Preparing your workforce for 2026

Colleen Malmassari
Founder of Back40 Advisors LLC

As 2025 quickly moves forward, many organizations are already thinking about what the next year will bring. Strategic planning for 2026 is not just about forecasting revenue or setting sales targets—it’s also about preparing your workforce to meet both challenges and opportunities head-on. For people leaders, this means aligning talent strategies, compliance obligations, and workplace culture initiatives to ensure the business is ready for what’s next.

One of the most important aspects of planning for 2026 is anticipating workforce needs. Labor markets remain competitive, and while economic trends may shift, the demand for skilled, engaged employees is not likely to ease. Employers who proactively evaluate their workforce now—identifying skill gaps, succession risks, and leadership development opportunities—will be better positioned to navigate change. Conducting a skills inventory and updating job descriptions can provide a clearer picture of what roles may need to be developed or restructured in the year ahead.

Another key focus should be compliance and regulation. Legislative changes, such as new employment laws, pay transparency requirements, or leave mandates, often take effect at the beginning of the year. By reviewing 2025 updates now and staying alert for emerging 2026 legislation, businesses can avoid last-minute scrambles. HR policies, employee handbooks, and standard operating procedures should be refreshed to reflect both current requirements and anticipated updates. Taking the time to review these documents in advance can prevent compliance pitfalls and reinforce trust with employees.

Planning for 2026 also means looking at employee engagement through a long-term lens. The workforce continues to prioritize flexibility, well-being, and growth. Companies that build programs around professional development, internal mobility, and wellness will stand out in attracting and retaining talent. Employers should consider surveying employees before the end of the year to identify areas of improvement and shape initiatives that reflect their workforce’s real needs.

Financial planning is equally important. Budgeting for 2026 should account not only for salaries/wages but also for benefits, technology, and training investments. For many organizations, technology will continue to play a pivotal role—leveraging AI agents to reduce routine clerical tasks. Allocating resources now ensures there is room in the budget to keep up with innovation rather than being caught off guard or trying to play catch up later in the year.

Culture should not be overlooked in forward planning. Businesses that thrive in 2026 will be those that foster environments of belonging, communication, and adaptability. People leaders play a critical role in shaping this culture, from leading initiatives that bring some fun into the workplace to designing recognition programs that celebrate employee contributions. Building a culture of trust and accountability helps organizations weather change and keeps employees aligned with business goals.

Ultimately, successful planning for 2026 requires structure. Clear policies, SOPs, and communication strategies provide the foundation for executing People initiatives consistently across the organization. By documenting workforce needs, how promotions are managed, and how compliance updates are communicated, People Leaders and/or HR can create stability in times of transition. This infrastructure not only reduces risk but also builds credibility with employees and leadership alike.

As you prepare for the year ahead, ask yourself: what does your workforce need to thrive in 2026? Now is the time to evaluate strengths, close gaps, and design a strategy that supports both your employees and your business objectives.

Colleen Malmassari, a Society for Human Resource Management-Certified Professional, Professional in Human Resources, is the founder of Back40 Advisors LLC.