The 2026 work reset: flatter teams, emotional salaries and the rise of ‘LinkedIn envy’

The way we work never stands still and what employees value today looks very different from a year ago. As technology accelerates, expectations around flexibility, fulfilment and progression evolve just as quickly.  

As we head into 2026, businesses face a challenge – adapting emerging employee demands and people strategies to keep pace with these rising changes. Several trends are currently gaining momentum, and together they point to a more fluid, human-centric world of work.  

1. The ‘great flattening’ – faster decisions or growing confusion  

The first trend we are seeing is organisations stripping back layers of management in the name of speed and efficiency. This ‘great flattening’ is designed to cut costs and push decisions closer to where the work actually happens, giving employees more autonomy in the process. 

Done well, flatter structures create momentum and strengthen accountability. Done poorly, they leave teams unsure on who owns what. Removing hierarchy without redefining responsibility doesn’t create empowerment – it creates uncertainty. The organisations that will truly benefit from this shift are the ones investing in clarity, not just cost-cutting. 

2. ‘Emotional salaries’ are as important as financial ones 

With a UK labour market shaped by tighter budgets and economic uncertainty, salary increases are no longer always guaranteed. For people leaders, this has turned retention into a creative challenge rather than a solely financial one.  

An emotional salary reflects everything employees receive beyond their payslip. Flexibility, wellbeing support, inclusive benefits and a sense of purpose, which all contribute to how valued people feel at work. For many employees, these factors now carry as much weight as compensation. Employers that fail to recognise this will struggle to hold onto talent, even if their salaries look competitive on paper.  

3. Putting performance under the spotlight with ‘keeper testing’  

We will also see the ‘keeper test’ emerging as a way to focus on impact. It asks managers to consider whether they would actively fight to retain each member of their team if that person decided to leave. This involves managers looking at the output of an employee and working out their importance to team success, helping identify top talent and providing insight during periods of redundancy.   

This approach brings clarity, but it also raises the stakes. Employees are becoming more aware of how they are perceived and are working harder to demonstrate their value. For organisations, the keeper test only works if expectations are transparent and feedback is regular. Without that, it risks feeling arbitrary rather than fair.