As we edge closer to 2025, businesses across the UK are looking ahead to what the new year will bring. For many, a key focus will be ensuring their HR strategies and policies are aligned with both emerging trends and legislative changes. Here’s a guide to help you plan effectively for success in 2025.
Stay Ahead of Legislative Changes
The legislative landscape is constantly evolving and businesses must remain vigilant for upcoming changes. The Employment Rights Bill was introduced to parliament in October and proposed a raft of changes. As we said at the time these proposals were subject to change, consultation and final guidance. The Bill recently reached the committee stage at the House of Commons and a 53 page document of amendments was then produced which further emphasises that nothing is set in stone at present and employers need to be aware that more updates will no doubt follow.
Embrace Flexible and Hybrid Working
Flexibility is no longer a “nice-to-have”; it’s a key driver of employee satisfaction and retention. According to a study by Jabra, 81% of Gen Z workers value flexibility at work above salary. Hybrid working is also now a growing trend as employers and employees have found that working exclusively from home does not have as many benefits as first thought. The results of a recent ONS survey showed that in October 2024, 28% of UK workers were hybrid working. As an employer if you can offer staff greater flexibility in how, when and where they work you are more likely to attract and retain staff and gain a competitive advantage, so a new year presents new opportunities to review your offer to employees in terms of flexible and hybrid working before they start to look elsewhere.
Focus on Employee Wellbeing
The wellbeing of employees should be a priority for employers all year round but employee wellbeing often comes into focus at the start of a new year. According to data from Mind 1 in 4 people experience mental health problems at some point every year and employers can take steps to support their teams with these challenges. It is important to talk to staff and find out what kind of support they actually need and want. That might be simply someone to talk to if they have an issue, so you could look to train a number of your staff to be mental health first aiders. Your employees might want external help as well so implementing or enhancing your employee assistance programme (EAP) would be a good idea. You should also consider taking steps to address financial, physical and social wellbeing, again find out what is important to your team and then any measures you take can make a real difference.
Invest in Upskilling and Development
As industries become increasingly digitised, employers must stay ahead of the technological curve and so providing financial support for training and development of employees is vital. As an employer if you are struggling to recruit or retain staff due to skills issues then in 2025 put in place a dedicated training budget or look to work with local training providers such as FE colleges who can assist your business to explore apprenticeships and other funded training opportunities.
Plan for Economic Uncertainty
With the recent change in the UK government, the imminent change of administration in the USA and continuing conflict in a number of parts of the globe we are living and working in very uncertain times. Businesses need to plan for potential economic turbulence and for HR this means balancing cost control with retaining and motivating your workforce. The new year is therefore a timely opportunity to review your workforce structure and identify areas of strength and weakness. This may lead to restructuring and possibly redundancies depending on the circumstances of your business but being prepared for these eventualities is vital.
Generational Diversity
By 2025, your workforce may span five generations, from Gen Z to Baby Boomers. Each group has unique expectations, from Gen Z’s demand for purpose-driven work to Boomers’ preference for more traditional values and strong work ethics. To ensure you are getting the most out of every employee, your business must actively work to bridge the generation gap, ensuring both younger and older workers are supported and encouraged to collaborate effectively so that all employees can make a positive contribution to your company.
Planning ahead for 2025 doesn’t need to feel overwhelming. By focusing on your people and what your business really needs, you’ll be well-positioned to tackle the challenges and opportunities the new year may bring. Take the time now to assess where you stand and develop an approach that brings together your people plan with your business goals. With proactive preparation, 2025 can be a year of growth and success for you and your business.
Do you have any questions about today’s blog, need help in becoming legally compliant with contracts/policies or can we support you in taking away any people pains to give you peace of mind?
If you answered yes to any of the above, just give us a call at CUBE HR on 01282 678321, or book in a FREE 30 Minute HR Health Check here FREE HR Health Check and we’ll happily give your business a full HR overview with our personal recommendations absolutely FREE!
Why not also check out last weeks blog Planning Ahead
We also have a YouTube channel with loads of handy videos outlining various HR related scenarios.
