3 ways HR leaders can get ready for 2026

2025 has been a year of recalibration. Rising healthcare costs, regulatory shifts and evolving employee expectations are redefining what readiness means. With 2026 fast approaching, those who take thoughtful, decisive actions now will be best positioned to lead with confidence, resilience and a competitive edge.

Here are three actions to strengthen performance, reduce risk and stay ahead.

1. 01

   Take action to contain costs

   Healthcare costs are projected to rise another 9.1% in 2026. More than half of employers are exceeding their budgets, resulting in greater financial pressure today than at any point in the past 10 years.

   What to do now:

   Consider a data-driven audit of your entire rewards package. Review plan designs, contribution strategies and vendor contracts across health, wealth and compensation.  Establish firm success metrics for all benefit vendors (health, retirement, wellness) and hold them to their performance.

   • Benchmark your specific healthcare utilization and unit costs to national and industry norms. Prioritize interventions that target the specific areas driving higher costs and worse outcomes
   • Evaluate a shift from low-performing programs to those delivering a clear ROI. This includes exploring modern healthcare models like ICHRA and HRAs, which provide sustainable cost control and flexibility. As these solutions gain significant press, leadership will expect you to understand their financial impact
   • Conduct compensation surveys to ensure pay is competitive for the right roles and diligently manage year-end performance. This includes clear messaging to managers, differentiating pay based on performance and reviewing skills in light of potential workforce changes
   • Drive accountability, understanding and engagement, and communicate the full value of your total rewards. Spend time educating employees on using their benefits wisely — from choosing in-network providers to optimizing retirement contributions

   Making these strategic tradeoffs is essential for protecting your budget while reinforcing your employer value proposition and building employee trust.

2. 02

   Avoid costly non-compliance

   The compliance landscape for HR is rapidly evolving, with new federal and state requirements taking effect in 2026. Non-compliance will be costly.

   Key priorities:

   • Roth catch-up and SECURE 2.0: Confirm payroll processes, retirement plan language and employee notifications meet the new rules
   • Mental health parity: Audit plan documents, claims processes and communication to prove parity and prepare for enforcement
   • Pay equity and fair pay: Develop/refresh your pay transparency strategy including updating compensation frameworks, job postings and internal pay education for leaders, managers and employees
   • Executive compensation: Review the latest proposals from Institutional Shareholder Services (ISS) and Glass Lewis and ensure your board of directors is aware of the implications for your company
   • Worker classification: Ensure onboarding forms, payroll and contracts reflect new classification standards
   • Leave laws and workplace safety: Refresh policies in HRIS, handbooks and plan documents
   • Data privacy: Align systems, consent process and employee notices with stricter mandates

   What to do now:

   • Conduct a Roth Readiness assessment to ensure that you are ready for the new rules to take place in 2026 and plan for change management across systems, plan updates and communications
   • Consider health checks on your job architecture and reward programs to ensure they are set up to support your evolving business strategy, comply with pay transparency regulations and reflect the impact of AI on your workforce. Conduct a Benefits Mapping Assessment to ensure you have planned for 2026's compliance requirements for all your programs

   Strong compliance infrastructure simplifies audits, reduces risk and demonstrates diligence to employees and regulators alike.

3. 03

   Gather employee insights

   As open enrollment is coming to a close, benefits are fresh on employees' minds. This is a great time to get a pulse on your employees and the value they place on your benefit programs. There is time to do a quick pulse survey or virtual focus group to set yourself up for next year.

   What to do now:

   • Launch pulse surveys or deploy listening platforms to regularly capture employee sentiment in real time
   • Map high-impact moments in the employee journey to identify friction and opportunities to support employees through uncertainty
   • Use feedback to tailor communication and training, addressing concerns proactively

   Listening becomes your early warning system and powerful accelerator for successful change management when the pace of disruption accelerates.

Set the pace for 2026

Every decision made before year end shapes your trajectory for the year ahead. By aligning strategies, resources and teams now, HR leaders can build lasting advantage and enter 2026 ready to lead through change.

Ready to act?

From compliance activities to managing costs, we deliver scalable, measurable solutions that drive results.

Schedule a strategy session with a WTW advisor. Complete the form today.

Contacts

---

Michelle Acciavatti

North America Health, Wealth & Career Leader

email Email

---

Dave Carr FSA, MAAA

Senior Director, Health & Benefits

email Email

---

Catherine Kenagy

Senior Director, Retirement

email Email

---

John Jones

Managing Director, Employee Experience Business Leader, North America

email Email

---

Gina Kashuk

Managing Director, Integrated & Global Solutions

email Email

---