Wondering how to manage your team in 2026? Workplaces in the UK continue to evolve at pace, with new legislation, shifting employee expectations and technological developments to contend with. Getting your people strategy right is no longer a nice-to-have, it’s essential to growth, resilience and reputation.
Attracting great talent
Attracting and keeping great people should be at the top of your HR agenda for 2026.
If you’re a small to medium business owner, focus on:
· Employer value proposition – define what makes your business a great place to work, beyond just pay. Think about your culture, training and opportunities for your team to progress. Ask your current team what attracted them to the business and what might have made them decline.
· Flexible working – post-COVID, hybrid working, flexible hours and part time options are expected in many roles.
· Faster hiring – streamline your job application process, from advert to onboarding, delays mean that top candidates will go elsewhere. Looking for candidates with a specific skill set? Try niche job boards and social media.
Lifelong learning opportunities
New technology is moving at lightning speed. Upskilling your team isn’t optional, it’s essential. Skills shortages impact productivity and investing in learning improves engagement and retention.
Map the current skills within your team and identify any future needs. Offer your staff targeted training budgets or time off work to upskill themselves. You could partner with local colleges or online platforms to deliver effective training that will benefit your business in the future.
AI is already shaping roles. Small to medium businesses can build huge benefits from smart use of technology but change needs to be managed thoughtfully. You can start by identifying repetitive tasks that could be automated. Avoid fears about AI replacing people by being clear in your communication and upskilling your team to use AI effectively. It’s a tool to enhance work, not replace people.
Health and wellbeing
Employee health and wellbeing impacts attendance, performance and culture. Key themes for 2026 include:
Mental health policies and training for managers
Access to wellbeing resources
Encouraging a healthy work/life balance
Pay, benefits & cost-of-living support
The cost of living in the UK continues to affect everyone. Wage pressures are a real issue, but you can be creative with your benefits to add significant value without incurring excess costs. Consider remote work perks, travel subsidies, flexible hours or cycle-to-work schemes. Businesses should also ensure they have fair and transparent pay structures to avoid any conflict or bad feeling around remuneration.
Staying compliant with HR laws
UK employment law continues to evolve and for SMEs, non-compliance isn’t just costly – it can harm reputation and morale. Key areas to review include:
· Flexible working rights – employees can request flexible working from day one and all requests must be reasonably considered.
· Holiday pay and breaks – make sure calculations are accurate, especially if people have variable hours.
· Wellbeing and safety – health and safety applies to mental health as well as physical.
What you need to do:
· Book a compliance audit to review contracts and policies and ensure you are up to date with all of the 2026 legal changes.
Hybrid work and digital tools
Successful hybrid working often comes down to careful planning. Practical steps include:
Clear hybrid and remote work policies
Digital tools for communication, onboarding, performance tracking and absence management.
Regular check-ins for maintain connection.
Automating routine HR tasks such as timesheets, holiday bookings can really help to free up time for strategic and operational work. Talk to us about HR software to support you with this.
Building a strong culture
Culture is the glue that holds teams together and impacts attraction, retention, performance and customer experience.
If you’re a business leader you need to:
· Define and articulate your core values as a business
· Model the behaviours you want to see across the workplace
· Celebrate the wins – big and small
· Create regular team rituals such as weekly standups or monthly socials that reinforce connection and a shared purpose.
Staying agile in uncertain times
From interest rates to tariffs to consumer demand, rapid economic shifts need HR that can pivot fast. Develop workforce plans for different scenarios such as growth, stagnation, tight budgets or lost clients.
At its core, successful HR in 2026 is about people first. When your team feels valued, supported and engaged, your business gains energy, stability and momentum – no matter what comes next. Need help with your HR strategy? That’s where we come in. We manage and reduce your people issues, so you don’t have to. Get expert HR services for your business by contacting us.
