As colleges and universities prepare for 2026, they encounter a changing environment shaped by demographic shifts, rapid technological advancements, and evolving employee expectations. Recognizing the trends affecting workforce and risk management is crucial, not just for ensuring institutional resilience, but also for remaining competitive in a rapidly changing market.
Cost Pressures in Benefits & Insurance Intensifying
Healthcare costs have long been among the most significant lines in higher education budgets. Medical plan cost trends are projected to increase by a median of 9% – the highest projection in more than a decade, according to the 2026 Segal Health Plan Cost Trend Survey.
Insurance markets for educational institutions are currently becoming more difficult to navigate, due to increasing premiums for certain coverages, a decrease in the number of insurers willing to provide coverage, and stricter terms being implemented.
As cost pressures continue into 2026, institutions may need to redesign their health plans and explore alternative funding or insurance structures, such as self-funding or captives.
Shifting Workforce Expectations & Talent Scarcity Persist
Attracting new talent while retaining current staff continues to be a challenge for higher education and is expected to remain an issue through 2026. In response, many institutions are broadening their recruitment strategies, actively reaching out to candidates from diverse backgrounds by offering flexible job structures and non-traditional employment opportunities.
Creating a people-centric culture is another key priority. Employees today seek workplaces that foster growth, inclusivity, and genuine belonging. HR teams are responding by strengthening diversity, equity, and inclusion (DEI) initiatives, forming employee resource groups, and implementing transparent systems for feedback and career advancement.
Benefits packages have also become a significant differentiator amid a tough talent market. Institutions are enhancing their offerings to support employees’ mental health and overall wellbeing and moving toward personalized benefit options.
Risk Exposures Widening
A diverse and flexible higher education workforce brings new risk considerations. The use of adjunct faculty and remote staff, for example, introduces complexities in legal compliance and liability that are likely to persist through 2026.
Higher education institutions must adapt their risk management frameworks by updating insurance policies and refining onboarding processes for employees working in geographically dispersed locations. There is also growing awareness of the importance of protecting staff and faculty psychological safety. Crisis support resources and the integration of mental health considerations into risk management are now standard practice at leading institutions.
Technology Accelerating HR Capabilities
The integration of AI and automation is revolutionizing operations in higher education. Administrative tasks are being optimized through innovative technology, allowing HR teams to automate key processes such as recruiting, onboarding, and professional development. This shift frees up valuable time for staff and enables more personalized growth opportunities for employees. However, these efficiencies come with challenges.
As institutions strive to do more with less, workloads have increased, making burnout risk a persistent concern. Universities are responding by investing in wellness initiatives, offering flexible scheduling, and providing support staff to help alleviate administrative burdens. In addition, HR is now expected to operate as a strategic partner rather than a purely administrative function. This involves working closely with senior leadership to ensure that talent management aligns with the institution’s mission and long-term goals.
How Higher Education Institutions Can Prepare for 2026
To effectively address these anticipated challenges, higher education HR teams should concentrate on a few practical, high-impact actions now:
- Survey faculty and staff to understand what they value and use those findings to inform total rewards strategies.
- Conduct a risk audit with updated valuations, liability exposures, and policy gaps.
- Invest in innovative HR technology to automate manual processes.
- Consider bringing in external advisory support to supplement internal capacity and avoid blind spots in HR, benefits, and risk strategies.
Connect With CBIZ to Explore Insights That Impact
Investing in HR technology, prioritizing employee wellbeing, fostering an inclusive culture, and modernizing benefits and risk management can significantly enhance an institution’s ability to attract and retain exceptional talent – and stay ahead of the curve.
Ensure your organization is equipped to navigate these trends and emerge stronger in the year ahead. Connect with CBIZ to get prepared.
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