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Higher education in 2026: 5 trends reshaping the landscape

Author

Josephine Gartrell, J.D.,
Russell Wilson and
Brian Xing
January 27, 2026

Higher education entered 2026 at a crossroads. Institutions are grappling with new financial realities, workforce challenges and technological disruption. And this is all against a backdrop of declining enrollment and geopolitical uncertainty.

Recent policy changes, including a tiered endowment tax structure, are reshaping financial planning. Meanwhile, hiring freezes and shrinking merit pools are altering compensation strategies, and unionization momentum is growing among non-tenure-track faculty.

Technology, particularly AI, is transforming learning delivery and administrative processes, while institutional enrollment declines threaten billions in revenue. For leadership teams, these trends demand proactive planning, transparent communication and innovative approaches to talent and financial management.

Authors

Josephine Gartrell

Josephine Gartrell, J.D.

Managing Director, Work & Rewards

Russell Wilson

Russell Wilson

Senior Director, Executive Compensation and Board Advisory

Photo of Brian Xing

Brian Xing

Analyst, Work & Rewards.