deep into everything that might come your way.

What’s the difference between an HR trend and a priority?

The difference between a trend and a priority isn’t always clear. To make it at least a little easier, think of trends as patterns to help influence your decisions and planning. For example, trends could refer to rules or concepts — like predictive scheduling laws — that may not impact your business for years down the road. You should still consider trends, but they might not require action quite yet.

Priorities, on the other hand, are specific goals and objectives your organization deems critical. They lend themselves to policies and procedures you can implement and maintain.

And remember, trends can eventually shift into priorities. Take HR tech, for example. As employees become more familiar and comfortable with the convenience of AI-powered apps in their personal lives, they may come to expect the same ease of use from their work software. Exploring options early and finding the right provider to address this current expectation and scale with your workforce’s future needs will help keep your organization on the cutting edge. Outright ignoring this opportunity could lead to a business falling behind its competitors.

In other words, you eventually must act on trends. If you never shift them to priorities, you won’t have any results. It’s vital for us to translate trends that affect our employees into actionable strategies and business priorities.

HR trends for 2026

To kick things off, let’s focus on what’s on the horizon. From hundreds of podcasts and interviews featured on my network this year, as well as a survey conducted by PSB insights and commissioned by Paycom, we identified four trends that will shape our workplaces in 2026.

These topics and focus areas will create challenges — and opportunities — for specific areas of HR and the entire company.

1. AI in the workplace

While each year brings new evolutions for HR, 2026 could mark the field’s biggest change yet. Where it was once speculative, we’re now seeing practical applications for AI and more advanced, automated tech. In doing so, HR professionals hope to break free from their largest obstacles, including:

• manual and repetitive tasks
• employee frustration created by hard-to-use and inconsistent tech
• the constant need to determine how new compliance requirements impact a workforce

The use of this tech won’t just simplify or completely eliminate day-to-day tasks for HR. More importantly, it will set the stage for HR to grow and scale with its organization, as well as enhance HR professionals’ long-term potential.

2. A focus on potential opportunity

As HR sets its sights on growing more capabilities, those working in the department need to let go of the legacy systems and processes that hold them back. According to the PSB survey, 4 in 5 HR and finance professionals say they’ll likely purchase new HR and payroll tech in the coming year to address:

• outdated tech and a negative administrative experience
• limited reporting and analytics
• compliance and security concerns

Keep in mind that this doesn’t necessarily mean organizations will invest in more tech. In fact, certain businesses may opt to simplify their tech stack as much as possible, like with single-database HR software.

3. A sense of optimism

While we’ll likely face new and unexpected challenges through 2026 and beyond, HR professionals are hopeful about their workplaces’ futures. So much so, many surveyed by PSB Insights said their organizations will grow by investing in hiring and keeping their top performers retained and satisfied.

As more organizations adopt AI, we can expect to see the tech support for this effort, too. For example, a recruiter could use AI to help quickly create compliant, unbiased and accurate job descriptions. It can support current employees as well by connecting them directly to the data they need. And greater automation could help ensure that info is always accurate.

4. HR taking a more technical role

The trends we’ve seen so far point to the need for HR to transition into a more tech-driven, higher-reaching role. According to PSB Insights, 82% of HR professionals agree that the department will start to blend its role across IT, analytics and people support in 2026.

That said, organizations shouldn’t wait for HR to shift. They should encourage change now by prioritizing tech upgrades as they relate to:

• development
• performance
• engagement
• and more

The top 5 HR priorities for 2026

We’ve seen some of what lies ahead. Now let’s dive into HR’s specific areas of focus, also informed by the PSB Insights survey that Paycom commissioned. Here’s where HR’s priorities landed.

1. HR tech upgrades and improvements

With 43% of HR and 36% of finance professionals agreeing, it’s clear that upgrading and improving HR technology is the top priority for 2026.

HR’s continued transformation is compelling organizations to transform their HR tech, too. As HR professionals become more strategic and technical, they eliminate and simplify outdated systems and processes, including overly complicated and abundant software that doesn’t reliably automate key tasks.

It’s no secret that every business could benefit from software that scales with its needs. The trick is finding the right software to automate time-consuming processes and prepare an organization for its next level of growth. AI could contribute to this effort, as well as greater automation to pull HR professionals out of the manual weeds, so they can focus on the big picture instead.

2. Employee development, upskilling and reskilling

According to 39% of HR and 33% of finance professionals, ongoing development is the second-highest focus for 2026. While this isn’t a new priority, HR will continue to focus on fostering workforce development as much as possible. Like in 2024 and 2025, employers still face challenges associated with:

• finding qualified candidates
• skills gaps
• compliance risks involving training and certifications
• disengagement and turnover

With the rise of new tech, many in HR should approach this issue with added urgency, especially as HR pros themselves will shift and expand their roles. Upskilling and reskilling shouldn’t be seen as a perk for employees — though it can still be used in that way — but as a necessary part of a future-facing company.

3. Increased AI incorporation into HR

We’ve entered the era of AI in the workplace, considering 37% of HR and 33% of finance professionals make the increased incorporation of the tech our third priority for 2026.

At the end of the day, the HR professionals who uncover more ways to simplify and reduce their manual workload with AI will pull ahead. Doing so could allow them to turn to more important responsibilities, like engagement, retention and more.

The same applies to employees, too. While we don’t know the full extent of how AI will impact our workplaces, we do know that it lends itself to a more convenient experience. In turn, organizations that invest in this level of convenience AI creates could see themselves become an employer of choice among top talent.

4. Enhanced employee experience, engagement and well-being

A great employee experience still holds value in the workplace, which may be why 36% of HR and 32% of finance professionals will still prioritize it in 2026.

When HR professionals take on more technical roles, it doesn’t just have the potential to make their lives easier. After all, our focus is — and will continue to be — on people. This means continuing to identify tech that genuinely simplifies work for employees.

Again, this isn’t necessarily about equipping your workforce with more tech, but instead, better and easier-to-use software. Because when employees have an experience that quickly connects them with the data they need and organizes it in a way that makes sense, it helps eliminate their frustration with tech and primes them to focus on the work your organization hired them to perform.

You can further support this priority by exploring strategies to support your employees’ long-term well-being, such as:

• implementing greater mental health resources
• offering more flexible ways to work
• recognizing team and individual contributions
• establishing mentorships and employee resource groups

Whether it’s through new tech or another initiative, be sure to ask employees about how they’d like to see their experience improve by conducting surveys and gathering feedback.

5. Attracting and retaining talent (for HR) and performance management (for finance)

With the fifth priority, we see a split between HR and finance. Whereas 34% of HR professionals say they’ll prioritize finding and keeping talent, 29% of finance professionals will prioritize performance management.

In 2026, HR will continue to explore ways to improve employer brand and deliver tech and opportunities that inspire employees to stay. To some degree, this is an extension of HR’s fourth priority, with a slight tweak to also focus on recruitment.

On the other hand, finance will focus on enhancing current talent to help employees reach their peak performance. Rather than expanding the workforce, finance sees it as more important to close skills gaps and address new challenges internally. To some extent, HR and finance continue to work on addressing the same issue — meeting and exceeding new organizational goals — but their strategies for tackling it are slightly different.

To that effect, staying on the cutting edge of HR software (and by extension, self-service tech) could help establish your workplace as one that prioritizes employees’ convenience. At the same time, you should look inward to determine what keeps your top performers invested, so you can foster that same experience with new hires from Day 1.

Emerging HR tech to watch in 2026

HR tech isn’t linear. Even as HR professionals move into more technical roles, that doesn’t mean every new tool or piece of software will resonate with every workforce. Keep these up-and-coming technologies in mind as you research and identify options that could enhance your organization.

Employee experience platforms

Above all else, your employees’ tech should be easy to use and meet them at their level. Yes, this should include a fully mobile app that uses AI to instantly connect employees with their data, but you can go beyond data access, too. Ideally, your workforce’s self-service software should also make it easy for them to securely receive workplace communication, newsletters and other announcements. This can help cut through the clutter of email inboxes and help you foster a culture of connection — a factor that’s crucial for keeping people long-term.

Chatbots and conversational AI

We’ve all interacted with chatbots online. (Or, at the very least, we’ve abruptly closed them when they interrupt our retail therapy.) But for workforces, chatbots and conversational AI have the power to address the frequently asked questions that would otherwise fill up an HR professional’s day.

From inquiries about dress codes and other policies to benefits enrollment support and more, conversational AI can review the company documents you authorize it to access, ensuring instant and reliable answers. This doesn’t cut HR out of every question an employee could ask, but it does help free them from many of the most basic.

Digital well-being and mental health apps

Emerging tech doesn’t just refer to HR tech. In fact, as you reevaluate your benefits to help you better retain and attract talent, consider which options offer well-being and mental health apps. For example, health care providers with telehealth and teletherapy options may make it easier for certain employees to access care. Workers in remote, hybrid or mobile environments could find this especially useful, given their roles may make it difficult to make traditional, in-person appointments.

Ethical AI and eliminating bias

While ensuring ethical and equitable practices through AI wasn’t always possible, more recent tech could be used to reinforce them. When AI-powered tech only pulls from a single database, for instance, it prevents the assumptions and misinterpretations that can occur from other AI tools that cite what they can find online. When it comes to hiring, AI can help write and vet job descriptions to ensure consistency, fairness and compliance.

Incorporating augmented reality (AR) and virtual reality (VR) training

While AR- and VR-based training is still experimental for many industries, it could become commonplace as tech continues to evolve. Imagine if a new hire in a retail store could have the same level of virtual training pilots receive through simulations. It could allow them to:

• work through sales objections
• practice zoning and other forms of in-store maintenance
• engage with development materials in a more interactive way
• and more

And while that example only represents one industry, the tech could be used to provide in-depth, “hands-on” training in any number of roles.

How does the right self-service HR software help organizations focus on value-adding initiatives?

Across all workforce generations, people have the power to complete HR tasks themselves. Doing so gives HR the space to focus on the big picture while improving the accuracy of employee data. Self-service tech also helps businesses attract members of Generation Z, who expect a high level of control with all the tools they use.

Empowering people with their data makes your job easier, too! The right self-service software can easily:

• streamline administrative tasks
• free up employees and their managers to focus
• improve data accuracy and accessibility

And the more employees feel comfortable interacting with and managing their data, the more it clears off HR’s and leadership’s plates.

That level of agency doesn’t mean employees need to become experts at navigating software, either. IWant™, Paycom’s command-driven AI engine, pulls from data entered into Paycom’s single database to provide employees with instant, reliable and accurate answers. It even directs users to the exact place to make updates as needed — all at their command and with no navigation required.

With that new freedom in tow, HR pros can turn their focus away from handling routine inquiries and piecing together data. Instead, they have a chance to meaningfully transition into a more tech-driven role that focuses on their organizations’ future rather than routine and manual processes.

Plus, intuitive data access isn’t the only perk of the right self-service software. Take compensation, one of the most important factors for your people. Beti®, Paycom’s tool that lets employees do their own payroll, automatically flags errors, then guides employees to fix them before submission — right in the Paycom app.

Want to close skills gaps and invest in the long-term success of your employees? Paycom’s Performance Management tool makes it easy to:

• conduct reviews
• encourage growth
• inspire your employees to reach their maximum potential

And with Paycom Learning, our intuitive learning management software, you can easily create, deliver and manage training, including over compliance and industry-specific topics.

In 2026, you’ll need to stay agile. Paycom’s Position Management tool is ideal for supporting your workforce’s growth and automating the most tedious parts of managing it. This tool ties titles, salary ranges, workflows and more to positions, making adapting and expanding your organization easier than ever.

While you boost your employees’ well-being with great perks, Paycom’s Benefits Administration software makes it effortless for them to enroll. The tech guides them through their options, giving them a clear understanding of their benefits while also letting them test the effect they have on their pay.

As you grow and expand your team, Paycom’s talent acquisition tools streamline the entire process, from recruiting and hiring to background screening and onboarding. Once you’ve secured your talent, Paycom’s talent management software makes it easier to:

• onboard new hires
• engage and retain employees
• create clear career paths
• help your people find purpose in your organization

2026 HR trends and priorities: FAQ

What’s the biggest HR trend for 2026?

In 2026, the biggest HR trend involves the greater incorporation of AI and automation into the workplace. Ideally, this tech would help free HR professionals from manual work and routine processes, so they can enter a more technical role that focuses on strategy, engagement and their organizations’ future.

How can AI improve HR efficiency?

While we don’t quite know every way AI could enhance HR, we have seen how it can:

• improve and streamline data access
• provide answers to frequently asked employee questions
• free HR to focus on higher-reaching and more strategic initiatives

As organizations incorporate more AI into their operations, we’ll likely find even more applications for the tech to transform HR.

What are effective strategies for employee retention in 2026?

As HR remains focused on retaining and engaging more employees in 2026, many organizations look to support this effort through:

• more advanced and intuitive tech like AI
• upskilling and reskilling opportunities
• holistic physical and mental resources
• flexible ways to work
• and more

Remember, the best strategy for your workforce will depend on employees’ unique needs. Even so, keeping the approaches other organizations take top of mind could help you build, adapt and experiment to find the ideal option for your business.

Why is skills-based hiring gaining traction?

As newer generations have begun to turn away from traditional college education, employees have slowly started to prioritize tangible and applicable skills over degrees. Many factors influence this, including the rising demand for more candidates who can quickly and effectively use emerging tech.

How can self-service HR software reduce administrative workload?

By empowering employees with self-service HR software to easily access and manage their own data, HR professionals can spend less time manually retrieving and entering that same info.

Can AI be biased? How can you eliminate that?

Yes, if the AI relies on unsourced data from the internet, it could unintentionally skew how it perceives and assesses employees and job candidates. Consider using a command-driven AI engine that only pulls from the single, secure database it can access.

How can employers make sure they stay on top of changing HR trends and priorities?

To stay on top of the latest HR trends and priorities, employers should use resources (like this blog post) and gather feedback from their workforce to help guide their organizations into the future.

Can Paycom help scale my business by keeping up with evolving HR technology?

Yes! Paycom’s truly single database deploys AI, automation and other innovative tech to scale with your business and help it grow with confidence in 2026 and beyond.