Why businesses need HR support in 2025 more than ever
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Posted: Wed 2nd Apr 2025
6 min read
As we steadily advance into the mid-2020s, the business landscape transforms with advancements in technology, evolving workplace norms, and significant changes in employment law.
Particularly for small to medium-sized enterprises (SMEs), which have historically been agile and adaptive but often under-resourced in supporting roles like human resources (HR), staying ahead of these changes is crucial. A pressing concern in 2025 is the increased necessity for businesses to have access to expert HR support.
Current landscape: SMEs and limited HR resources
In today’s competitive market, many SMEs function without comprehensive HR resources, often due to budget constraints or the belief that their size or structure does not necessitate dedicated HR personnel. Instead, they rely heavily on free resources available on the internet. While navigating online resources for information might seem sufficient, this strategy poses significant risks as laws and regulations evolve. The bespoke expertise that HR professionals bring — adapting guidance to specific business contexts — is irreplaceable.
Changing face of employment law
Around the corner lie transformative changes to employment law that no business, small or large, can afford to overlook. The anticipated amendments, such as Day 1 employment rights and the proposal for Statutory Sick Pay (SSP) to be applied from day one, imply substantial shifts in employer responsibilities.
Missteps in implementing these changes can lead not only to financial penalties but also damage to a company’s reputation and employee relations.
Day 1 employment rights
The introduction of Day 1 employment rights signifies that employees are entitled to certain rights from the moment they commence their employment. This change enhances worker protections and aligns with Labour's focus on growing advocacy for employee wellbeing and equity.
However, for business owners navigating this new territory, a multitude of questions arise:
What are the exact rights to be granted?
How does this policy align with existing contracts or probationary periods?
Statutory Sick Pay from Day 1
Historically, SSP has been subject to a waiting period before payments commence. The elimination of this waiting period requires businesses to reexamine their payroll systems and budget allocations.
For businesses operating on tight margins, these changes could critically impact financial planning and forecasting. At the very least, having a more robust absence management system will become crucial to manage sickness absence fairly.
Implications of getting it wrong
While the business implications of non-compliance can be daunting enough — fines, legal battles and disruptions — the human element must also be considered.
Neglecting proper HR management can result in lower employee morale, increased turnover and difficulties attracting talent. Furthermore, in the age of digital communication and social media, negative reviews or perceptions can quickly escalate into full-blown public relations challenges.
Crucial role of HR support
Given these potential pitfalls, there has never been a more critical time than 2025 for businesses to invest in HR support. That in itself can be a minefield with a huge variety of outsourced options; the fit needs to be right for your business, and a more proactive approach from an HR provider will more than pay for itself.
Here are some of the benefits a proactive HR partnership can bring:
1. Compliance and risk management
HR professionals not only ensure compliance with the workforce’s new legal standards but also pre-emptively manage risks associated with employee relations. Their in-depth knowledge of employment law enables them to provide strategic guidance on contract development and dispute resolution, helping businesses maintain legal standing and promote stable employee relations.
2. Strategic workforce planning
Beyond compliance, HR support expands into workforce planning, guiding businesses in creating conducive environments for retaining top talent and fostering productivity. With updated knowledge of employment laws, HR can implement employee-centric policies, aligning personnel strategies with business goals, thereby enhancing overall organisational health.
3. Enhancing company culture
HR is pivotal in cultivating a strong, positive company culture. From implementing robust onboarding programmes that highlight the company’s ethos and compliance standards to developing ongoing training initiatives, HR ensures that employees feel valued, engaged and well-equipped to contribute to the company’s success. This proactive approach cannot be replicated by sporadic reliance on internet resources.
4. Flexibility and proactivity
An overlooked advantage of professional HR support is flexibility and the ability to adapt swiftly to both anticipated changes and unforeseen challenges. HR professionals are equipped to interpret legislative changes rapidly, providing tailored advice and solutions to anticipate industry trends. This agility is often missing when dealing solely with internet-sourced information.
5. Leveraging digital HR solutions
For SMEs still hesitant about incurring the costs of dedicated HR departments, digital HR solutions offer a hybrid approach. Leveraging human expertise combined with technological efficiency allows businesses to access up-to-date regulatory information and communicate with HR professionals when necessary.
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