HR Trends for UK Businesses 2026
- Federation of Small Businesses

- 2 days ago
- 4 min read

Discover the top five HR trends for UK small businesses, from "job-hugging" and retention strategies to AI upskilling and the new Employment Rights Act.
As we move through 2026, businesses are facing a unique set of contradictions: recruitment is slower, yet skills shortages persist; hybrid work is settled, yet culture feels fragmented. To navigate this, employers must look at the emerging HR trends shaping the market, moving away from rigid job titles toward employee retention strategies that actually work in a fluid economy.
In this guide, we’ll look at four important shifts in team management strategies this year.
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