Resetting the employee relationship in 2026

With workplace trends changing faster than ever, Ray McKenna explains why it is crucial for today’s employers to reset the employee relationship to attract and retain talent in 2026 and beyond

The employer–employee relationship is undergoing a rapid structural shift, and there is no sign the pace of change will slow down any time soon.

In 2024, close to two-thirds of workers reported an increase in both the extent and pace of change at work compared to the previous year.

The need to continuously adapt is now a given, driven largely by the advent of artificial intelligence (AI), digital adoption and economic uncertainty.

To keep pace with this change, organisations are embracing clearer, more authentic and better aligned employee propositions designed to support attraction, retention and engagement through the next phase of workplace evolution.

The future of work

Most employees prioritise salary, work-life balance and job security but tailored skills strategies will matter more in the years ahead.

Leaders must balance a mix of short- and medium-term actions in their plans for employees in 2026.

In Ireland, the immediate items on the agenda for employers in the new year include pension auto-enrolment and the European Union’s Pay Transparency Directive.

In addition to recognising upcoming changes, however, business leaders must also focus on long-term strategies.

Throughout 2025, we have been asking organisations two questions:

• What do you see changing in the world of work over the next three to five years?
• What will this mean for how you attract and retain talent, today and in the future?

Most organisations told us they had never before witnessed the level of change they had seen in the workplace in the last five years.

They do not expect the pace of change to slow and are instead anticipating even more significant transformation in the next five years.

We have summarised their feedback into eight steps employers can take to keep their businesses adaptive and resilient in 2026.

1. Create a clear and authentic EVP

Simplicity and trust will dominate a refreshed employer value proposition (EVP) as businesses seek to engage employees on business changes ahead.

Organisations will prioritise clear, connected narratives over complex benefit stacks—defining what the organisation is, what it offers for the future and what’s expected in return.

Refreshing the EVP is not just about optimising cost and impact, it is also about strategically aligning employer and employee expectations for the future.

2. Embed flexibility as a strategic imperative

Flexibility will evolve from policy necessity to cultural priority.

Structured flexibility frameworks that balance fairness, sustainability and blended workforce models (e.g. contractors, fractional workers etc.) will become more widespread.

Effective workforce planning now requires disciplined execution to serve employee needs effectively and support business performance.

3. Deliver guided personalisation

Guided personalisation offers employees meaningful choice about how they work within clear boundaries, using data and technology to tailor experiences while maintaining consistency and fairness.

Guided choice within defined parameters will likely replace unlimited customisation in the years ahead. Predictive AI and life-stage portfolios will enable structured options without losing organisational identity.

4. Position career development as a benefit

Growth and learning opportunities will become an important retention lever. Internal mobility, project-based work and skills development will be positioned as core benefits, not optional extras.

Many of the organisations we spoke to told us that future-proofing the development of skills was becoming their most valued employee benefit.

5. Prioritise execution excellence over expansion

A recurring message from our clients is that executing the basics brilliantly is now critically important.

As organisations shift their focus from simply adding new programmes to thinking more deeply about how they are delivered, discipline, alignment, measurement and simplification will become the new maturity markers.

6. Focus on preventive health and everyday wellbeing

Health strategies will move towards early intervention and embedded support, leveraging technology for proactive care, rather than reactive fixes.

Practical systems—with personalisation and prevention as key elements—will ingrain support into workplace culture, rather than treating it as a reactive add-on.

7. Integrate communication and tech-enabled navigation

Visibility, not volume, is emerging as the new measure of success. Expect multi-channel, consumer-grade platforms and AI-driven navigation to dominate communication strategies around benefits designed to optimise employee engagement.

8. Centre governance and compliance in strategy

Promoting governance and compliance is key to ensuring sustainable and structured organisational growth.

Irish businesses must plan for the implementation of auto-enrolment, pay transparency, minimum pension contribution for occupational schemes and AI governance.

Further, the Health Insurance Authority recently announced that the levy on health insurance policies will rise by 10 percent in April 2026, adding more complexity for businesses providing compliant and comprehensive programmes to their employees.

With 2026 fast approaching, employers can take steps now to reset the employee-employer relationship, ensuring a longer-term view is considered alongside short-term and annual horizons.

Taking the right steps now can help improve employee engagement and keep your proposition both cost-effective and future-proofed.

Ray McKenna is Partner Head of People Solutions at Lockton