Your weekly briefing on what’s moving in HR and HR technology, written for SME HR teams across Europe.
Big picture: AI in HR is moving faster in headlines than in practice
AI agents dominate this week’s HR technology news, with fresh European funding rounds and a string of AI-led products honoured at this year’s HR Executive awards. Yet McKinsey’s HR Monitor 2026, based on around 1,300 HR professionals and 5,500 employees across ten countries, finds that most HR functions are still in pilot phases and administrative use cases. Only 11% of organisations plan their capabilities over the long term, and Gartner’s survey of 426 chief HR officers points the same way: the biggest predicted productivity gain (29%) comes from evolving the HR operating model, not from buying a tool. The gap between ambition and everyday practice is where most teams sit right now.
Why it matters: you don’t need an AI strategy the size of a large enterprise’s. You do need a clear view of which repetitive HR tasks to automate first and who owns the decision.
On the radar
Pay still drives retention. McKinsey’s HR Monitor reports compensation as the top reason employees stay (52%), ahead of work-life balance (46%) and job security (45%). Employers are only partly addressing these concerns.
Feedback and training gaps. The same research found that 24% of employees report no training at all, and more than half receive feedback once a year or not at all. Regular, lightweight check-ins remain an easy win.
Culture as a performance lever. Gartner reports that organisations embedding their desired culture into daily work see up to a 34% increase in employee performance. It also finds that when change becomes routine, healthy adoption is three times more likely.
Hiring is where AI is landing first. McKinsey notes AI has substantial potential to speed up hiring and improve the candidate experience, provided it’s built into a streamlined process rather than added on top of a slow one.
HR tech watch
Spott raises $21m. The Leuven-based company, founded in 2024, secured a Series A led by Balderton Capital for its AI-native applicant tracking and CRM platform for recruitment agencies. Base10 Partners, Y Combinator and Fortino also took part, and the funds will support international expansion and hiring.
Ahron raises €2.2m. The Munich-based startup, led by Cusp Capital, builds AI agents that automate HR processes as a layer on top of existing HR systems. It reports more than €1m in annual recurring revenue this year and targets large enterprises with fragmented tools.
AI-led products take the awards. HR Executive and HR Tech named 14 Top HR Products of the Year on 15 September 2026, with AI interviewers, sourcing agents and agentic workforce systems prominent among the winners. The winners will be honoured in Las Vegas on 19 October 2026.
For SME HR teams
Start small and practical. Pick one or two admin-heavy tasks, such as onboarding paperwork or leave queries, and measure the hours saved before adding more. Check what your current HR system already offers before buying another tool, and ask any vendor how it handles GDPR and where data is stored. Finally, review your pay positioning and feedback rhythm: both are cheaper to fix than losing a good colleague.
Sources
- McKinsey: HR Monitor 2026, top trends in the people function
- Gartner: 2026 HR trends and top CHRO priorities
- Tech.eu: Spott secures $21m Series A for its recruitment agency AI platform
- Tech.eu: Ahron raises €2.2m to automate HR processes with AI
- GlobeNewswire: HR Executive and HR Tech reveal 2026 Top HR Products of the Year
HR Radar is a weekly informational summary of publicly reported HR and HR technology developments and trends. It is not legal or professional advice.
