Focused HR strategies to underpin employers' confidence for 2026

HR leaders will focus on collaborating with AI to strengthen human assets, strategic HR and boosting employee experience, says expert

Eimear Byrne, country leader, SD Worx, a provider of HR and payroll solutions, based in Bray, Co Wicklow.

The year ahead will see HR leaders focused on four key trends: collaborating with AI to strengthen human assets, strategic HR, increased focus on employee experience and fluid HR.

So says Eimear Byrne, country leader, SD Worx, a leading provider of HR and payroll solutions. Based in Bray, Co Wicklow, SD Worx has recently launched 'HR Trends 2026', an in-depth report outlining what SD Worx views as the four major transformations that will redefine the world of work in the years ahead.

“There has been a big shift in the way that AI is viewed,” says Eimear Byrne. “Initially, some people felt vulnerable about engaging with AI. They felt it would be a negative for a number of reasons.

“Since they’ve been using AI, however, they have found that it has helped them in their job, doing admin and other tasks at pace, freeing up time for them to do the critical things that AI can’t do. People are adapting and working with AI.” 

 Eimear says people increasingly view AI as a digital ally. Employers are aware that while some AI users will be stronger than others, each is bringing a different and valuable perspective.

Is Ireland keeping pace with global AI trends?

“Yes, I think that Ireland is in a good place, more than keeping pace with AI,” said Eimear. The EU AI Act is helping. That was needed. People tend to react to regulations and compliance.

“At SD Worx, we are in the technology space, so our clients want to know how we are using AI. What we are seeing is that HR leaders are viewing AI as a useful tool; this is ensuring greater use of AI.

“We need to manage AI, ensuring that its use is transparent, governed by clear policies and with trust built into its use.” 

 Eimear says HR leaders are already driving the shift in how AI is perceived, evolving from being viewed as a tool to being seen as a partner or ally.

Organisations that successfully embed these principles will be the ones that make technology truly human-centric.

She says that by offloading repetitive tasks to AI, HR teams can devote more time to coaching, collaboration, problem-solving and culture building.

Unlocking AI’s potential requires intentional design and a strong foundation built on: intelligence, real-time responsiveness and trust.

Meanwhile, in an era defined by technological acceleration, talent scarcity and economic uncertainty, HR cannot remain in a reactive, supporting role – it must take the lead in transforming the business.

HR will also play an increasingly strategic role in the year ahead in ensuring that employees see themselves as value creators. Training has a key role to play in this context.

“In relation to training, people want a more personalised experience,” says Eimear. “Instead of rolling out the same training to everyone, you must tailor the training to each individual and their career path.

“HR can help in driving a more personalised journey for each individual employee. HR will keep the focus on driving empathetic leadership that is human-centred. It is particularly important for millennials and younger people coming into the workforce that they can see that they feel they’re working in an inclusive work culture.” 

Eimear also says that HR will be more fluid, with less rigid structures when it comes to promoting each individual’s career path.

“We will see more internal mobility. With rapid change becoming the norm, adaptability will be a defining organisational trait by 2026. HR leaders must step into the role of Flow Architect, building systems that adjust fluidly to shifting priorities.

“This includes rethinking roles, career paths, and learning ecosystems so that skills remain relevant. New regulations like the EU Pay Transparency Directive and AI Act will further accelerate the need for transparency and fairness.”

 First up for HR, and indeed for payroll software providers, will be the smooth rollout of pensions auto-enrolment, introduced on January 1. This has brought increasing administrative responsibilities for management.

The subject matter experts at SD Worx have been delivering webinars on pensions AE, fielding questions and the Gov.ie portal for employers, launched in December. Broadly welcomed by employers and employees alike, pensions AE has added some strain for payroll management.

“Some smaller companies may feel that the supports have come a bit late. To be fair, most companies have made use of the resources available, they’ve attended the webinars and they seem to be quite confident around the smooth management of pensions AE rollout.” 

 Most companies have taken on board the advice of Tata Consultancy Services (TCS), the company which signed a 15-year contract with the Department of Social Protection to implement the My Future Fund pensions AE scheme.

Some companies, however, will face State-imposed fines for attempting to bypass the scheme, hoping to evade the employer contributions that accompany the State’s and the employee’s new pension contributions, which are mandatory at least for the initial phase.

“No company can bypass the scheme,” said Eimear. “Most employers have seen that the scheme will benefit employees. Those companies that tried to avoid the scheme have really only damaged their brand as an employer, not a great idea, especially at a time when many of them are also trying very hard to retain the talent they’ve already got.”

 Looking ahead, HR leaders will also have a key role to play when EU regulations on pay transparency come into Irish law in June.

“This will bring another challenge as we are hoping that this will align with gender pay gap law. We will see greater openness around access to information. HR leaders are acting on this, being more transparent around pay reporting.

“Of course, many companies are already far more open around pay reporting. Most HR leaders prefer to be a step ahead, and not to be seen as being reactive to new regulations. Now we can expect to see even more progress around pay transparency.” 

 Indeed, for HR leaders, the immediate focus on ensuring the smooth adoption of pensions auto-enrolment and pay transparency is seen as just items on the overall to-do list.

From the employee’s perspective, the deeper benefits will come from HR’s drive to promote each individual’s role as a value creator for their employer, helping to guide their career path, including the provision of tailored training and supports around AI adoption.