From an HR perspective, this year is less about fundamental change and more about getting the essentials right which involves planning ahead, managing risk and building resilient workforces that can adapt to economic and legislative pressure.

Labour Market 

Northern Ireland continues to experience a constrained labour market. Employment levels remain broadly stable with an employment rate of 72.2% (NISRA.gov.uk, 2025). Recruitment challenges persist, particularly in professional services, health and social care, construction, engineering and manufacturing. Skills shortages have not disappeared; they have simply become more targeted and harder to solve.

Many employers are still recruiting reactively, only to find that the candidate pool is smaller, salary expectations are higher, and time-to-hire has increased. This is compounded by a growing confidence gap among workers. Recent salary and recruitment research shows that career confidence in Northern Ireland is low, yet employee mobility remains high, with many workers actively open to new opportunities where flexibility, progression and targeted benefits are clearer (NIJobs, 2026).
A practical example we see repeatedly is SMEs losing experienced staff to competitors offering marginally better flexibility or clearer development pathways, rather than significantly higher pay. In these cases, the issue is rarely remuneration alone. Moreso, it is the absence of a clearly articulated employee value proposition.

For 2026, employers need to move beyond short-term recruitment fixes and focus on workforce planning, role clarity and internal progression. Businesses that can demonstrate long-term opportunity, realistic workloads and consistent management are far better placed to retain talent in a tight market.

Why ‘HR Housekeeping’ Matters in 2026

For many Northern Ireland employers, legal risk remains underestimated. While day-to-day employee relations may feel manageable, small gaps in policy, process or documentation can quickly escalate into costly disputes.

Recent updates to statutory limits under The Employment Rights Order (Northern Ireland) 2025 refer to increased caps. Examples include enhanced compensation where dismissal is unfair, increasing from £115,341 to £118,455 as well as the weekly cap on redundancy payments increasing from £729 to £749, among other increases (legislation.gov.uk, 2025). These changes directly affect financial exposure during restructures, dismissals and collective consultation exercises.

In practice, we are seeing an increase in claims linked not to malicious intent by employers, but to:

•    poorly managed absence processes
•    unclear redundancy selection criteria
•    inconsistent application of policies
•    managers operating without sufficient knowledge or HR guidance 

An employment tribunal recently awarded over £50,000 in compensation for indirect age discrimination and unfair dismissal to an employee who successfully claimed that his redundancy scoring was discriminatory on the grounds of age, and that his dismissal was unfair due to a botched redundancy consultation process. The tribunal accepted statistical evidence demonstrating that, across the UK workforce, individuals in their 60s are significantly less likely to hold a degree than those in their 30s. As a result, using possession of a degree as part of the redundancy selection criteria placed older employees at a particular disadvantage when compared with younger colleagues. In this case, the claimant was adversely affected by receiving a score one point less due to the absence of a degree, which ultimately contributed to his selection for redundancy. Importantly, the employer was unable to provide objective justification for including this qualification requirement within the scoring framework (hilldickinson.com, 2025).

In 2026, employers should prioritise:

•    reviewing contracts and handbooks
•    refreshing disciplinary, grievance and absence procedures
•    training line managers on lawful decision-making
•    documenting processes consistently

Proactive compliance is significantly cheaper than reactive defence.

Capability, Culture and Wellbeing

Retention remains one of the most pressing HR challenges for NI employers. While pay remains important, it is rarely the sole driver of turnover. Instead, we consistently see resignations driven by workload pressure, lack of development, weak management capability and inconsistent communication.

Research from the CIPD highlights ongoing concerns around workload and burnout across NI, with 67% of employees saying they feel exhausted at work and 28% reporting workload is too much (CIPD, 2025). These issues are often magnified in smaller organisations where capacity is limited`, and roles have expanded organically without formal review.

One Northern Ireland charity faced rising absence levels and disengagement in 2025. The issue was not commitment, but rather role overload and unclear priorities. Through job redesign, manager coaching and clearer boundaries around workload, absence reduced without increasing headcount.

For 2026, organisations should be asking:

•    Do our roles still reflect reality?
•    Are managers equipped to manage the people, not just tasks?
•    Is wellbeing embedded in how work is structured, not just offered as a benefit?

Investment in learning and development, particularly for line managers, remains one of the most effective ways to stabilise teams and reduce risk.

Conclusion

For NI businesses, 2026 is not a year for drastic HR reinvention as seen previously with the pandemic and Brexit. It is a year for clarity, consistency and confidence. Employers who look ahead by reviewing their workforce plans, tightening compliance, and investing in management capability, will be better positioned to navigate labour shortages, retain talent and manage risk.

Sources:

https://www.nijobs.com/recruiters/recruiters-news/nijobs-salary-and-benefits-trends-2026/
https://www.nisra.gov.uk/news/labour-market-report-march-2025?
https://www.legislation.gov.uk/nisr/2025
https://www.legislation.gov.uk/nisr/2025
https://www.cipd.org/en/about/press-releases/master-press-release3
https://www.hilldickinson.com/our-view/articles/redundancy-discriminatory-scoring-criteria-and-botched-consultation/

AAB
Telephone: +44 (0)28 9024 3131
Website: https://aab.uk/