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Hiring Trends 2026: How Businesses Can Build Future-Proofed Teams
08 Jan, 20265 Minutes
2026 is set to be a year of rapid change in the global hiring landscape, as businesses face ongoing skills shortages, rapid technological advancement, shifting workforce expectations, and increasingly complex regulations. Demand for senior-level and specialist talent shows no sign of slowing, meaning hiring decisions are becoming more critical and strategic than ever before.
For leadership teams, 2026 is a year that requires forward planning to ensure hiring aligns with business strategy and future workforce needs. The organisations that succeed will be those that invest in the right expertise, insight, and partnerships to support their business growth.
In this article, we explore the key hiring trends shaping 2026 and what businesses must focus on to build future-ready leadership teams.
If your business is planning senior or specialist hiring in 2026, contact our executive search experts today.
Skills-Based Hiring in 2026: Expanding the Leadership Talent Pool
Skills-based hiring is becoming an increasingly adopted approach modern talent strategy. Organisations are now prioritising candidates’ core skillset over their previous experience or academic achievements. This shift is being driven by persistent skills shortages, rapid digital transformation, and the growing need for adaptable leadership.
Research from LinkedIn’s Economic Graph shows that skills-based hiring can increase the talent pool by up to 8.2x for certain roles. As a result, employers are designing job descriptions around specific outcomes, capabilities, and impact, rather than years of experience. In response to ongoing shortages, 53% of employers have already removed degree requirements for some roles, recognising that expertise can be developed through a wide range of pathways.
Leadership roles in 2026 require transferable skills such as driving transformation, scaling teams, and leading through change. These abilities often come from adjacent industries or non-traditional career paths, so skills-based hiring is crucial to access a broader and more diverse leadership talent pool.
For businesses, adopting a skills-first mindset means clearly defining what success looks like in a role, understanding which skills will be needed in the future, and being open to candidates who bring the right capabilities even if their background does not match a traditional profile. This reinforces the importance of partnering with an executive search partner with the deep market insight required to design a role that ensures leadership hires support future needs.
AI in Recruitment 2026: Combining Automation with Human Expertise
In 2026, artificial intelligence is a key strategic tool that shapes how organisations assess and future-proof their workforce. It is now embedded throughout the entire hiring process, as it handles high-volume and repetitive tasks such as CV screening, skills matching, interview scheduling, and initial assessments. AI-powered tools reduce time-to-hire by as much as 75%, allowing teams to move faster in increasingly competitive markets.
Predictive analytics are being used to forecast employee turnover ahead of time and highlight emerging skills gaps across leadership teams. This data-led insight allows organisations to plan hiring needs in advance and align talent decisions more closely with business objectives.
However, the growing reliance on AI also brings new responsibilities. In August 2026, the EU AI Act will become fully applicable, classifying AI use in recruitment as “high-risk”. Any organisation hiring within the EU, or using EU-based recruitment software, must ensure that AI systems are supported by human oversight and trained on high-quality data sets to prevent bias. Organisations must audit their hiring technology and understand how decisions are being made, as failure to do so risks regulatory penalties and damage to their employer brand.
This makes the human element of hiring even more valuable, particularly in senior-level recruitment where leadership impact cannot be measured by data alone. Rather than being replaced, executive search specialists are becoming more influential as strategic talent advisors. The most effective hiring strategies use AI to inform decisions while relying on experienced professionals to consider context, assess cultural alignment, and guide businesses towards long-term success.
Flexible and Hybrid Working Trends in 2026
Instead of being a benefit offered by progressive employers, flexible working has become a base expectation across the global workforce, including senior and executive talent. However, there is still some friction as organisations look to balance flexibility expectations with collaboration, culture, and in-office presence.
While many employers are pushing for greater visibility, research shows that 83% of professionals feel more productive in a remote or hybrid environment, and 72% say they would leave a role that does not support flexible working.
Scheduled hybrid working is becoming the preferred approach. Rather than focusing on where people work, this model considers the benefits of both remote and in-person working. Office days are designed for collaboration, leadership visibility, and decision-making, while remote days are used for deep focus and delivery. This distinction benefits both employers and employees, as it sets clear expectations while keeping the autonomy that modern professionals value.
Adjustments to flexible working legislation are expected in 2027, meaning employers will be required to clearly justify refusals of flexible working requests and explain why decisions are reasonable from a business perspective. Although this change has not yet been implemented, forward-thinking organisations are already embedding transparency and consistency into their policies as they recognise that flexibility will continue to shape both compliance and talent attraction.
Businesses that fail to adapt will struggle to access high-calibre talent, while those that embrace flexibility position themselves as strong employers in a highly competitive market.
Workplace Wellbeing and Mental Health: A Core Business Strategy for 2026
Employee wellbeing is a strategic priority for businesses in 2026 and a core driver of performance, retention, and culture. Businesses are increasingly aware of the cost of employee burnout, with workplace stress estimated to cost organisations more than $300 billion globally each year through lost productivity, sick days, and turnover.
In response, many employers are implementing proactive wellbeing strategies, with initiatives such as recharge weeks and screen-free hours designed to counter fatigue and support performance. For candidates, wellbeing is now a key factor when assessing potential employers, as they seek organisations that fully support the mental health of their employees.
Looking ahead, the key differentiator for executive professionals will be the ability to lead with the emotional intelligence necessary to maintain a resilient and healthy workforce.
Talent Shortages in 2026: Why Internal Mobility Is Now a Core Priority
The main challenge businesses are facing across all industries is a global shortage of talent, with 70% of recruiters reporting difficulty in finding candidates with the right skills. While demand fluctuates by sector and geography, supply is struggling to keep pace across many talent markets.
As a result, organisations are increasingly focusing on internal mobility by moving existing employees into new roles through structured reskilling and development. This reduces reliance on increasingly competitive talent markets and improves retention by offering clear progression pathways. For high-potential employees, particularly at mid-to-senior level, the opportunity to grow into new leadership or specialist roles is a key factor.
However, internal mobility also needs to be aligned with talent strategy. Organisations need to have a clear understanding of their future hiring needs to identify which skills can be developed internally and where external expertise is required to drive growth.
Gen Z Workforce Expectations: Transparency, Purpose, and ESG in 2026
With Gen Z expected to represent around 30% of the global workforce by 2030, these professionals are having an increasingly significant influence in the workplace. This generation values transparency, diversity, and purpose, so these factors are crucial to attract future leaders. Salary transparency is becoming particularly normalised in the modern workplace, with new legislation such as the EU Pay Transparency Directive set to be implemented by June this year.
Gen Z also places strong emphasis on purpose, ESG commitments, and DEI, and they expect organisations to take meaningful actions to demonstrate their values. Businesses must provide a positive candidate experience to attract and retain talent, as these values will be assessed from the very first interview stage.
As Gen Z professionals begin moving into management and specialist positions, open communication and clear commitment to social and environmental responsibility will become increasingly crucial. Because of this, senior leaders are now assessed on their ability to lead transparently, champion inclusive cultures, and align business strategy with wider ESG expectations.
Executive Search Experts at CSG Talent
In 2026, navigating the hiring market requires deep market insight, an understanding of regulatory and technological change, and the ability to align leadership talent with long-term business objectives. For organisations recruiting at senior or executive level, the cost of a bad hire is higher than ever.
At CSG Talent, we help businesses refine their hiring strategy and identify leaders with the right skills and mindset for the future. With industry-specialised recruiters in over 30 different sectors, we provide a consultative approach to executive search that allows us to support organisations through growth and transformation.
Contact CSG Talent for support attracting and retaining senior-level talent.
