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HR Trends 2026: Skills as the new currency, AI and evolving capabilities 

Skillsoft chief people officer Ciara Harrington

by Muna Abdi
29/12/2025
HR, AI, formal processes, personal use, Brightmine
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In the past, organisations have relied on fixed job architectures that define people by their roles, levels, and functions. Every decision—from compensation to performance expectations—has been tied to these traditional structures. But as we look to the future, it’s clear that skills are becoming the new currency of work. Instead of asking ‘What is your job title?’ we’ll be asking ‘What skills do you bring, and how proficient are you in them?’ This shift means that talent decisions—hiring, promotions, succession planning, and even project assignments—will be based on the actual skills people possess and their ability to apply them, rather than their place in a hierarchy.

Looking ahead, organisations must move away from static roles and embrace dynamic, skills-based models that allow for greater flexibility, faster reskilling, and more meaningful career growth. However, this transformation will not happen overnight—organisations cannot simply discard existing job architectures and instantly become skills-based. Instead, the shift requires a gradual, iterative approach: starting small, integrating skills thinking into everyday processes like hiring and performance reviews, and piloting new methods to learn what works. This approach will empower employees to showcase their strengths, enable leaders to build teams with the right capabilities for evolving business needs, and help companies stay competitive in a rapidly changing market. Skills will become the foundation for opportunity and innovation, driving a culture where everyone can contribute and grow based on what they can do, not just the title they hold.”

The Human-AI Collaboration in HR Strategy

As AI takes on more of the routine and administrative work in HR, leaders are faced with a critical question: Where do we intentionally preserve the human touch? It’s not just about making processes faster or more efficient—it’s about making conscious choices to ensure employees continue to feel connected, supported, and valued. For example, while a bot might handle onboarding logistics or answer basic benefits questions, it’s the personal welcome, the culture-building conversations, and the ongoing support from HR business partners that truly shape the employee experience.

Moving forward, I believe organisations that thoughtfully balance technology and humanity will stand out as employers of choice. They’ll deliver operational excellence through automation, but also create a workplace where people feel seen and heard. The companies that thrive will be those that use AI to free up HR’s time for what matters most—building relationships, driving culture, and supporting people through change—while leveraging automation to streamline processes and deliver faster, more accurate service. Culture eats strategy for breakfast, after all. The future isn’t about choosing between tech and people; it’s about designing an employee journey where both works together to create lasting impact.”

Evolving HR Capabilities for the Future

HR has always excelled at communication and influence, but changing needs are exposing vulnerabilities with technical skills, analytics, and systems thinking. The ability to interpret data, improve processes, and think critically is what will set HR apart and enable us to drive real value in a world where AI and automation are reshaping how work gets done.

We must continue to evolve like the landscape around us. Next year, and beyond, I believe the most successful HR teams will be those that embrace this evolution—combining our people-centric strengths with a deep understanding of technology and analytics to lead the business forward. We’ll need to rethink the profile of a successful HR professional, investing in upskilling and reskilling our teams so we can deliver insights, drive strategy, and prove our impact in the boardroom. The future of HR is about being both empathetic and data-driven, and those who make this shift will be the ones who truly transform their organisations.

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The podcast from Benefits Expert, the title for HR, reward and benefits professionals.

Seasoned professionals examine the challenges and innovations in today’s employee benefits, reward and HR sector. Every episode, they will unbox a key issue and unpack what it really means for employers and how they can tackle it.

The regulars are Claire Churchard, editor of Benefits Expert; Carole Goldsmith, HR director at the Royal Horticultural Society, and Steve Herbert, consultant and rewards & benefits veteran.

Benefits Unboxed – Hybrid work: reality versus rhetoric
byBenefits Expert from Definite Article Media

Return-to-office mandates are a topic that’s generating plenty of heat in the media, but how closely do the headlines match workplace reality? 

In this episode, one of a three-part series of 10-minute podcasts, hosts Claire Churchard and Steve Herbert discuss data that shows remote or home working is on the rise.

We look at what this means for HR, from balancing employee flexibility with business needs, to ensuring benefits packages remain fair and accessible. We discuss the pinch points, and the opportunities, in building the new normal of work.

Benefits Unboxed – Hybrid work: reality versus rhetoric
Benefits Unboxed – Hybrid work: reality versus rhetoric
31/08/2025
Benefits Expert from Definite Article Media
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