"Many organisations are entering the year facing economic headwinds, while the early promises of AI have yet to be fully realised and hybrid working has still not fully settled. Leaders will be asking what it will take to unlock higher productivity in a period of uncertainty. At the same time, the labour market will feel unusually static. With a frozen jobs market for recent graduates, fewer people will want to take risks by moving roles."
"These pressures will force a shift from tactical fixes to systemic redesign. Productivity in 2026 will not be driven by longer hours or tighter oversight, but by redesigning work for clarity, collaboration and capability-building. Leaders will need to look closely at how teams work, how decisions are made and how technology is embedded. The organisations that succeed will be those that rebuild working practices-combining human energy with the emerging potential of AI-to create a more stable, productive rhythm of work."
Productivity will be the defining focus of 2026 as organisations face economic headwinds, unfinished AI promises, and unsettled hybrid working. Labour markets will be unusually static, reducing movement and requiring companies to engage, develop and re-energise existing talent. These pressures will force a shift from tactical fixes to systemic redesign, with productivity driven by clearer work design, collaboration and capability-building rather than longer hours. Leaders must examine team processes, decision-making and how technology is embedded. AI should augment human work through organisational intentionality. HR must increase use of data to stabilise hybrid practices, support wellbeing, and prioritise reskilling.
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