ExtensisHR’s 2026 HR Trends Report: Talking Points for Brokers

Quick look: As small businesses plan for the year ahead, human resources (HR) challenges are front and center. From adopting artificial intelligence (AI) to navigating evolving employee expectations, this blog summarizes the findings of ExtensisHR’s 2026 HR Trends Report and provides talking points for brokers to turn change into opportunity. The full report can also be downloaded using the button below.

The HR landscape in 2026 is changing rapidly. Employers are navigating the adoption of artificial intelligence (AI), evolving employee expectations, new compliance requirements, and so much more.

For benefits and PEO brokers, these shifts align directly with the advisory role you already play. Helping clients understand what these trends mean and how to act on them further positions you as a go-to resource for SMBs balancing growth, compliance, and workforce complexity.

ExtensisHR’s 2026 HR Trends Report is designed to help you do just that, drawing on insights from David R. Pearson, Chief Human Resources Officer at ExtensisHR, as well as several industry thought leaders:

• Anthony Onesto, Vice President of Platform and Product Marketing at 15Five
• Sandra DiNuzzo, Chief People Officer at CQ fluency
• Jennifer Davis, People Services Business Partner at J. Fletcher Creamer & Son, Inc.
• Chip Ross, Chief People Officer at MANA Products
• Kate Mistretta, Director of Corporate HR at ExtensisHR

Explore our recap of the top trends and corresponding talking points below, or download the full report for a deeper dive.

AI in HR: What client hesitation means for brokers

Artificial intelligence is no longer a futuristic concept, it’s already reshaping how HR teams operate across all industries.

From recruitment to workforce analytics, AI is being used to enhance human expertise by streamlining resume screening, improving candidate-to-role matching, and simplifying interview scheduling. At the same time, predictive, data-driven insights are helping HR teams proactively identify risks related to turnover, engagement, and performance.

Still, many clients approach AI with caution. That hesitation underscores an opportunity for brokers to step in with informed guidance. AI works best as a complement to human judgment, not a replacement, and SMBs need support integrating these tools responsibly. Brokers can help clients strike the right balance between automation and human oversight, particularly in areas like hiring, coaching, and employee engagement.

Key talking points

• Guide intentional AI adoption: Help clients understand where AI adds the most value in HR processes and where human oversight remains critical.
• Share recommendations: Provide examples of HR technology that reduces administrative burden and creates space for business leaders to focus on strategy.
• Consider compliance: Advise clients on using AI compliantly, especially as some states and cities have laws regarding its usage in recruiting operations.

Talent management in a tight market: Advising clients through challenges

A tight labor market and an increased need for specialized skill sets are creating pressure for SMBs. Developing a healthy pipeline of talent requires a multifaceted approach that combines internal promotions and external hiring, and aligns job openings with business goals.

Building competitive benefits and compensation strategies also plays a key part, and brokers are well-positioned to show clients how these programs directly support recruiting and retaining top talent.

Key talking points

• Position benefits as a competitive advantage: Show how comprehensive health, wellness, retirement, and voluntary programs influence recruitment, retention, and engagement.
• Support future-proof plans: Guide clients through workforce planning, succession strategies, and internal mobility policies.
• Think outside the box: Advise on creative solutions for hard-to-fill roles, including remote work and global talent sourcing.

Performance management: The shift to continuous models

Today’s workforce expects more than an annual review. They value ongoing dialogue and coaching, and this frequent communication can spark engagement and build a stronger culture.

Brokers can pair clients with HR experts at a professional employer organization (PEO) to help hone their performance management strategy and provide access to technology that ties performance, recognition, and professional development together.

Key talking points

• Suggest performance management tools: Highlight PEO-backed platforms that facilitate one-on-one meetings, check-ins, performance reviews, and more.  
• Provide training guidance: Share best practices on how managers can give consistent, professional, and documented feedback that considers generational communication preferences.
• Recommend gathering feedback during every stage of the employee lifecycle: Emphasize the value of surveys, stay interviews, and exit interviews to understand sentiment at every touchpoint.

Company culture: Helping clients strengthen engagement

Culture is no longer an abstract concept, it’s a measurable, strategic lever that directly impacts retention, productivity, and business outcomes. When culture is clearly defined, aligned with business goals, and reinforced as organizations scale, it becomes a competitive advantage.

Brokers can help clients shape and sustain culture by aligning benefits strategies, engagement tools, and HR policies with stated values, often supported by the guidance and resources of a PEO’s HR team.

Key talking points

• Align benefits and perks with culture goals: Show how health, mental, and financial wellness, along with family-focused perks like pet insurance and family-forming support, can reinforce the culture clients want to build.
• Demonstrate different measurement methods: Explain how clients can use surveys and employee feedback to understand and assess their culture.
• Assist with navigating trade-offs: Help clients balance employee expectations with what the organization can feasibly provide.

Compliance and employee relations: Managing risk and change

Each year brings new employment laws, and 2026 will be no different. Expanded requirements regarding pay transparency, minimum wage, leave, and AI use in HR all require careful attention. For SMBs, staying compliant requires vigilance and expertise.

Brokers can reframe compliance as a business advantage rather than a reactive obligation, helping clients achieve more while boosting their own credibility.

Key talking points

• Promote proactive compliance: Position PEOs as partners that can help SMBs manage risk, develop AI governance, and maintain compliance with state and federal regulations.
• Discuss how PEOs help clients stay protected: Explain that PEO partnerships act as a compliance safety net, offering co-employment risk management and regulatory guidance.
• Guide through trusted partners: Leverage PEO expertise to support clients with compliant policies, documentation, audits, and employee training strategies.

The value of PEO partnership, in 2026 and beyond

So much is changing in HR, and small businesses must evolve alongside it to stay ahead. As clients navigate workforce pressure, regulatory change, and rising expectations, many brokers are increasingly turning to professional employer organizations (PEOs) to help SMBs stay competitive without the additional overhead.

Through a co-employment model, a PEO handles small businesses’ payroll, benefits, compliance, and recruiting. PEOs are a win-win solution for brokers to propose, with the potential to ease a client’s day-to-day workload and help them adapt to industry changes, without requiring brokers to become complete HR experts themselves.

Key talking points

When pitching PEO, consider mentioning that they can:

• Enable small companies to grow efficiently: PEOs handle daily administrative tasks, freeing leaders and HR teams to focus on strategic, high-priority projects.
• Provide access to leading benefits and tools: Through large-group buying power, PEOs offer competitive, Fortune 500-level benefits and engagement tools at an SMB-friendly price point.
• Strengthen compliance: A PEO’s risk management team ensures proactive compliance with federal, state, and local regulations.
• Keep clients up to date: PEOs track emerging trends, giving business leaders the insights they need to make informed decisions.

With ExtensisHR, change becomes an advantage

PEOs help SMBs simplify HR and compete with larger organizations, but they’re not all the same. ExtensisHR is designed to support brokers and their clients, pairing boutique-level service with enterprise-level tools and knowledge.

Here’s what sets us apart from big-box PEOs:

• Personalized service: Each customer receives a dedicated Account Manager, HR Business Partner, Payroll Specialist, and Implementation Manager.
• Complimentary recruiting: Full-cycle hiring support to attract top talent, at no additional cost.
• Reliable worksite employee support: Our Employee Solution Center answers phone calls in under 15 seconds.
• Workforce-tailored benefits: Access to Fortune 500-level plans that scale and evolve with your clients.
• Industry-leading accreditations: Including IRS Certified PEO (CPEO), Certification Institute (CI), and Employer Services Assurance Corporation (ESAC), a trio achieved by only 1% of PEOs.
• Broker-friendly philosophy: We prioritize both you and your client’s goals, and your accounts remain completely yours.
• Optional access to 15Five: A performance management platform for one-on-one meetings, pulse surveys, reviews, employee recognition, and more.

The future of work is here. Brokers who help clients navigate it by aligning them with the right partners can strengthen client relationships and drive long-term growth. ExtensisHR is built to be that partner.

Looking for more insights into HR industry changes in 2026? Download “The 2026 HR Outlook: Key Trends Shaping the Next Era” or contact us to learn more about a partnership.

Insights for the conversations clients are already having

Download ExtensisHR’s 2026 HR Trends Report to discover the top changes redefining the workplace this year.