Top 6 HR Trends to Follow in 2026
Part of a series | 2026 HR Trends Series
The top HR trends for 2026 range from agentic AI adoption to regulation of AI in employment decisions to HR and IT's increasing interdependence. Here's a preview of six trends signaling what the coming year has in store for leaders across industries and around the globe.
The future of work will be shaped by how thoughtfully organizations integrate technological intelligence with humanity — and how quickly. As artificial intelligence (AI) reshapes the fundamentals of work, HR leaders face a pivotal moment: how to drive innovation while preserving the compassion, trust and fairness that make organizations thrive. ADP's latest trends report reveals that success will hinge on balancing three interconnected forces: people strategy, compliance readiness and technological evolution. Here are the six biggest HR trends to follow in 2026.
1. Agentic AI is emerging as a core HCM capability
While generative AI has dominated headlines, agentic AI is emerging as the next frontier in human capital management (HCM) technology. Unlike generative AI, agentic AI can autonomously think, plan and act to achieve multistep goals.
"Agentic AI unlocks new frontiers of automation, coordinating multistep work and adapting to real-world variability," said Amin Venjara, chief data officer, ADP . "With human oversight, it can deliver scalable automation that's trustworthy, compliant and resilient when conditions change."
Usage varies significantly. According to ADP's 2025 HR trends survey, 48% of large businesses report using agentic AI compared to a quarter of midsized businesses and just 4% of small businesses; however, small business familiarity with the technology is noteworthy, with 48% saying they're somewhat familiar and 21% saying they're familiar.
This evolution is reshaping IT and data management, too. Currently, 79% of IT leaders believe AI agents bring new security challenges, while 55% lack confidence in their deployment guardrails and 48% worry their data foundation isn't set up to get the most out of agentic AI.
2. HR and IT are increasingly reliant upon each other
HR and IT functions are becoming deeply interdependent, with 64% of IT leaders predicting a complete merger within five years. Success requires shared strategic goals, joint governance and platforms that bridge both functions' priorities.
As agentic AI is increasingly adopted across the workforce, HR leaders' success will hinge on IT's expertise in selecting, implementing and managing complex technologies. At the same time, IT will rely on HR to provide insight into how these tools affect people in terms of adoption and human impact.
3. Companies are assessing their skills inventories
Employers are reimagining the traditional job description, adopting skills-based approaches to hiring and development and conducting deeper examinations of what work actually requires. Combined with AI capabilities optimizing task completion, this is enabling a fundamental rethinking of how work is organized, helping leaders match people and tasks with unique strengths and skills while offloading routine work to AI.
"While larger organizations have been the first to engage in strategic workforce planning and skills-based design, small and midsized organizations should also consider doing so at a scale that's realistic for them," said Asal Naraghi, global innovation leader, future of work, ADP.
4. Congress passes tax treatments for certain wages and benefits
Paid leave laws will continue to expand. In 17 states and the District of Columbia, paid sick leave is now required, while 13 states have enacted paid family leave laws. Congress has also changed tax treatment for child-care benefits, paid leave, tips and overtime.
Employers who offer child-care benefits can now deduct 40% of those expenses up to $500,000. The family and medical leave tax credit has been extended another four years and increased from 12.5% to 25%. Beginning in the 2025 tax year, employees will be able to deduct a certain amount of income from qualified overtime and tips when filing their federal income taxes.
5. Countries are regulating the use of AI in employment decisions
The regulatory landscape for 2026 is increasingly complex. As governments grapple with AI's workplace implications, differing approaches are creating challenging requirements for employers, who'll need to balance the use of AI with risk management and human oversight to facilitate compliance. The European Union (EU) AI Act, Colorado's AI Act (effective June 2026) and California's new regulations all govern AI in employment decisions and outline opportunities for risk reduction and involving humans in key decisions.
"Having humans involved in employment decisions that affect people's lives and careers is essential, no matter what tools employers use," said Helena Almeida, vice president and managing counsel, AI legal officer, ADP. "It's how we infuse our broader understanding, experience and care to make wise decisions."
6. AI is creating a mix of experiences for people at work
How employees experience AI in the workplace matters. Experts emphasize framing AI as a tool for augmentation rather than automation and advise against placing undue pressure on employees by setting unrealistic expectations for this still-evolving technology.
"We're still in the early days of understanding AI's full impact," said Jason Delserro, division vice president of human resources, ADP. "Expecting immediate, massive productivity gains risks creating unrealistic pressures on both the technology and, more importantly, your people."
Building the future of work
The trends shaping 2026 demand thoughtful, integrated planning and decisive action. Organizations that drive innovation without deprioritizing people, respond to regulations without sacrificing agility and deploy AI without eroding trust can build resilient workplaces that define competitive advantage throughout the year.
Learn more about the challenges and priorities shaping the future of work and HR. Visit the HR Trends Resource Center.
