HR and Talent Acquisition Trends for 2026

A strategic guide for HR and TA leaders

Contents

Foreward

The past few years have fundamentally reshaped how organisations think about people, work and value creation. As we move into 2026, HR and Talent Acquisition leaders are no longer being asked simply to respond to change, but to provide clarity, direction and confidence in an increasingly complex environment.

At Talent Insight Group, we work with organisations navigating skills shortages, demographic shifts, evolving candidate expectations and rapid technological advancement. What we see consistently is that success does not come from chasing every new trend, but from making informed, intentional decisions grounded in evidence.

This guide brings together our research-led insight into the most significant HR and TA trends shaping the year ahead. It is designed to help leaders pause, reflect and prioritise —to understand not just what is changing, but why it matters and where to focus.

Our aim is simple: to equip HR and TA leaders with the insights they need to reduce risk, unlock opportunity, and build workforces that are resilient, adaptable, and fit for the future.

Glen Hall, Chairman

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From Reaction to Strategy

As HR and Talent Acquisition leaders look towards 2026, the operating environment is defined less by crisis and more by complexity. The volatility of the early 2020s has given way to a cooler labour market, tighter budgets, and heightened scrutiny of value, productivity, and return on investment. In this context, the role of HR and TA is evolving from delivery partner to strategic advisor.

Strategy, at its core, is about focus. For HR and TA leaders, this means making deliberate decisions about where to invest limited time, budget and capability — and where to stop. In 2026, successful people strategies will balance efficiency with empathy, technology with trust, and short-term pressures with long-term resilience.

This guide explores the key HR and TA trends shaping the year ahead, drawing on Talent Insight Group’s research and insight to provide context, challenge assumptions and highlight practical routes forward. Each section introduces a critical topic and provides signposts to deeper guidance for leaders looking to take action.

“The essence of strategy is choosing what not to do.”

Michael Porter, Businessman and Harvard Business School Professor

 

Artificial Intelligence in Talent Acquisition

From Experimentation to Advantage

AI is no longer a future consideration for TA teams – it is a present reality. In 2026, the question is no longer whether AI should be used in recruitment, but how it can be deployed responsibly, effectively and at scale.

What’s changing in 2026 is the expectation of value. Leaders are moving beyond pilots and point solutions to asking how AI can genuinely improve hiring outcomes, candidate experience and team capacity.

Many organisations already use automation to streamline administrative tasks, but AI is opening new opportunities across the recruitment lifecycle—from candidate attraction and screening to engagement and talent rediscovery. This is particularly significant as TA teams face a widening gap between demand and capacity.

AI offers a potential solution, but it also introduces risk. Poorly implemented tools can undermine trust, introduce bias and potentially damage the employer brand. As a result, 2026 will see a shift away from experimentation toward governance, capability building, and integration.

 

In 2026, success will depend on:

• Understanding the difference between AI, automation and machine learning

• Identifying where AI genuinely adds value versus where it adds risk

• Building confidence and capability within TA teams

 

What this means for TA Leaders

• Prioritise high-impact, low-risk use cases

• Maintain human accountability in decision-making

• Build AI literacy across TA teams

 

Unlock the whole picture, including the potential risks and benefits, and practical recommendations to guide safe implementation in your organisation, in our in-depth guide to AI in Talent Acquisition.

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66% of TA teams expect hiring demand to increase while team sizes stay the same or shrink

Talent Transformation

 

Building an Agile, Future-Ready Workforce

In 2026, organisations are increasingly recognising that recruitment alone cannot solve systemic talent challenges. Skill shortages, digital transformation and economic uncertainty are exposing the limitations of traditional workforce models.

Talent transformation represents a fundamental shift in how organisations think about talent — moving beyond hiring and retention towards the development, deployment and optimisation of skills. This requires closer alignment between HR, TA, L&D and internal communications, supported by strong leadership sponsorship.

 

Rather than relying solely on external hiring, organisations are:

• Investing in internal talent development

• Prioritising reskilling and upskilling

• Embedding continuous workforce planning

 

The reward is a more agile and ‘antifragile’ workforce – one that can adapt and create value even in uncertain conditions.

 

Get the full story and understand why recruitment alone fails — and how talent transformation builds resilient, future-ready workforces.

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Organisations that place talent at the centre of business strategy are more resilient during economic downturns and better positioned for long-term growth.

Unlocking the Value of the Ageing Workforce

Demographic change is reshaping labour markets across the UK and globally. As life expectancy rises and birth rates fall, the average age of the workforce continues to increase. By 2050, more than 2.1 billion people globally will be aged 60 or over (WHO).

For employers, this trend presents both risk and opportunity. Without intervention, organisations face increased retirements, loss of institutional knowledge and growing skills gaps. Yet older workers also represent a highly experienced and often underutilised talent pool.

In 2026, organisations that fail to plan for an ageing workforce risk losing critical skills, decreasing productivity, and fragile succession pipelines. Those that succeed have the ability to retain experience, improve knowledge transfer and build on existing skillsets.

This challenge is particularly acute in sectors such as manufacturing, utilities, healthcare and education – but no industry is immune.

Learn how to retain experience, protect skills, and future-proof your workforce as demographics shift with our in-depth guide.

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According to AARP International, 41% of the workers aged 45 or older who have not participated in any job training in the last five years want to do so. But this need is not being met; Mercer’s Global Talent Trends Study suggests that only 56% of people born between 1946 and 1964 trust their organisation to keep their skills up to date (versus 72% of those born between 1981 and 2012).

Mercer: Investing in age-inclusive workforces to navigate demographic shifts

Employee Experience

Employee experience, or EX, is fast becoming a strategic differentiator. As the tension between employer demands and employee expectations continues to build, the limits of one-size-fits-all engagement models have become increasingly apparent. As a result, EX has emerged as a strategic priority for organisations grappling with shifting expectations around flexibility, purpose and belonging.

The shift is from top-down engagement initiatives to personalised, experience-led approaches built on listening, action and communication. The focus on EX creates space for the employee-employer relationship to develop a model of work that works for both the individual and the organisation.

Effective EX strategies focus on:

• The full employee lifecycle

• Recognition and purpose

• Alignment between stated values and lived experience

 

Discover how employee experience outperforms engagement — and how to build it across the lifecycle in our complete guide. 

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Employees in organisations that lead on Employee Experience show 40% higher discretionary effort.

 

Succession Planning

Preparing for Leadership Volatilaty 

Succession planning remains one of the most underdeveloped areas of talent strategy – and one of the most critical. In 2026, succession planning must extend beyond the C-suite to include critical roles and specialist expertise across the organisation. When done well, it reduces risk, improves engagement, and protects organisational knowledge. It is also inseparable from ageing workforce dynamics and skills planning.

Discover why succession planning should extend beyond leadership to protect skills, continuity and organisational knowledge.

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60% of organisations have no CEO succession plan 

Employee Value Proposition

Competing beyond salary

Attracting the best talent remains a critical challenge, even as labour markets cool. Today’s candidates are more selective, more values-driven and more likely to take a holistic view of the total benefits package when considering potential employers. A strong Employee Value Proposition (EVP) helps organisations attract talent that best fits their requirements and business values, by highlighting where candidate motivations intersect with the driving forces behind a business’s objectives and what it offers its employees.

A compelling EVP balances reward, flexibility, development, purpose and belonging. It must also be authentic and consistently experienced. Finding and promoting this sweet spot strengthens attraction while also improving retention, engagement, and workforce stability.

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Superior talent can be up to 8x more effective

Looking Ahead

The defining challenge of 2026 is not a lack of ideas, but a lack of focus. HR and TA leaders who succeed will be those who align strategy, insight and execution – using data intelligently while keeping people at the centre.

It’s no small challenge to keep up to speed with this changing landscape, even multinational corporates with dedicated functions can struggle to stay ahead of the curve, but that’s where we can help.

Ready to futureproof your workforce?

We partner with businesses to complement in-house resources and expand capabilities through expert support across talent acquisition, talent intelligence and strategic workforce planning, including pipelining and succession planning for business-critical roles.

Contact us for a no-obligation conversation and explore how we can support you with the insight and intelligence to drive growth and minimise risk in your organisation.

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