The great workforce adaptation: navigating 2026 together

tl;dr

• 100% of UK business leaders expect growth this year, but only half of talent share that optimism.
• 78% of UK employers agree the traditional linear career path is outdated. Talent is prioritising variety over tenure.
• While employers expect AI to impact 75% of tasks, 60% of talent believe it will have limited impact on their current role.
• 76% of talent report a strong relationship with their manager—an 8% jump from 2025—proving human connection is our stability anchor.

If the last few years have taught us anything, it’s that the only constant is change. But as we step into 2026, we aren't just seeing change; we are witnessing a fundamental contradiction in the world of work.

On one side, business leaders are brimming with optimism. In fact, our latest Workmonitor 2026 research reveals that 100% of UK employers are confident in the growth of their business this year. That is a remarkable figure, even higher than the global average of 95%.

Yet, look at the workforce, and the picture is different. Only just over half of talent shares that optimism. This "confidence gap" is a structural risk, but also a massive opportunity. We call this moment The Great Workforce Adaptation. It’s the shift from simply managing talent to actively realigning with them, and building a partnership where businesses and people grow together.

Here is what you need to know to bridge that gap and unlock growth for everyone.

the end of the linear career ladder.

For decades, success was a straight line: you joined a company, you climbed the rungs, and you stayed put. That era is over.

In 2026, 78% of employers in the UK agree the linear career ladder is outdated. Talent is no longer looking for "jobs for life"; they are building "portfolio careers". They are mitigating their own risks by seeking security through variety rather than tenure.

This isn't about a lack of loyalty. It’s about a desire for self-defined success. While pay remains the top attractor (83%), work-life balance (51%) is now the greatest lever for retention. Talent wants autonomy, and they want their work to fit their lives, not the other way around.

The takeaway: Don't just offer a job; offer a journey. Support fluid, non-linear career paths. If you can help your people build a diverse portfolio of experiences within your own walls, you’ll secure the loyalty that comes from genuine partnership.

closing the ‘AI blind spot’.

We talk a lot about AI, but our data exposes a disconnect in how we perceive its impact.

We see a clear "AI blind spot". Employers expect AI to impact 75% of tasks, yet 60% of talent believe it will have a limited impact on their current role. This denial leaves talent vulnerable. If they don't see the change coming, they can't prepare for it.

Interestingly, talent is already using these tools; sometimes in isolation. 45% of talent now use AI for work advice instead of consulting their manager.

We need to shift the narrative from threat to augmentation. AI isn't a rival to labour; it’s the key to unlocking the "human" value that only people can provide.

The takeaway: Be transparent about AI’s impact to help talent move from denial to preparation. We need to move from "AI anxiety" to "AI fluency," proactively upskilling teams to become the human teachers in the loop.

managers are the key to stability.

In an ever increasing tech environment, human connection becomes the premium currency.

Despite the rise of AI coaches, the bond between talent and their direct managers is strengthening. 76% of talent say they have a strong relationship with their manager, significantly up by 8 percentage points from 2025.

With ever increasing macroeconomic volatility, managers have emerged as both stability anchors and trust builders. They are the ones who unlock the potential of your teams.

the multigenerational advantage.

Our workforce is more diverse in age than ever before, and that is a productivity superpower waiting to be tapped.

94% of employers believe multigenerational teams improve productivity. It’s a beautiful exchange: Gen Z teaches tech fluency to older generations, while Baby Boomers transfer critical industry judgment and institutional knowledge to Gen Z.

However, collaboration is being put to the test. 76% of employers say remote or hybrid work has made collaboration more challenging. The answer isn't necessarily a full return to the office, but rather finding intentional ways to bring these five generations together to broaden perspectives.

what’s next?

The year ahead is about closing the gaps—between employer optimism and talent wariness, between AI expectations and reality, and between the desire for flexibility and the need for connection.

By embracing this Great Workforce Adaptation, we can turn uncertainty into a shared engine for growth.