New MRA Survey Shows Employers Facing Tight Balancing Act in 2026

Rising Costs, Talent Pressures, and Strategic Recalibration

Waukesha, WI — MRA – The Management Association released findings from its Hot Topic: HR Trends for 2026 survey, revealing that employers are entering the new year navigating a complex mix of financial pressures, talent challenges, and shifting business strategies. The results, drawn from 253 participating organizations, highlight an environment in which leaders are being asked to control costs while still developing the workforce capabilities necessary for long-term success.

Economic Pressures Force Difficult Workforce Decisions

A majority of surveyed employers report increasing concern about rising operating expenses. Sixty-three percent cite the increased cost of benefits as a significant business concern for 2026, while many also point to wage pressures and broader economic uncertainty. These concerns are already shaping decision-making: 41% of organizations have enacted permanent staff reductions, 34% have implemented a hiring freeze, and 21% are pausing merit increases as they prepare for the year ahead.

These data points reflect the difficult reality many employers are facing. Organizations are making careful, sometimes painful choices to stay financially resilient while still preparing for what their people and business will need next.

Brittany Rittershaus, Surveys Manager, MRA

Talent Concerns Persist Amid Cost Controls

Even as hiring slows in some organizations, employers continue to express concern about their ability to attract and retain talent. More than half of respondents reported being highly concerned about recruiting qualified candidates, retaining employees, and developing future leaders. Despite budget tightening, 71% of organizations say they are still hiring—albeit more selectively—and 59% are investing in automation to offset labor shortages and improve efficiency.

For many employers, the focus has shifted from acquiring talent quickly to ensuring that new hires are a strong fit and supported by improved internal processes. Enhancements to onboarding and employee experience are emerging as priorities as organizations work to stabilize and strengthen their teams.

Business Strategies Shift Toward Efficiency and Leadership Development

When asked about long-term strategy, respondents indicated a mix of caution and targeted investment. While 32% say their organization is maintaining the status quo for now, others are pursuing structural or strategic adjustments: 25% are reorganizing department responsibilities, 21% are recruiting only for business-critical roles, and 18% are exploring new markets or service lines.

Leadership development stands out as a clear priority for 2026. Sixty-four percent of organizations are focusing on identifying and developing future leaders, and 60% are investing in employee training and upskilling as they adapt to changing workforce needs.

Leadership readiness is becoming a defining differentiator. Organizations recognize that strong internal talent—supported, trained, and prepared—will determine how effectively they can respond to ongoing change.

Kate Walker, Vice President of Learning & Development, MRA

About MRA

MRA – The Management Association is the largest employer association in the nation, serving more than 5,000 organizations. For 125 years, MRA has partnered with business leaders to provide HR expertise, compliance resources, training, and data and insights that allow organizations to make intelligent decisions.

For more information or to request the full survey report, visit mranet.org/surveys

Contact:

MRA Surveys
[email protected] 
800.488.4845, ext. 3508