isolved^®, a provider of human capital management (HCM) solutions that help organizations recruit, retain and elevate their workforce, today released its sixth-annual HR trends report, “HR’s New Balancing Act: 7 Trends to Watch in 2026.” This report draws from several isolved studies to equip HR leaders with data-driven best practices for elevating their talent acquisition, skills, benefits and engagement strategies in 2026.

isolved’s HR trends study reveals the major themes revolutionizing HR in 2026, portraying a complex and dynamic talent market.

No one is winning in a “Nobody Market”

At the heart of the report is how HR views its role within the current labor market. When asked to describe the market, HR leaders’ answers are complicated. Over two-thirds (65%) say the power is shifting back to employers, yet 62% say their industry is facing a self-inflicted talent crisis, and outdated hiring practices are the culprit.

“It seems unlikely we’re in an employer’s market if employers can’t find a way to match talent with their open positions,” said Heidi Barnett, President of Talent Acquisition at isolved. “HR leaders know there are plenty of qualified candidates out there, but they’re losing them during the hiring process. Recent research shows job-hunting intent will be up year over year in the first half of 2026. Yet many companies will miss this influx of job-seeking talent by posting roles with unclear requirements and inflated expectations for skills and experience. HR is unsure how to go back to the drawing board and build a recruitment strategy that truly attracts top talent. The solution is to simplify several aspects of their strategies with direct expectations in job descriptions and interviews, less unnecessary elitism, modern recruitment metrics and fewer steps in the job application process.”

CHROs are becoming tech leaders

Sixty-nine percent (69%) of HR leaders say they’re leveraging AI, and 64% of HR leaders believe it positively impacts their department, with payroll and recruitment emerging as top AI use cases. Those leveraging AI for payroll to detect anomalies before payroll runs not only reduce compliance, risk and costly errors, but also protect trust. Sixty percent (60%) of employees say they’ve been impacted by payroll errors, and nothing erodes trust faster than making a mistake that puts a worker’s livelihood in jeopardy.

Sixty-five percent (65%) of HR leaders say AI helps them work more efficiently. HR teams are increasingly using AI-powered assistants to answer common questions about PTO, holidays and benefits eligibility. The impact of these tools adds up quickly; more than half of HR leaders spend four or more hours a day answering redundant questions.

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