The Top HR Trends Shaping Work in 2026

Today’s workforce is navigating more change than ever; side hustles, new technology, shifting expectations, and a job market that often feels uncertain. Employees want clear paths forward, and organizations are being asked to rethink how they support, develop, and engage their teams.

As we move toward 2026, businesses that take a proactive, people-first approach will be the ones best prepared for the challenges and opportunities ahead.

Side Hustles, Gigs, and Polywork

Side hustles and polywork to make ends meet are trending for our employees. More employees are pursuing passion projects and entrepreneurial goals. This shift has been fueled not only by the constantly increasing cost of living, but also a desire for independence. While it is great to witness the drive of this highly talented and resourceful workforce, it is presenting challenges for employers.

Here’s the reality: When employees engage in gigs, side hustles, or simply too many outside activities, their focus and creativity can suffer. They may become disengaged at work.

What should business do?

• Leaders need to have conversations about outside work. Praise their efforts to pursue their passion but be honest about the risks of burnout and performance issues. This leads to turnover. When handled tactfully, these conversations will reinforce that you care.

• Evaluate your compensation, workload, and flexibility.

• Consider implementing a conflict of interest policy to ensure the side work doesn’t present any direct competition or conflict with their current role.

• Offer internal growth and career pathing. Consider implementing a mentorship program that pairs mid-level managers with senior leaders to expand their knowledge. Take a look at your organizational chart. Ask if there are clear career path structures in place and use this to create your succession plan.

Side hustles aren’t just a trend, they are a signal. Businesses that adapt with flexibility, empathy, and set clear expectations will keep these side hustling employees productive at work. Early intervention can prevent burnout for them and turnover for you.

AI Strategy is Getting Lost in Translation

The fear of AI replacing jobs is real and when organizations don’t have a clear AI strategy, that uncertainty grows. Employees worry about their future, their skills, and their value. But with the right approach, businesses can turn fear into confidence and curiosity.

• 89% of CEOs expect AI to redefine how their organizations create and capture value over the next year. Source: 2025 CEO Priorities & Perspectives, SHRM, 2025

Here’s a start to building your AI Strategy:

• Communicate the vision and how it supports the business strategy

• Position AI as a co-pilot, not a replacement. Emphasize the AI will not replace them, but those that don’t use AI, may be replaced. This is a tool that will increase productivity and reduce administrative tasks.

• Invest in upskilling. Provide AI learning opportunities and include them as a part of the future of AI in the business.

• Celebrate human skills that AI cannot replace. Leadership, emotional intelligence, and innovation are skills that we will always need a human perspective on.

• Provide ethical guardrails in the way of a policy that defines ethical use of AI and guarding against privacy violations and copyright laws.

The Workplace is Changing-Prepare Your Team

To grow in an uncertain world, employees need more than inspiration, they need the ability to make change a routine part of everyday work. When leaders help their teams see change as something natural and expected, organizations are three times more likely to adopt new initiatives successfully.

Leaders can make change a natural part of daily work by modeling adaptability, communicating clearly, introducing small continuous improvements, empowering teams to experiment, and recognizing progress. When change becomes routine, not disruptive, teams adapt more easily, stay aligned, and help the organization grow even in uncertainty.

Your Best People are Leaving

High performers are leaving at higher rates YoY. According to Workday more than half (57%) of job seekers say they feel stuck in today’s market with no clear next step. Without visible growth paths and clear opportunities, that frustration will spread fast.

• Create a vision on their career growth: Provide clear paths and talk about promotion criteria in one on ones, not just when it's review time.

• Improve Internal Mobility: Establish processes that encourage employees to move, such as removing any unnecessary educational barriers. Provide stretch opportunities to broaden experience.

• Build Trust through Communication: Share updates about changes in advance. Hold town hall meetings and have regular one on ones with all of your team.

• Establish a Mentorship Program: Leverage the talent the business has by pairing up leaders with staff members to teach them new things.

• Model the Values of the Organization- Top Down: Employees need to know that the leaders are not just asking them do as they say. They need to be walking the walk. Be humble, curious, and transparent.

  
  

People aren’t asking for the impossible they’re asking for direction, opportunity, and leaders who support their potential. When companies deliver that, they unlock engagement and loyalty that no benefit package can buy.

Taking the Next Step with Expert Support

If you’re needing help getting ready for 2026, consider partnering with experts who specialize in HR strategies. NextGen HR Strategies, PLLC can help you prepare a customized plan for AI, Talent Management, and employee policies that fits your business goals and culture.

Crafting an effective employee handbook is a journey, but together we can create a clear, consistent guide that strengthens your culture and sets your team up for success.