Five Strategic Steps Employers Should Take in 2026 to Maximize Workforce Value

As employers prepare for 2026, many are focused on stabilizing their operations, strengthening compliance, and improving the employee experience. Whether your organization is a growing small business, a mature enterprise, or something in between, now is the time to make intentional updates that support both immediate needs and long-term strategic goals.

The following five steps can help employers maximize workforce value, reduce legal and operational risk, and promote a healthy, sustainable organizational culture in the year ahead.

Step 1: Reassess Organizational Structure and Future Scale Plans

Organizations often evolve faster than their internal structures. Roles shift, responsibilities change, and reporting chains develop informally over time. Conducting a thoughtful review of your organizational structure in 2026 can help ensure that your teams remain aligned with business goals and are poised for the next phase of growth.

This review should include an analysis of leadership coverage, workflow design, communication channels, and future business plans. Consider anticipated hiring, new service lines, geographic expansion, and hybrid-work changes. A structure that once served the organization well may no longer be the best fit—especially if the company has scaled quickly or experienced turnover.

Engaging department leaders in the review process encourages transparency and helps identify practical adjustments that strengthen efficiency, collaboration, and accountability.

Step 2: Re-evaluate Employee vs. Independent Contractor Classifications

Worker classification remains one of the most common and costly sources of liability. Federal and state agencies continue to refine and enforce classification standards. The safest approach for 2026 is to take a fresh look at how your organization engages workers.  A classification audit should:

• Compare each role or contractor relationship against applicable federal and state tests
• Evaluate the degree of control and independence, as well as the economic realities of the day-to-day
• Review written agreements for accuracy and enforceability
• Assess whether contractors have evolved into de facto employees over time

Misclassification risks include back wages, tax exposure, penalties, and in some cases, personal liability for decision-makers. A proactive review provides clarity, reduces risk, and ensures that your talent model aligns with legal requirements and operational needs.

Step 3: Conduct a Compensation Equity, Market Competitiveness, and Restrictive Covenant Analysis

Compensation strategy and talent protection mechanisms must work together. In 2026, take a comprehensive approach by evaluating pay equity, market competitiveness, and your organization’s use of restrictive covenants.

Equity Review
Review pay ranges across positions, identify potential disparities based on protected categories, and evaluate consistency in hiring salaries and merit increases. Documenting how pay decisions are made strengthens transparency and compliance and mitigates against claims of discriminatory pay practices. 

Market Competitiveness Review
Compensation has fluctuated significantly across many sectors in recent years. Benchmarking salaries and benefits against current market data in your geographic region helps employers remain competitive, attract talent, and plan future adjustments with confidence.

Restrictive Covenant Review
Although employers can enjoy both Florida’s newly enacted CHOICE Act and the state’s long-standing robust statutory framework for restrictive covenants under Section 542.335, Fla. Stat., non-compete, non-solicitation, and confidentiality agreements continue to remain under increasing legal scrutiny, and 2026 may bring further changes. Review whether your restrictive covenants remain compliant, enforceable, and appropriately tailored in scope and duration.  Even organizations that do not use non-competes should evaluate non-solicitation, confidentiality, invention assignment, and customer-protection provisions to ensure they reflect current business needs.

A combined review of equity, competitiveness, and restrictive covenant strategy creates a more stable, legally compliant, and well-protected workforce.

Step 4: Update the Employee Handbook to Reflect Legal and Workplace Changes

An employee handbook should be a living document, not a “set it and forget it” item. As legal requirements, workplace technologies, and internal policies change, your handbook must keep pace.  For 2026, ensure your handbook reflects:

• State and federal legal updates from the past year (and prior years if your handbook has not been updated recently)
• Evolving expectations around remote and hybrid work
• Updated leave policies and benefits (pro tip: as your employee headcount grows, so does your obligation to provide certain job protections and benefits!)
• Anti-harassment and anti-discrimination standards
• Technology use, AI policies, and data privacy considerations
• Clear reporting procedures for concerns or complaints

A well-crafted handbook protects the organization, provides clarity to employees, and promotes a consistent, fair workplace culture. Equally important is communicating updates effectively—employees should receive revisions promptly and acknowledge them in writing.

Step 5: Develop a Comprehensive Training Plan for Managers and Supervisors

Managers and supervisors are often an organization’s front line—they set the tone, shape culture, and carry out many of the policies that protect the business. Yet they are frequently the most undertrained group within a company.  In 2026, employers should implement consistent training that covers:

• Legal basics (discrimination, harassment, accommodation, FMLA, wage and hour)
• Performance management and documentation
• Coaching and communication skills
• Conflict resolution
• Handling complaints and knowing when to escalate issues
• Managing remote or distributed teams

Effective training does not have to be overly time-consuming or expensive. What matters most is consistency and relevance. Quarterly, semiannual, or annual sessions can build confidence, reduce risk, and meaningfully improve the employee experience.

Steps 1 through 5 = Success in 2026

Taking these five steps will help employers reduce risk, strengthen culture, and create a more engaged, productive workforce. While each initiative can stand alone, their value is greatest when approached holistically. By investing now in structure, compliance, compensation, communication, and leadership development, organizations can start 2026 with clarity and momentum – making the workforce its greatest asset, rather than its greatest liability. 

The Lowndes Labor & Employment team regularly assists clients with comprehensive counsel and planning across each of these topics.  Our team looks forward to your call to discuss your company’s 2026 workforce plan.