HR & Leadership in 2026: People, Purpose & Performance

2026 isn’t about new trends; it’s about how strategically organisations manage their people. HR has moved to a business-critical partner, and expectations have never been higher.

Here’s what Birch-HR thinks should be on the radar this year:

1. AI in HR = Governance, Not Novelty

Using AI is easy. Using it ethically, legally, with robust understanding and transparently is the real challenge.

2. Employment Law & People Risk

Flexible working, fair pay, wellbeing and culture are under sharper focus. Inconsistent people management is now a commercial risk. This risk can be effectively minimised by confident, experienced, and knowledgeable CIPD HR support.

3. Leadership Capability Gaps

Under-skilled managers threaten engagement and retention. Coaching and mentoring are powerful levers to build confident leaders, embed culture, and accelerate development.

4. Wellbeing as Infrastructure

Burnout isn’t an individual issue; it’s a leadership and systems issue. Mentoring and structured support help employees feel seen, heard, and accountable.

5. Talent Retention in a Mobile Market

Skilled employees remain mobile where trust and leadership are lacking. Retention in 2026 must focus on:

• Clear progression and development pathways.
• Honest, timely career conversations (including lateral moves).
• Purpose and flexibility outweighing pay alone.

The Strategic Role of HR

HR must be courageous—influencing decisions, interpreting data, and challenging leadership to get the best outcomes. People strategy is business strategy.