Collage HR Trends for Q1 2026:

1. AI Confusion for Employers and Employees

In 2025, the focus was on the opportunities with AI. It was perceived that AI automation can help businesses everywhere thrive. Then big tech companies disclosed that they are spending hundreds of billions on AI and the market got scared. There is a clear upside for employers and also a clear downside given the amount of money required. Canadian tech darlings Shopify and Constellation Software have been questioned by investors over their businesses being disrupted, despite their fundamental businesses continuing to perform very well. Smaller companies are seeing similar concerns on their own scale. Some technology company investors, especially in the SaaS (software-as-a-service) space, are seeing AI as a replacement.

Employees are not having it any easier. 46% of Canadians fear that their jobs will be eliminated by AI. That number rises to 55% for Gen Z. More than half of employees are asked to use AI at work in some way. AI generated “workslop” is frustrating for all but is easy to create.

We are in a confusing place. Where do we go from here?

‍Our Recommendation: As an employer and manager, give clear guidance on how to use AI. The issue continues to be about vague guidance and unclear expectations. As an employee, accept that AI will be part of your job in five years (and sooner). Have an open mind and try to Think Again, as Adam Grant would say.

2. Change Fatigue

It feels like six years of sprinting. Pandemic, return-to-office (RTO), AI, tariffs, layoffs, and more. All of these made organizations change direction, often multiple times. It has been exhausting for people in the workforce who are looking for some sense of stability. Changing priorities creates additional work, reduces velocity, and can reduce trust.

Our Recommendation: As an employer, define the things that are important to your organization and overcommunicate them. Align the full team and then decide how to get from where you are today to that state. If your business strategy has evolved, make that clear. This is a great opportunity to excite your team.

3. Job Hugging

Despite change fatigue and frustration with employers, job hugging has become more common. This is the concept where there is a focus on job stability, with fear of market dynamics keeping employees in their roles. 57% of employees in the US identify themselves as job huggers. The Canadian job market is tough right now, with the economy losing 25,000 jobs in January. In Ontario, employment fell by 67,000. Finding a new job is not easy for many. Starting a new job can also make you vulnerable to a change of mind by the new employer.

Our Recommendation: As an employer, use this as an opportunity to build a better relationship with your employees. Inspire your staff and align them on the mission. Connection to and at work can help drive better outcomes for all. As an employee, try to learn skills that will be useful down the road. AI is one simple opportunity, where it doesn’t hurt to try. Adding more value to your current employer can create opportunities with them or other employers in the future.