Preparing Your People and Business for 2026: Key HR Priorities for the Year Ahead

18 December 2025

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As the year draws to a close, many businesses start to slow down. Teams reflect on what’s worked, what hasn’t, and what they want to do differently next year. While it can be tempting to switch off until January, this period is actually one of the most valuable times to think strategically about your people.

The organisations that enter the new year with confidence are the ones who have taken time to plan, review, and prepare. And, as we look towards 2026, HR continues to play a central role in business resilience, performance, and culture.

Here are the key HR priorities employers should be considering as they plan for the year ahead.

Staying ahead of employment law and compliance

Employment law continues to evolve at pace, and recent reforms have shown just how quickly expectations on employers can change.

Waiting until a problem arises is rarely the most effective approach. Now is the time to review contracts, policies, and procedures to ensure they remain up to date and fit for purpose. This includes checking that documentation reflects how people actually work, particularly where hybrid working, flexibility, or changes to roles have become the norm.

Remember, proactive compliance doesn’t just reduce legal risk, it also creates clarity and consistency. When expectations are clear, managers feel more confident and employees feel more secure.

Developing confident, capable leaders

One of the most consistent challenges we see is the pressure placed on managers. Many are promoted because they’re technically strong, not because they’ve been given the tools to manage people.

As workplaces become more complex, leadership capability matters more than ever. Managing performance, navigating wellbeing conversations, handling conflict, and supporting diverse teams all require emotional intelligence and confidence.

Investing in leadership development isn’t about perfection. It’s about equipping managers to have better conversations, make fair decisions, and lead with consistency. Businesses that prioritise this see stronger engagement, better retention, and fewer people issues escalating unnecessarily.

Managing a multi-generational workforce

Workplaces are more generationally diverse than ever. Gen Z is now firmly embedded in the workforce, and Generation Alpha is already on the horizon.

Different generations often bring different expectations around communication, feedback, flexibility, and purpose. What motivates one group may not resonate with another, and applying a one-size-fits-all leadership style can quickly create disengagement.

This doesn’t mean lowering standards or constantly changing direction. It means understanding your workforce and adapting how you lead, communicate, and recruit. Businesses that embrace this flexibility will be far better placed to attract and retain talent over the coming years.

Wellbeing as a business priority

Wellbeing has moved well beyond being a nice to have, it’s now an essential in every workplace. Stress, burnout, and mental health challenges remain some of the biggest drivers of absence, conflict, and turnover.

As we plan for 2026, it’s important to shift the focus from wellbeing initiatives to workplace design. Policies alone don’t create healthy workplaces. Culture, workload, management behaviour, and psychological safety play a much bigger role.

Checking in with teams, supporting managers to spot early signs of stress, and creating an environment where people feel able to speak up all make a tangible difference. Small, consistent actions often have a greater impact than large, one-off gestures.

Reviewing policies through a modern lens

Many businesses have policies that technically tick the box, but don’t reflect how the organisation actually operates. Over time, policies can become outdated, overly complex, or difficult for managers to apply confidently.

The end of the year is a good opportunity to ask some simple questions:

  • Are our policies clear and practical?
  • Do managers understand how to use them?
  • Do they reflect our values and working practices?

Well-written, well-communicated policies protect the business, but they also support fairness and trust. When policies are easy to understand, people are more likely to engage with them.

Workforce planning and retention

Recruitment remains challenging for many sectors, making retention more important than ever. Workforce planning isn’t just about filling vacancies, it’s about understanding skills gaps, succession risks, and development opportunities.

Employees are more likely to stay where they feel valued, supported, and able to see a future. Clear progression pathways, regular feedback, and meaningful development conversations all contribute to retention.

Looking ahead to 2026, businesses should be thinking about who their key people are, what support they need, and where future capability gaps might sit.

Using insight, not instinct, to plan

Effective HR planning is rooted in understanding what’s really happening within the business. Absence trends, turnover data, employee feedback, and recurring issues all provide valuable insight.

Rather than repeating the same challenges year after year, this information can help businesses make informed decisions and prioritise what truly matters. Listening to employees and learning from the year just gone is one of the most powerful ways to strengthen your people strategy.

Looking ahead with clarity and confidence

Preparing for 2026 isn’t about predicting every challenge ahead. It’s about creating strong foundations so your business can respond with confidence.

Organisations that invest time in reviewing, reflecting, and planning for their people are better placed to navigate change, reduce risk, and build cultures where people can perform at their best.

At Oculus HR, we support businesses to turn people challenges into clear, practical plans for the future. If you’re using the end of the year to reflect and would value support preparing for 2026, we’re here to help.

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