Top employee engagement trends in 2026

With AI adoption, economic uncertainty and workforce shifts, 2025 was a year of rapid transition. As HR leaders enter the new year, it’s essential for teams to stay aware of trends in employee engagement. 

Employees want their voices to be heard and their values reflected in where they work. Having their needs met through workplace flexibility, smart AI adoption and recognition can make the biggest difference to an employee’s sense of purpose. 

Human-centered flexibility becomes the standard 

Rather than a one-size-fits-all approach, managers are embracing workplace flexibility to best support employees. When employees are engaged and satisfied with their work-life balance, they’re able to focus on their best work. It also attracts potential candidates. 

Julian Lute, Insights & Innovation Strategist at Great Place To Work^®, said it best on a recent episode of ITA Group’s "Love your people" podcast. “When we think about all the leadership behaviors that a leader can embody on a day-to-day basis, you have to start with listening.” 

“People want to feel seen,” he added. “They want to feel heard. They want to feel valued.” Workplace flexibility means listening to employees and understanding how to help them perform at their best. 

The creativity, collaboration and nuanced communication employees bring are an organization’s best asset. To make the most out of new tech, workplace policies and their employees’ skills, organizations are embracing human-centered design.  

Whether it's working hybrid, remote or in-person, human-centered flexibility is the common thread. For example, an organization might require a return-to-office policy, while managers allow work-from-home days to help employees balance life responsibilities. Or with AI adoption impacting efficiency and restructuring roles, a manager might direct an employee to take a few learning and development courses to upskill.  

Incorporating AI into recognition and engagement 

The AI boom is, without a doubt, making human-centered design a top 2026 employee engagement trend. As AI adoption matures within teams (like preferences on closed vs. open AI, and ChatGPT vs. CoPilot), organizations will see results when they pair AI with human intelligence. 

Instead of accepting AI results as is, the most successful experiential teams understand how their employees’ capabilities and experience pair with the emerging tech. Teams aren't being replaced by AI. Instead, business leaders see their people as the competitive advantage. 

Within your recognition and rewards program  

Thanks to AI adoption and upgrades in employee engagement platforms, like ITA Group's Cooleaf platform, organizations are sending stronger recognition than they were a year ago. Dare we call it “Recognition 3.0”? 

AI streamlines how teams craft recognitions and how HR teams and business leaders plan their programs. Emerging tech, like ITA Group's AI recognition assistance tool, helps users craft meaningful recognition. It offers prompts, similar to the TIPS framework, ensuring recognition includes details that create better impact.

With business leaders and HR professionals advocating for more recognition by team members, many are embracing employee engagement as part of that business strategy. That means pulling data from existing employee initiatives and using predictive analytics to inform next steps. 

Many recognition platforms offer ways for teams to track recognition metrics. That could include recognition issuance, value-based recognition or a manager issuance leaderboard. Using AI, organizations can more accurately predict key benchmarks, such as potential churn or employee sentiment. 

Related: How to leverage AI in your employee engagement strategy

Upskilling with maturing AI workflows 

During times of change, learning and development becomes more important than ever. 59% of employees agree, identifying professional development as the best way to drive performance. 

It goes beyond upskilling. Learning paths are a form of recognition that champions employees and instills confidence. It's a 2026 employee engagement trend for a reason: rapidly evolving AI. Leaders and managers not only need to help their teams adapt to ongoing tech changes but also keep up with the market. 

60% of employees view upskilling as a way to perform better in their current roles. This past year saw AI use mature, with more organizations integrating it into knowledge bases and collaborative functions. However, not all organizations have a strategic foundation for AI adoption. In Canada, while 54% of organizations reportedly use AI on their teams, 59% admit they lack the resources or training needed to use AI effectively. 

Over time, we'll have a better understanding of how organizations can incorporate generative tech into their workflows and business strategies. For now, brands can use this opportunity to help team members familiarize themselves with the tools and offer ways to bridge the tech into their existing workflows.

Creating community, belonging and purpose 

Community-driven initiatives will remain an employee engagement trend in 2026, especially as more brands rely on AI. Public perception of AI use is divided, and how businesses roll out AI initiatives can impact consumer trust and employee brand. Diversity and inclusion will be more important than ever as teams discuss new policies and ethical considerations for AI use and adoption. 

For example, many hiring managers use AI to streamline processes, such as reading resumes or scheduling interviews. However, recent studies have shown that hiring biases pervade language learning modules (LLMs) like ChatGPT. As a result, AI in hiring becomes a disadvantage for candidates of different races or genders, or those with accessibility needs. 

AI is as good as the information and prompts it has access to. Many LLMs have certain biases due to constant updates and the open-source data they can access. For businesses to thrive and address a breadth of customer or client needs, organizations need to embed inclusion and belonging into their company culture. 

That might look like casting a wider net for hiring or working with community institutions, such as Historically Black Colleges and Universities or diverse guilds. It might look like involving ERGs at different points in the production process. Either way, community, belonging and purpose still have a place in employee engagement.

Focusing on total well-being to drive success 

70% of employees are worried about world affairs. So it’s no wonder HR teams are tasked with building resilient teams. 

Continue to nurture workplace environments to cater to total well-being: physical and mental health, emotional, social, financial and career support. 

When team members feel safe and supported, they're more likely to perform better and collaborate more. Employees feel that organizations are making an effort, and 32% report they're less likely to leave a role if they're thriving at an organization.

What's your employee engagement status? 

If 2025 was a year of constant change, 2026 is a year of transformation. Organizations have been through a lot of uncertainty and pivots, and it's time to take those lessons learned into a clear strategy. 

Teams that embrace both AI and human intelligence, invest in team member belonging or incorporate recognition, see growth and development. Now isn't the time to be left behind. Now's the time to look at those employee engagement trends and plan for a strong, smarter year.

Take a look at your own employee engagement with ITA Group's connected culture assessment.