Market Predictions for 2026

Following on from our 2025 market prediction review, the Peoplecorp team have come together to share our market predictions for 2026. As the HR landscape continues to evolve, capability, technology and risk management are expected to remain front of mind.

Do you agree with our predictions, or is there anything we’ve missed?

AI and automation will materially reshape HR roles

AI will move firmly into execution mode in 2026.

• Administrative-heavy HR roles will continue to decline as automation becomes embedded.
• HR Operations and People Services teams will become increasingly system-led, with a strong focus on digital workflows and process optimisation.
• We expect a continued rise in automation-led leadership roles, with Chief People & Technology / hybrid HR–Tech roles emerging as organisations look to combine HR and technology capability. While not all organisations will adopt this in 2026, we expect this shift to accelerate over the next three years.

HR Generalists and HRBPs will be expected to be tech-savvy and data-driven

The generalist skillset will continue to evolve.

• Data literacy and HR systems capability will become core requirements, not add-ons.
• HR professionals will be expected to translate people data into commercial insight, particularly across retention, performance and engagement.

The Senior HRBP role will broaden and become more risk-focused

The scope of senior HR roles will continue to expand.

• Strong ER and IR capability will be essential, driven by ongoing legislative change.
• Senior HRBPs will need to balance compliance, risk and commercial outcomes while partnering closely with legal and business leaders.

Safety, wellbeing and RTW capability will remain in high demand

Regulation and risk awareness will drive sustained demand.

• Demand for Safety and Return to Work professionals is expected to increase, particularly following changes in NSW WHS legislation.
• Psychosocial safety and employee wellbeing will remain central to organisational risk and culture agendas.

Entry-level HR roles will become fewer, more technical and more competitive

The HR career pathway is shifting.

• Reduced administrative work will limit traditional entry-level opportunities.
• Junior HR roles will increasingly focus on HR systems, automation and AI-enabled process improvement.

Hiring will remain cautious, but competition for capability will intensify

Growth will be measured rather than expansive.

• Organisations will continue to hire selectively, seeking highly capable and multi-skilled candidates.
• Increased movement at CPO level is likely to trigger restructures, particularly across HR Operations and People Services teams.