As Australian workplaces continue to navigate economic uncertainty, skills shortages, and rapid change, insights from Blanchard’s 2026 Global HR and L&D Trends Survey highlight five clear priorities for the year ahead.
1. Leadership Capability Is the Biggest Risk – and Opportunity
Leadership capability remains the number one organisational challenge globally, and it strongly resonates in our tight labour market. In times of uncertainty, capable leaders are the stabilising force that drives engagement, performance, and retention. Investing in leadership development is no longer optional – it’s foundational to organisational resilience.
2. Managers Matter More Than Ever
Mid-level and frontline managers will carry the greatest load in 2026. They translate strategy into action, shape culture, and directly influence employee experience. Organisations should prioritise practical, applied development for managers – particularly in coaching, communication, change leadership, and adaptability.
3. Hiring and Retention Will Get Tougher
Australian employers expect both hiring and retention to become more challenging. Culture fit has overtaken skills shortages as the biggest hiring barrier, while limited career progression, burnout, and dissatisfaction with leadership continue to drive turnover. Clear development pathways and strong people leadership will be critical differentiators.
4. Learning Must Be Targeted, Blended, and Relevant
The “new normal” in learning has arrived. Blended delivery – combining in-person, virtual, and digital learning – is here to stay. Bite-sized, practical learning is increasingly valued, particularly when tailored to organisational context. Relevance matters more than volume.
5. Adaptability Is a Core Leadership Capability
Adaptability has rapidly risen as one of the most critical leadership skills for 2026. Businesses need leaders who can guide teams through ambiguity, communicate clearly during change, and remain flexible as priorities shift. Those that embed agility into leadership capability will be best positioned to thrive.
What does this mean for your business?
In 2026, organisations that succeed will be those that strengthen leadership capability, support their managers, invest in relevant learning, and create environments where people can grow.
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Make leadership development non-negotiable – invest consistently in developing leaders who can stabilise teams, lead through uncertainty and sustain performance.
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Prioritise frontline and mid-level managers – equip managers with practical skills in coaching and communication. These leaders have the greatest impact on engagement, culture and retention.
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Strengthen career pathways to retain talent – clarify development pathways and build internal mobility.
Ready to Act? Focus HR offers practical leadership development and coaching solutions. Contact us to find out more.