Strategic Hiring Decisions to Secure the Competitive Edge in 2026
As the labor market recalibrates, Mario Peshev, offers leaders three critical strategies to consider when hiring employees in 2026.
The talent market is a pendulum swinging back and forth with wild abandon, making it difficult for leaders to know when to hire, who to hire and how to structure their teams to maximize resilience. Our hiring process accelerated in 2025, yet we’re swimming in deep waters, having to recalibrate it based on the “new normal” in 2026.
Significant hiring initiatives during the COVID-19 pandemic have given way to mass layoffs as companies grapple with the implications of higher interest rates, the potential impact of artificial intelligence (AI) and slower economic growth projections.
Meanwhile, the US unemployment rate remains persistently (and historically) low, but workers, once eager to change jobs, are staying put. As CNBC recently reported, “Workers are ‘job hugging,’ or clinging to their jobs ‘for dear life.’”
So, what’s happening?
The labor market isn’t facing a steep downturn. It’s undergoing a recalibration fueled by economic uncertainty and technological augmentation.
Before making your next staffing decision, here are three critical strategies to future-proof your workforce:
#1 Re-engineer roles for AI augmentation, not replacement
AI’s current impact on the workforce can be difficult to discern, and separating potential impact from the hype surrounding it is a challenge.
We do know two things for sure:
- Companies are investing heavily in the technology
- Employees are using the technology
The world’s largest companies are spending billions of dollars to develop increasingly advanced AI technologies, and 78% of global enterprises are actively integrating AI into their workflows. Of course, it’s not just the big companies turning to AI. Sixty-six percent of small businesses are investing in adopting and implementing AI solutions.
What this means for overall operational efficiency or individual employee productivity is less clear. Some analyses have found that companies are not increasing productivity or profitability from AI adoption. Simply put, businesses shouldn’t plan to replace their human capital with chatbots. They also shouldn’t ignore AI’s impact and improvement.
The solution is to re-engineer roles for AI augmentation, not human replacement. The key trust factor for leaders is to ensure AI transparency for employees on how AI is used. This also helps reduce risks such as bias, unethical outcomes and regulatory penalties. In fact, 75% of businesses see a lack of transparency as a risk to customer retention. Starting to lead with AI transparency internally with employees first is a must.
It also practically means shifting from task-based roles to impact-defined roles.
To get started, conduct an AI impact audit to identify tasks that consume a significant portion of your employees’ time. Begin designing roles and responsibilities around these tasks, determining which can be fully automated or augmented by AI tools.
#2 Prioritize the hybrid “A-player” and skills over pedigree
For years, the hiring pedigree was fixed. High degrees from better institutions gave potential hires a leg up. Now, that dynamic is changing. Fast.
Already, 25% of employers say they will eliminate degree requirements by the end of 2025, and AI could accelerate this trend as businesses look to integrate different, more agile skills into their workforce. Consequently, companies are looking for individuals who can operate autonomously from day one. They are looking for a combination of technical depth and human expertise.
As one Boston Consulting Group analysis found, “Fluency in AI is becoming essential across roles, alongside systems thinking, problem framing and sound judgment.”
To outpace the competition and find the talent your business needs, reconsider your interview processes. Stop testing for basic technical knowledge. Test how well a candidate uses AI tools to solve a complex problem, and evaluate their proven track record for autonomous execution.
#3 Adopt the fractional model for strategic capability gaps
Today’s top talent is more willing (and eager!) to work in fractional, freelance or gig-based capacities than ever before. As a result, high-caliber talent that was previously unavailable or too expensive for full-time mid-market roles is now accessible through strategic partnerships.
This doesn’t mean you should outsource your entire operations. Core operational staff and company culture can still produce a winning formula. However, keep your core operational and cultural staff internal. For the high-impact, short-burst, or niche projects, use fractional or contract expertise, experienced consultancies and niche agencies. When hiring full-time staff, focus on talent density and identify the top 10% of A-players who can help grow the company.
Building the best team for today and tomorrow
Workforce norms are changing fast. Many leaders are unsure who to hire, when to hire them and what to expect once they are employed.
This isn’t a time for panic. We aren’t in a bear market. It is time to change.
The mandate for leaders now is to drive substantial autonomy, build an impeccable culture and insist on continuous skill upgrades. This moment is painful for those caught off guard, but it is necessary for systemic strength.
Written by: Mario Peshev, CEO of DevriX for Smart Brief.