Another year is over, and what a challenging year it was for businesses. With increases to employer’s National Insurance, changes to sexual harassment laws and the Employment Rights Bill reforms edging closer, 2025 presented HR professionals and managers with a range of complex issues to address.
So what does 2026 have in store for us?
In our updated guide, we’ll explore our top priorities you and your HR team should be focusing on in 2026. Every organisation is different, with varied objectives, goals and challenges, so some priorities may be more important to you than others. With our overview of the top HR trends for next year, you can pick the ones that resonate most with your company culture and goals to focus your efforts on making change within your organisation.
Why is it important to create a People Plan?
The significance of a well-structured ‘People Plan’ cannot be overstated. A people plan, HR priorities, HR agenda or simply ‘HR objectives’ is a guiding framework that aligns an organisation’s human resources strategy with its overall business objectives.
It looks at the needs of your organisation holistically and considers the strategy needed to support the business in reaching its wider goals through your people.
A people plan demonstrates commitment to the development and wellbeing of your workforce, as well as how the workforce will deliver the goals of the organisation.
One of the main reasons for investing time into the production of a people plan is to create clear direction for leaders. By defining who is accountable for areas within the people plan, decision-making processes will be streamlined, supporting the achievement of objectives.
The development of a people plan will also create transparency in an organisation. This transparency cultivates a shared sense of purpose and as a result, drives positive results from the workforce as a whole.
Strategic HR Priorities in 2026
1. Dignity at Work training to go further with workplace sexual harassment prevention
The Worker Protection (Amendment of Equality Act 2010) Act 2023 came into effect in October 2024, requiring employers to take ‘reasonable steps’ to prevent sexual harassment in the workplace.
You should have done so by now, but if you haven’t, your next task should be to review your harassment and bullying policies to ensure they comply with the Worker Protection Act. Your reporting procedures should be clear and accessible. It’s also worth ensuring your social media, IT and lone working policies are up-to-date.
While the WPA outlines employers’ legal responsibilities regarding workplace sexual harassment prevention, there’s much more that you can do to help every member of your team feel respected and included. And it starts with Dignity at Work training.
Lea Marsden Harvey, our People Partnering Manager, explains that Dignity at Work training goes beyond compliance. It focuses on building a culture of respect, fairness and inclusion by helping employees understand what appropriate behaviour looks like and how to challenge behaviour that crosses the line.
“The real value is in creating a workplace people actually want to work. When your people know they’ll be treated fairly and with dignity, it supports psychological safety and prevents issues from escalating,” says Lea.
These sessions create space for open conversation about respect, bias and boundaries, helping people recognise and address unacceptable conduct early before it escalates into formal complaints and employment tribunals.
For managers and leaders, the training is an opportunity to learn how to handle reports of inappropriate behaviour sensitively and consistently. It also reinforces their accountability for setting the tone and leading by example, which is essential under the Worker Protection Act.
When run regularly, Dignity at Work sessions support ongoing cultural change, making sexual harassment prevention a shared responsibility across all levels of your organisation. They encourage employees to speak up, equip managers to respond effectively, and demonstrate that your organisation takes its duty to protect staff seriously.
Embedding Dignity at Work training within your wider approach to equality and inclusion not only reduces legal and reputational risk, but it also helps create a psychologically safe environment where people feel valued, empowered and supported to do their best work.
“We’re seeing a huge rise in demand for Dignity at Work training – and we couldn’t be more pleased. Policies set expectations, but training shapes day-to-day behaviour. It’s really important to show people what respectful conduct looks like, so everyone is clear.
Lea Marsden Harvey, People Partnering Manager
Good training gives everyone the confidence to challenge behaviour that isn’t right and helps prevent issues from growing into something formal. It’s one of the simplest ways to build a workplace people genuinely want to be part of.”
2. Construct a flexible benefits package
It’s common knowledge by now that a good benefits package is one of the best ways to attract and retain top talent. But one size usually doesn’t fit all, meaning that some employees might not get as much out of certain benefits you offer. That’s why over the last couple of years, we’ve seen flexible benefits packages increasing in popularity.
Flexible benefits packages are exactly that – flexible. They allow your employees to pick and choose their benefits based on their needs and preferences. For example, a free or discounted gym membership might be fantastic for someone who has the time to go, whereas a working parent may benefit more from childcare vouchers or health insurance that they can add their family to.
Recent research found that 68% of employees would like to have more flexibility with their benefits and 23% were unsatisfied with their existing benefits provision, so offering some form of flexible benefits package is well worth it for improving your employer brand and increasing employee engagement. Additionally, there can be cost savings, because you don’t pay for benefits that employees won’t use.
How you operate your flexible benefits package may be down to what works for you as an organisation. Gather feedback from your employees to see which benefits they use at the moment, or what they would like to have. Assess your benefits budget and identify where you may be wasting spend.
Then, consider which flexible benefits option works best for your business:
- Allocate each employee a specific amount to spend on benefits
- Give employees the option to reduce or increase their salary to purchase benefits
- Offer a fully flexible benefits package where all benefits are optional
- Keep a core set of benefits alongside a group of optional benefits to choose from
Which kind of package works for you will depend on your budget, the number of employees you have and the type of benefits that matter most to them.
“A flexible benefits package shows that you see your people as individuals, not a one-size-fits-all group. Different stages of life mean different needs, and when you give employees choice, the benefits become far more meaningful.
Leah Winfield, Senior Talent & Culture Specialist
Listening to your team and really shaping your offer around what they actually use boosts engagement. It can often save money, too. I believe offering flexible benefits is one of the easiest ways to strengthen your employer brand.”
3. Invest in learning and development
In an increasingly uncertain economy, it can be tempting to cut back on things like learning and development when budgets are already stretched. We’ve also seen lots of redundancies in the last 12 months, with the UK’s unemployment rate reaching a nearly five-year high in September 2025.
But before going down the road of redundancies, it may be more cost-effective to invest in your team’s professional development, keeping them at your organisation for longer and saving you recruitment costs. By training your staff, you’ll maximise what you get out of them, so you don’t need to hire new team members as quickly.
Review your learning and development strategy and conduct a learning needs analysis so you can understand the skills and capabilities your team will need to meet future business goals.
As well as training that helps your employees improve their job-specific skills, consider offering training on soft skills, too. Training on skills like teamwork, communication and problem-solving will influence how your employees work and interact with others. When we understand those we work with better, we produce better results – so it’s well worth adding this type of training into your learning and development plan.
Plus, employees who are offered training and development opportunities feel more valued and tend to stay in their roles for longer, helping you reduce turnover, improve your company culture and increase performance. (Win-win, right?)
“When money is tight, people development is often one of the first areas we see receive a cut in budget allocation. But this can breed a false economy. What organisations should consider is bolstering their development budget during challenging times to build skills inhouse, rather than having to recruit them into the business (which is often at a higher salary).
Lucy Fitzgerald, CEO & Founder
Plus, when you grow your people, you reduce turnover. Which means you cut down on recruitment costs. It’s as simple as that.”
4. Integrate AI across a multi-generational workforce
If you’ve not already started using AI in your workplace, the chances are that you will in the next year. AI adoption will continue accelerating in 2026, but not everyone in your organisation will feel equally confident using it. Digital literacy varies widely across age groups and roles, so your approach needs to support the whole workforce.
Start by recognising that employees will have different needs. Some will want structured, step-by-step training, while others prefer to explore new tools independently but may need guidance on responsible use. Tailoring your approach ensures no one is left behind and helps prevent misuse.
Practical, role-specific training is key. Offer short workshops showing how AI can support everyday tasks, and provide optional deep-dive sessions for those who want to advance their skills further. Make learning ongoing by linking to quick-reference guides, video walk-throughs and FAQs. Google has some great AI resources that are suitable for everyone, but there are plenty of other courses around.
You’ll also need clear rules on what ‘good AI use’ looks like. Update or create an AI usage policy covering privacy, GDPR compliance, accuracy checks and when AI should not be used. This helps set expectations consistently across all levels of your organisation.
Encourage a culture of shared learning where employees can support one another. Cross-generational mentoring can be especially valuable, pairing digital confidence with contextual knowledge. You could also establish ‘AI champions’ across your teams to help embed good practice.
Finally, check that any AI tools you use are accessible to all employees. Consider compatibility with assistive technologies and seek feedback so you can adapt where you need to.
“AI works best when everyone feels confident using it, and that means recognising that people learn in different ways. Some will jump straight in, others will want more hands-on support, and your approach needs to reflect that.
Monica Wray, Managing Director
What we need to remember is AI is not a phase. It’s not going anywhere. So, we either embrace it (and help our teams to do so, too). Or risk falling behind. Creating accessible training on AI, which supports differences between generations and learning styles, could not be more important right now.”
5. Implement a mental health days policy
The world seems more and more uncertain these days, and that can have an impact on everyone’s mental health. Nearly 10% of adults took time off for mental health reasons in 2024, equating to 20.5 million sick days. That’s why we recommend that our clients implement a mental health days policy in addition to their standard sickness absence policy.
Mental health days, often called ‘personal days’ or ‘duvet days’ are when you take time off work to protect your mental health. As part of a holistic wellbeing strategy, they can be useful in preventing your employees from being signed off work with stress or burnout, and can keep those with long-term mental illnesses in work.
There are plenty of benefits of implementing a mental health days policy for employees, including:
- Reduces and prevents stress and burnout
- Improves sleep quality
- Allows time to process emotions
- Promotes relaxation
But there are also lots of benefits to employers:
- Reduces absence, including long-term sickness absence
- Increases staff retention
- Improves productivity
- Increases morale
Mental health days might seem like an unnecessary expense, as they are usually paid as part of your company sick pay policy, but they can actually help reduce your sick pay spend.
Poor mental wellbeing costs employers in the UK an estimated £42-45 billion annually through presenteeism, sickness absence and staff turnover, so giving your employees time to restore their mental wellbeing could save you money in the long term.
If you decide to create a mental health leave policy, make sure that it’s clear and accessible. It should detail what employees should use mental health days for, how they work and what impact they can have on things like KPIs, bonuses, annual leave or sick leave.
Once you’ve created the policy, it’s worth holding a quick meeting explaining how it works and to remind your team about any other wellbeing measures you have available. You should also train your managers in skills like active listening and how to spot signs of poor mental health.
“Mental Health Days are not a statutory entitlement. And, they won’t be right for every organisation. But, if you are considering your stance on mental health days in 2026 – getting your policy and approach right is the place to start. We see time and time again, when employers are supportive and transparent when it comes to mental health, it gives employees permission to take care of themselves early rather than pushing through to burnout.
Emily Hunter, Head of Employee Relations
It’s a small policy change that sends a big message about trust and wellbeing.”
6. Create a purposeful succession planning process
Many organisations only realise they need succession planning when a key employee resigns unexpectedly, leaving a critical skills gap and causing leaders to scramble to recruit. And it can send a business spiralling – one study found there was an average of an 18% decrease in operating profits following unexpected departures.
Despite unemployment rising, hiring is still challenging across the UK, so 2026 is the year to take a proactive approach to succession planning.
Succession planning ensures that essential roles are never left vacant or filled by unsuitable candidates in a rush to plug the gap. It identifies the roles that are most critical to business continuity, pinpoints employees with the potential to step into them, and provides structured development so they’re ready when the time comes.
But the roles don’t just have to be senior leadership ones. Any role that would cause disruption, financial loss or operational delays if left unfilled should feature in your succession plan. Start by aligning your succession planning with your wider business strategy so you can identify the future skills, capabilities and behaviours your organisation will need.
Once you’ve identified your critical roles, look for employees with the potential to grow into them. This may involve performance data, capability assessments and input from line managers. But make sure you don’t rely solely on past performance. Future roles may demand new skills, particularly with continuing advances in technology, automation and AI.
Development should be intentional and well-supported. Offer opportunities such as project leadership, mentoring, shadowing and job rotations and exposure to strategic decision-making as well as formal training. The aim is to ensure that, when a vacancy arises, your successor can step in confidently and competently.
A strong succession planning process builds stability, protects against recruitment challenges and strengthens long-term leadership capability. Communicate openly with potential successors so expectations are clear, review your plan regularly, and track outcomes, such as the percentage of critical roles filled internally or the retention of high-potential employees.
So, which priorities are you going to add to your people plan for 2026? Whether you choose to improve the benefits you offer to your employees, invest in their training and development or take control of your succession planning, your plans should align with your strategic business objectives.
“Succession planning is one of those that organisations know they should be doing, but it only gets attention when someone hands in their notice.
Vicki Ellis, Head of People Partnering
And, succession planning isn’t just about protecting the organisation – it’s also about showing your people that you believe in them. When you spot potential in employees and give them opportunities to grow, you build loyalty in a way no benefits package or policy ever could. And, when a key role suddenly becomes vacant, you’ve already got someone you trust ready to step in, rather than going out to market.
7. Outsourcing HR services
Is 2026 the year that your organisation has become so successful that it’s time to build an HR team? Or perhaps you’ll need a temporary HR manager while yours is on leave. Whatever the reason, if you will need more HR support in 2025, it may be worth considering adding outsourced HR services to your people plan.
Outsourcing HR can help you plug gaps in your HR team and free up leaders’ time to do more creative work. As your team grows, HR takes up more and more of your managers’ time, so outsourcing some or all of your HR functions can be a key strategic move for your company.
Key benefits of outsourcing HR services include:
- Get access to expert knowledge: You’ll have access to a whole team with specialised knowledge
- Reduce costs: It’s usually more cost-effective to outsource your HR services in small and medium-sized businesses
- Minimise risk: Get support for high-risk activities like managing grievances, disciplinaries and dismissals
- Stay compliant: Keep up-to-date with the latest legislation and get advice as soon as you need to make policy changes
If this is on your people plan for next year, give us a call. Whether you need ongoing support with our monthly HR retainer or just ad hoc support to fill a gap fast, we can handle it.
Tips for creating your 2026 people plan
After organisations define their 2026 HR priorities – what comes next?
Here are some of our tips for drafting and launching your people plan and HR priorities for this year.
Alignment with organisational goals
When putting together a people plan, leaders should continually ask themselves ‘why?’. Every objective relating to your HR priorities should link back to wider strategic objectives for the business. This will help the workforce understand the importance of the goals.
Both long and short-term organisational objectives should be considered and the HR priorities should outline how, from a people perspective, the objective can aide the achievement of the wider goal. For instance, if a business goal for 2025 is for growth, an HR objective to support that could be recruitment and retention-related.
Flexibility
Design a people plan setting out your HR priorities with adaptability in mind, acknowledging that unforeseen changes are likely. Building resilience into the plan allows organisations to pivot swiftly, ensuring that the workforce remains agile and responsive.
Inclusivity
When setting your HR priorities, be mindful that your audience and the subject of your people plan is every single employee, be that full time employees or seasonal staff. Additionally, individuals from all backgrounds should be considered when creating goals that impact the existing workforce.
Clarity
Be simple and clear when outlining HR priorities. Avoid using business jargon or references leadership might only understand. Then, communicate the goals with transparency. Communication is pivotal in executing any people plan successfully.
Metrics
Build ways to continually measure and monitor whether your organisation is meeting its people goals. Setting a goal without knowing whether it has been met is not useful or beneficial. These metrics can be evaluated periodically at points throughout the year to understand what targets may need additional focus and resources.
How we can help
Our team of experienced people professionals can help take the guesswork out of strategic planning by partnering with your organisation to define your HR priorities and what should be on your agenda for 2026. Call us on 0330 223 5253 or email us at office@fitzgeraldhr.co.uk today.
