HR leaders are being urged to reimagine hiring, talent management and the role of technology as 2026 approaches, with expert observers predicting that skills, artificial intelligence and evolving HR capability will set the tone for the year ahead.
The transformation underway goes beyond job titles or routine automation, instead raising fundamental questions about how people, skills and culture will drive business performance in a fast-changing economy.
Across the UK, organisations are already feeling the pressure to adapt. Demands for new technical skills, pressure on recruitment budgets and the ongoing debate about hybrid working are converging just as AI-driven change accelerates. The latest forecasts suggest that HR teams will be central to shaping how organisations adapt and thrive, but will also need to develop new capabilities themselves.
Ciara Harrington, chief people officer at talent management firm Skillsoft, three trends will stand out for HR leaders in 2026: a move from job titles to skills-based models, the practical realities of human-AI collaboration and the evolution of HR itself to blend empathy, data and technical know-how.
Skills will become the real currency of the workplace
Harrington told HRreview that the days of rigid job architectures were numbered. Companies, she said, were moving rapidly from traditional hierarchies to more flexible, skills-based models for hiring, growth and mobility.
“In the past, organisations have relied on fixed job architectures that define people by their roles, levels and functions. Every decision — from compensation to performance expectations — has been tied to these traditional structures. But as we look to the future, it’s clear that skills are becoming the new currency of work. Instead of asking ‘What is your job title?’, we’ll be asking ‘What skills do you bring, and how proficient are you in them?’”
Harrington said this approach will see talent decisions — hiring, promotions, project assignments — rooted in demonstrated skills rather than hierarchy. “Talent decisions… will be based on the actual skills people possess and their ability to apply them, rather than their place in a hierarchy.”
However, the move to a skills-based workforce will not be instant. Harrington pointed out that employers should not expect to simply discard old structures overnight.
“This transformation will not happen overnight — organisations cannot simply discard existing job architectures and instantly become skills-based. Instead, the shift requires a gradual, iterative approach: starting small, integrating skills thinking into everyday processes like hiring and performance reviews, and piloting new methods to learn what works.”
Human and AI collaboration will define the HR experience
One of the most immediate challenges facing HR teams is the growing influence of artificial intelligence in daily processes. Harrington argued that AI will increasingly handle routine and administrative work, but the essential task for leaders will be to preserve the human connection that underpins a positive workplace culture.
“As AI takes on more of the routine and administrative work in HR, leaders are faced with a critical question: Where do we intentionally preserve the human touch? It’s not just about making processes faster or more efficient—it’s about making conscious choices to ensure employees continue to feel connected, supported and valued.”
Harrington used onboarding as an example, explaining that, “While a bot might handle onboarding logistics or answer basic benefits questions, it’s the personal welcome, the culture-building conversations and the ongoing support from HR business partners that truly shape the employee experience.”
She suggested that the most successful organisations will use automation to streamline processes while keeping people “seen and heard.” She added, “The companies that thrive will be those that use AI to free up HR’s time for what matters most—building relationships, driving culture and supporting people through change.”
HR itself must evolve to meet the new demands
As workplace challenges become more complex, Harrington stressed the need for HR professionals to expand their own skills and take on new responsibilities. “HR has always excelled at communication and influence, but changing needs are exposing vulnerabilities with technical skills, analytics and systems thinking. The ability to interpret data, improve processes and think critically is what will set HR apart and enable us to drive real value in a world where AI and automation are reshaping how work gets done.”
She advised that upskilling and reskilling should be a top priority, not just for the workforce but for HR teams themselves.
“We must continue to evolve like the landscape around us. Next year, and beyond, I believe the most successful HR teams will be those that embrace this evolution, combining our people-centric strengths with a deep understanding of technology and analytics to lead the business forward. We’ll need to rethink the profile of a successful HR professional, investing in upskilling and reskilling our teams so we can deliver insights, drive strategy and prove our impact in the boardroom.”
Harrington summed up the outlook for HR as a blend of empathy and data-driven strategy. “The future of HR is about being both empathetic and data-driven, and those who make this change will be the ones who truly transform their organisations.”
