By Bill Benson and Jeff McGraw
As we enter the final stretch of 2025, one reality is apparent: the only constant is change. Labor markets continue to shift, skill needs are evolving rapidly, and organizational agility is more important than ever.
So how do you plan for people when the road ahead is anything but predictable? How do you mitigate the risk of surprises while also preparing to deal with dynamic changes in the market?
Let’s break it down.
Talent can be either a growth lever or a growth deflator.
Talent planning is no longer just about headcount. It’s about aligning the right people, capabilities, and leadership with your evolving business strategy.
In the year ahead, companies will need to ask:
- What talent do we need to enable our 3-year plan?
- Where are we vulnerable if key people leave or retire?
- What capabilities are missing as our industry or customer expectations shift?
This shift from reactive hiring to strategic workforce planning requires a cross-functional effort. It’s not just HR’s responsibility, but a senior leadership priority.
Navigating Uncertainty: Common Challenges in 2026 Talent Planning
Even well-led organizations are facing a new set of questions:
- Do we have the leadership bench to grow? With retirements looming, generational transitions accelerating, and a scarcity of experienced managers, many businesses face a looming leadership gap. Start succession conversations early, not just for executives, but for critical roles across the business.
- How do we budget for talent amid cost pressures? Inflation may have cooled, but wage pressure has not. Balancing competitive pay with financial discipline will require tough conversations. Instead of just benchmarking salaries, benchmark the value each role creates and align compensation accordingly.
- Are we prepared for a more flexible, hybrid, or distributed workforce? Remote work isn’t fading, but it is evolving. Many mid-sized firms are finding success with hybrid models or flexible scheduling. It is a practical challenge for many roles, but some form of flexibility is essential to the majority of job seekers. Use Q4 to audit which roles truly require in-person presence and where flexibility can help attract and retain talent.
5 Actions to Take Before Year-End
Here are five practical steps every executive team should consider as part of Q4 planning:
Update or Create a Talent Map. Outline your current org chart and layer in:
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- Where do you expect growth, turnover and retirement?
- Who is ready for more responsibility?
- What are your biggest talent and capability gaps?
- Prioritize 3–5 Critical Roles. Not all roles are equal. Identify the few that will most influence 2026 success — and make sure you have a strong plan to fill, back up, or develop them.
- Engage Your HR Partner Strategically. Treat HR as a strategic partner, not a support function. Involve them early in planning, budgeting, and leadership development discussions.
- Invest in Internal Capability Development. Don’t assume you’ll be able to hire every skill externally. Consider training, mentoring, and stretch assignments to build capability in-house.
- Build Scenario-Based Hiring Plans. Rather than one rigid plan, build flexible models: What does hiring look like if revenue grows 10% vs. 20%? What if a key person leaves unexpectedly?
Final Thought
If 2025 was a year of stabilization, 2026 could be a year of acceleration — but only if your talent strategy is aligned to your business goals.
Strategic talent planning isn’t about predicting the future perfectly. It’s about being prepared, proactive, and aligned so that when change comes (and it will), you’re not caught flat-footed.