Folks Unveils 2026 State of HR Report
•February 18, 2026
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Why It Matters
The report underscores how AI and tech are reshaping HR for Canadian SMBs, guiding strategic decisions and competitive positioning.
Key Takeaways
- •Survey covers 400+ Canadian SMBs across multiple HR dimensions
- •Recruitment remains top priority for SMBs in 2026
- •AI usage in HR processes is rapidly increasing
- •HR tech adoption improves employee experience but integration challenges persist
- •Report offers actionable insights for SMBs to stay competitive
Pulse Analysis
The 2026 State of HR Report arrives at a pivotal moment for Canadian small and medium‑sized enterprises. As talent shortages tighten, recruitment strategies have become a central focus, prompting firms to explore innovative sourcing channels and employer branding tactics. By aggregating responses from a broad cross‑section of SMBs, Folks provides a granular view of the pressures shaping hiring pipelines, offering benchmarks that managers can compare against their own performance.
Artificial intelligence is moving from experimental pilots to core HR functions, according to the report. Companies are deploying AI for resume screening, predictive turnover modeling, and personalized learning recommendations, which accelerates decision‑making and reduces administrative overhead. However, the data also highlight integration friction, as legacy systems often clash with newer platforms, limiting the full potential of AI‑driven insights. Vendors that deliver seamless, modular solutions stand to capture a growing share of the market.
For decision‑makers, the report serves as a strategic playbook. It outlines concrete steps to enhance employee experience through digital tools, from self‑service portals to real‑time pulse surveys, while emphasizing the need for change‑management frameworks that address cultural resistance. By leveraging these findings, SMB leaders can prioritize technology investments that deliver measurable ROI and future‑proof their workforce operations. The broader implication is a more data‑informed HR function that can adapt swiftly to evolving labor dynamics.
Folks Unveils 2026 State of HR Report
Folks, a leading Canadian HR software solution provider, has announced the release of its highly anticipated 2026 State of HR Report. This comprehensive study surveys more than 400 small and medium‑sized businesses (SMBs) across Canada, offering valuable insights into the evolving landscape of human resources.
The report delves into critical areas such as recruitment trends, the integration of artificial intelligence in HR processes, technology adoption, employee experience, and the main HR challenges anticipated for 2026. By examining these key aspects, Folks aims to give SMBs the knowledge they need to navigate the future of HR effectively.
“The 2026 State of HR Report is a testament to our commitment to empowering small and medium‑sized businesses with the tools and insights they need to thrive,” said Jimmy Plante, CEO of Folks. “As the HR landscape continues to evolve, it is crucial for organizations to stay informed and adapt to new trends and technologies.”
“Our findings highlight the increasing role of technology and AI in HR, as well as the growing importance of enhancing employee experience. We believe that by understanding these trends, SMBs can better position themselves for success in the coming years,” he added.
The report reveals that recruitment remains a top priority for Canadian SMBs, with many organizations seeking innovative ways to attract and retain talent. The use of AI in HR processes is also on the rise, with businesses leveraging technology to streamline operations and improve decision‑making.
Additionally, the study highlights the significance of HR technology adoption in enhancing employee experience and increasing efficiency. SMBs are increasingly investing in digital tools to support their workforce and foster engagement, but some report issues with integration capabilities.
Folks’ 2026 State of HR Report serves as a valuable resource for SMBs looking to stay ahead of the curve. By providing a comprehensive overview of current trends and challenges, the report empowers organizations to make informed decisions and drive positive change in their HR practices.
You can download the 2026 State of HR Report and access the full findings right here.
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