HR Priorities for the New Year: What Should Be on Your 2026 Agenda?

For nonprofits and small businesses, the start of a new year is often a balancing act. You’re managing tight budgets, small teams, and big expectations while staying focused on your mission or growing your organization. HR may not always feel like the top priority, but the right people practices can make or break your success in 2026.

As the new year begins, here are the key HR priorities nonprofits and small businesses should consider when setting their 2026 agenda.

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Align HR Efforts With Your Mission and Business Goals

In smaller organizations, HR strategy needs to be intentional. Whether your focus is expanding programs, stabilizing operations, or improving sustainability, your people strategy should support those goals.

For 2026, consider:

• Clarifying how staffing levels support your mission or growth plans

• Identifying critical roles that directly impact service delivery or revenue

• Setting realistic HR goals that align with capacity and budget

When HR is aligned with your mission, every decision has greater impact.

Plan Ahead for Hiring—Even If You’re a Small Team

Nonprofits and small businesses often hire reactively, which can lead to rushed decisions and burnout. Workforce planning—even at a very basic level—can help you stay ahead.

Key focus areas include:

• Anticipating turnover or seasonal staffing needs

• Identifying roles that are difficult to fill or replace

• Cross-training employees to reduce risk when staff leave

• Building simple talent pipelines before positions open

Planning ahead helps reduce disruption and keeps your organization moving forward.

Simplify and Strengthen Performance Management

Formal performance systems can feel overwhelming for small teams, but performance conversations are essential—especially in cases where resources may be limited.

In 2026, focus on:

• Setting clear expectations and goals at the start of the year

• Encouraging regular check-ins instead of once-a-year reviews

• Connecting performance feedback to development, not just evaluation

• Ensuring job descriptions reflect actual responsibilities

Clear expectations and ongoing feedback help employees stay engaged and accountable.

Focus on Retention and Engagement With What You Have

Nonprofits and small businesses can’t always compete on pay—but culture, flexibility, and purpose matter more than many leaders realize.

Practical engagement strategies include:

• Recognizing employee contributions consistently

• Supporting managers in building strong relationships with their teams

• Addressing workload and burnout concerns early

• Asking employees what helps them stay (and acting on it!) by conducting stay interviews

Retention saves time, money, and energy that smaller organizations can’t afford to lose.

Review Policies and Stay Ahead of Compliance Risks

HR compliance can feel intimidating, especially without dedicated HR staff—but small organizations are not exempt from employment laws.

Early-year priorities should include:

• Reviewing and updating employee handbooks and policies

• Staying informed about employment law changes that affect your organization, such as minimum wage requirements

• Training supervisors on policies and proper documentation

• Ensuring consistency in how debating issues, leave, and accommodations are handled

Proactive compliance helps protect your mission, leadership, and staff.

Support and Train Managers—Even Informally

In nonprofits and small businesses, managers are often promoted because they’re great at their jobs—not because they’ve been trained to lead people.

In 2026, prioritize:

• Supporting first-time or overwhelmed managers

• Providing tools and training for handling performance, conflict, and communication issues

• Coaching managers on leading with empathy and accountability

• Reducing the number of HR issues that escalate due to lack of training

Stronger managers = stronger teams.

Promote Well-Being in Sustainable Ways

Well-being doesn’t have to mean expensive programs. For small organizations, it’s often about setting realistic expectations and modeling healthy behaviors.

Focus on:

• Encouraging boundaries and reasonable workloads

• Promoting flexibility where possible

• Normalizing conversations about burnout and stress so staff feel comfortable sharing their feelings

• Ensuring employees know what benefits and supports are available

Sustainable work practices help employees stay engaged for the long term.

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You don’t need a large HR department to build strong people practices. With the right priorities, nonprofits and small businesses can create workplaces that are compliant, supportive, and aligned with their goals.

Need Support Setting Your 2026 HR Agenda? Cause Capacity specializes in HR support for nonprofits and small businesses. 

Whether you need help reviewing policies, strengthening manager practices, improving retention, or building an HR roadmap for the year ahead, we’re here to help.

Reach out to Cause Capacity to start 2026 with HR strategies that support your people—and the work you do.