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HR Trends 2026 - ALT: Broker

Jarylle Montevirgen

Created on December 19, 2025

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Strategically Embracing AI

Strengthening a Talent Pipeline

HR in 2026:

Key Trends Shaping the Next Era

Partnering with a PEO

Continuous Performance Management

Download Full Report

Compliance Rules and Risks

Defining, Measuring, and Growing Culture

Strategically Embracing AI

In 2026, the most successful businesses will see AI as a helpful partner, not a replacement. Advise clients to let AI tackle repetitive tasks like payroll, recruiting, and onboarding, so leadership teams can stay focused on culture and growth. Emphasize responsible adoption, trying new tools, and learning what works along the way.

The goal of AI isn’t to replace people; it’s to help them do their best work.”

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Continuous Performance Management

Performance conversations shouldn’t happen once a year. Ongoing, two-way feedback helps keep employees aligned, engaged, and growing. By advising on modern performance frameworks, you can help clients strengthen manager effectiveness, performance, and retention to drive better business outcomes.

Continuous feedback keeps employees engaged and eliminates surprises during annual reviews.”

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AI AND TECHNOLOGY

AI and tech are reshaping the workplace. While AI automates tasks, enhancing productivity, technology as a whole boosts efficiency and streamlines operations. Together, they enable employees to focus on creative, high-value work, driving growth and innovation across SMBs.

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Core Focus Areas:

  • AI for Workforce Advancement
  • Unconscious Bias: AI Considerations in Recruiting
  • AI Policies and Cybersecurity Readiness

Defining, Measuring, and Growing Culture

Great culture doesn’t happen by accident, and clients are increasingly looking to brokers for guidance on how to protect and scale it. Clearly defined values and expectations show employees how to succeed, while measuring engagement and outcomes reveal what’s working and potential improvements. By communicating openly, celebrating wins, and adjusting as needed, businesses can build a culture that stands the test of time.

Culture isn’t dictated by senior leadership, it’s supported by them.”

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Compliance Rules and Risks

From the rapid development of AI to numerous state-specific law changes, proactively managing organizational compliance is a key priority in 2026. Brokers who help clients stay ahead of regulations reduce risk, strengthen trust, and position themselves as indispensable advisors, not just benefits providers.

Treat compliance as a strategic advantage, not a last-minute scramble.”

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Strengthening a Talent Pipeline

Today’s talent strategies require balance. Clients must balance developing internal employees while hiring externally to bring in new skills and perspectives. Brokers play a key role in helping clients navigate areas like global hiring, compliance, and benefits competitiveness, while reinforcing employer branding and workforce planning to support retention.

Retention remains a top priority, but organizations will need to strike the right balance between promoting from within and bringing in new talent.”

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Company Culture

Company culture is everything! SMBs must prioritize open communication, inclusivity, and feedback to keep employees engaged and attract top talent. With five generations in the workforce and evolving DEI needs, companies must adapt to stay competitive and ensure long-term success.

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Core Focus Areas:

  • Strategic Hiring and Workforce Planning
  • Onboarding and Employee Development
  • Employee Transitions and Workforce Mobility
  • Succession Planning and Talent Development

Partnering with a PEO

As HR continues to advance, your clients will increasingly turn to you to bring the right partners to the table. That’s where a PEO partnership can pay off. By aligning with a PEO like ExtensisHR, you can provide your clients with dedicated HR support, large-group benefits, complimentary recruiting, and proactive compliance guidance, while expanding your service offering and growing your book of business.

Learn more about the advantages of working with ExtensisHR