As 2025 draws to a close, HR and business leaders face a landscape shaped by economic shifts, evolving workplace expectations, and new compliance demands. At HumCap’s recent webinar, our team unpacked the trends and strategies that matter most for finishing the year strong—and setting up for success in 2026. Here are some highlights:

Economic & Labor Market Trends

This year, the DFW market continued to outperform national averages, but economic uncertainty remains a top concern for leaders. Unemployment rates in Dallas stayed lower than the national average, creating a competitive hiring environment. At the same time, “job hugging”—employees choosing stability over change—has made retention easier, but recruiting passive talent more challenging. While “job hugging” is on the rise, it creates a possible artificial view of increased retention. With feelings of uncertainty, talent is sticking around longer, but this does not mean they are not thinking about leaving.

Recruiting & Workforce Strategies

Hiring for skills and competencies is more important than ever, especially for middle management roles. Wage growth has slowed, and the average time to fill positions has increased, prompting organizations to rethink their workforce planning and retention strategies. The return-to-office migration is also reshaping the employee value proposition, with companies investing in culture and flexible work arrangements to boost engagement.

AI’s Impact on HR

AI adoption in HR and recruiting is accelerating, but most organizations are still developing their strategies. From automating candidate sourcing to implementing HR “first responder” tools, AI is helping teams become more efficient and focus on strategic priorities. However, human oversight remains essential—especially as AI-generated profiles and applications become more common.

Maintaining a human touch amidst the advent of AI is essential. Companies are racing to implement AI for their businesses – but make sure you have identified your why first. What problem is AI solving for your business? What policies, education, and implementation plans do you have in place to effectively launch AI use with your employees? Ensuring you have a strategic AI plan in place first is key.

Benefits & Compliance Updates

Benefits costs have risen sharply, with some organizations seeing increases as high as 30%, almost doubled from the benefit increases seen nationwide in 2024. Education and wellness programs are key to helping employees make the most of their benefits. On the compliance front, new legislation like the Pregnant Workers Fairness Act, ongoing changes to overtime rules, and evolving noncompete agreement restrictions mean HR teams must stay vigilant. Pay transparency and fairness initiatives are also gaining traction, improving trust and retention.

Opportunities & Action Items

  • Audit your HR processes: Use HumCap’s end-of-year checklist to identify low-hanging fruit and compliance gaps that you can ensure you’re on top of.
  • Review your employee handbook: If you can’t remember the last time your company updated the handbook… it’s overdue. Make sure you do not overlook this important item. Update policies to reflect new legislation and workplace realities.
  • Invest in employee education: Host lunch-and-learns or wellness seminars to help teams maximize benefits.
  • Evaluate your technology: Consider how AI and other systems can streamline HR and recruiting tasks. Make sure you are updating company policies with any new technology you are introducing.
  • Strengthen your culture: Focus on retention strategies and creative benefits to keep your team engaged as workplace expectations shift.

These opportunities are designed to help organizations not just react to change, but proactively build a foundation for growth in 2026.

Your End-of-Year HR Checklist

One of the most popular resources from the webinar was our comprehensive HR checklist—covering everything from benefits renewals and handbook updates to compliance deadlines and technology reviews. It’s designed to help you audit your processes and set clear priorities for the new year.

Click here to download the HR checklist.

Want more recruiting and HR insights and actionable strategies?
Watch the webinar replay here to ensure your team is ready for 2026.