The 6 Latest HR Trends to Focus on in 2026

Part of a series | 2026 HR Trends Series

Key takeaways

HR leaders in 2026 are balancing rapid artificial intelligence (AI) adoption with trust, compliance and human-centered decision-making.

Agentic AI and tighter AI regulations are reshaping HR technology, governance and cross-functional collaboration.

Skills-based workforce strategies and employee experience design are becoming core HR capabilities.

Successful organizations treat HR, IT, compliance and people strategy as deeply interconnected.

The top HR trends for 2026 range from agentic AI adoption to increased regulation of AI in employment decisions and tighter collaboration between HR and IT. Together, these trends signal how leaders can prepare for a rapidly evolving future of work.

Visit the 2026 HR Trends site to download the full guidebook, which includes all of the 2026 HR trends and other resources.

As AI reshapes how work gets done, HR leaders face a pivotal moment. Success will depend on blending technological advancement with fairness, trust and human judgment. ADP’s 2026 HR Trends Series highlights how organizations must align people strategy, compliance readiness and technology evolution.

1. Agentic AI is emerging as a core HCM capability

Agentic AI represents the next stage of human capital management (HCM) technology. Unlike generative AI, agentic AI can independently plan, act and adapt to achieve multistep goals.

Adoption varies widely by organization size, but familiarity with agentic AI is growing across the market. This shift is also introducing new data, security and governance challenges.

"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.

Read more about this topic in our guidebook,

AI in HR: Five use cases you should know.

Tips for effective management include:

Assess data readiness and infrastructure before expanding agentic AI use.

Establish data governance and compliance guardrails with human oversight.

Prepare HR and IT teams to jointly manage AI-enabled workflows.

2. HR and IT are increasingly reliant upon each other

HR and IT functions are becoming more interconnected as organizations deploy complex, AI-driven technologies across the workforce. 64% of IT leaders predicting a complete merger within five years.

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.

Tips for effective HR and IT management include:

HR and IT teams should align shared goals and metrics.

Create joint governance models for HR technology and AI.

Identify overlapping responsibilities and address gaps early.

3. Companies are assessing their skills inventories

Organizations are shifting toward skills-based hiring, development and workforce planning. This approach focuses on what work truly requires, rather than relying solely on job titles or credentials. This fundamental rethinking of how work is organized, helps 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.

Tips for strategic workforce planning include:

Inventory existing workforce skills.

Invest in upskilling and reskilling where gaps emerge.

Use external hiring selectively to supplement critical skills.

Learn more from a client who changed their retention strategy: Eliassen Group: Changing the game to retain top talent.

4. Congress passes tax treatments for certain wages and benefits

Paid leave requirements and new tax treatments are expanding across the United States. 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%. As of the 2025 tax year, employees can deduct a certain amount of income from qualified overtime and tips when filing their federal income taxes.

For employers, these shifts increase the need for accurate tracking and compliance-focused HR tools. Consider implementing the following checks to ensure compliance with changing regulations:

Monitor evolving federal and state requirements.

Use HR technology to flag potential compliance issues.

Coordinate HR, payroll and finance processes to ensure alignment and compliance.

5. Countries are regulating the use of AI in employment decisions

Governments are introducing new laws governing how AI can be used in hiring, promotion and workforce management. Regulations differ by region, creating a complex compliance environment.

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."

Across jurisdictions, ethical application and meaningful human involvement remain central to compliance:

Evaluate AI tools for bias and transparency.

Document human oversight in employment decisions.

Adjust policies as regulations evolve across regions.

6. AI is creating a mix of experiences for people at work

Employee experience increasingly depends on how AI is introduced and used, and how employees experience AI in the workplace matters. AI should augment human work rather than replace it outright.

Unrealistic expectations around productivity gains can create pressure for employees and undermine trust. "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."

Tips for employee AI adoption and rollouts

Involve employees early in AI rollouts.

Provide hands-on learning and change support.

Use feedback to refine AI deployment strategies.

Learn how to create positive employee experiences for better business outcomes

Using HR trends to shape the future of work

The HR trends defining 2026 require integrated planning and deliberate action. Organizations that prioritize people, adapt quickly to regulation and deploy AI responsibly are better positioned to build resilient, future-ready workplaces. Learn more about the challenges and priorities shaping the future of work and HR.

Visit the HR Trends Resource Center.

Frequently asked questions (FAQs)

1. What's new in HR trends for 2026?

The six latest HR trends that are emerging in 2026:

Agentic AI is becoming essential.

HR and IT are increasingly interdependent.

Companies are reassessing their skills inventories.

Congress is passing new tax treatments.

Countries are regulating the use of AI in employment decisions.

AI is creating mixed experiences for workers.

2. What can organizations expect for future HR trends?

Use of agentic AI will continue expanding throughout the different facets of the HR role. This requires a combination of worker training to ensure familiarity, along with improved data management, security and governance practices.

3. How do changing regulations impact HR operations?

Changing regulations around the use of AI for hiring, combined with new tax treatments for wages and benefits, increases the risk of noncompliance. To mitigate this risk, teams should leverage a combination of AI to track and identify possible issues, human oversight to verify outputs and comprehensive HR software to create a single source of truth.

4. Where does the human experience fit into HR trends?

HR is inherently human. Where AI offers a new approach to "how" and "what," humans remain the "why." Effectively managing trends means making sure people, not processes, remain the focus.