For many we’ve welcomed the festive break with open arms, but time will soon be here to consider what 2025 holds, here is a brief overview of what HR related changes and trends you might want to look out for!
Employment Law – Rates Changes
The majority of these will take place in April 2025.
- – National Living Wage / National Minimum Wage
- – National Insurance Increase
- – Statutory Maternity, Paternity, Shared Parental, Adoption, Maternity Allowance, Parental Bereavement Pay
- – Statutory Sick Pay
- – Statutory cap on a weeks’ pay used for calculating basic awards and Statutory Redundancy Pay
Gender Pay Reporting
Whilst this is only a requirement for organisations with 250+ headcount / employees it can be a useful exercise for SMEs to complete to ensure their pay is gender neutral i.e. females are getting the same pay as males based on roles. The deadline for the public sector is 30.03.25 and private / voluntary is the 04.04.25.
If you have locations spread throughout the UK, it can also be beneficial to review based on ONI demographics as well to ensure no disparity of pay.
Employment Law Changes
The changes anticipated to come to fruition are:
- – Day One Rights (Not due until 2026) however will impact; sick pay, unpaid parental leave, paid paternity leave, paid bereavement leave.
- – Unfair Dismissal (Not due until 2026) however, will impact, probation periods and process.
- – Zero Hour Contracts (Not due until 2026) however, will impact; head count, processes for review.
- – Statutory Sick Pay (Implementation date to be confirmed) however will see the removal of ‘waiting days’.
- – Fire & Rehire Restrictions.
- – Trade Union Rights (Implementation date to be confirmed).
Whilst employment law changes aren’t due to come until 2026 there are simple changes that businesses can make this year such as updating policies, processes and contracts of employment whilst not bringing a significant cost.
If that’s the legislation and rates, what about the trends?
1. Prioritising Wellbeing:
Mental Health Focus: SME’s will look to increase support to employees through mental health services, such as Employee Assistance Programmes, Mental Health Awareness Training and Flexible Working Arrangements.
2. Embracing Technology:
HR Tech Adoption: Leveraging HR technology, even on a smaller scale, can significantly streamline processes for SMEs. Consider tools for recruitment, onboarding, performance management, and payroll. This also enables data-driven decisions rather than relying on ‘gut feel’.
3. Upskilling and Reskilling:
Investing in Employee Development: With the rapid pace of technological change, continuous learning is essential. SMEs should invest in training programs to help employees acquire new skills and stay competitive. Whether this is through group or individual development, going back to basics or developing new skills / mindsets it is crucial for business success. As Mikhail Gorbachev once said
If you aren’t moving forward, you are moving backwards.
4. Enhancing Diversity, Equity, and Inclusion (DEI):
Creating Inclusive Cultures: Foster a culture of inclusion where all employees feel valued and respected, regardless of their background. Even small steps, such as unconscious bias training and inclusive recruitment practices, can make a significant impact.
5. Adapting to the Gig Economy:
Managing Contingent Workers: As the gig economy grows, SMEs may need to adapt their HR practices to manage contingent workers effectively, including freelancers and contractors.
Key Takeaways for SMEs:
- – Plan and prepare: for the changes that are coming in over the next 24 months.
- – Embrace agility and flexibility: Be prepared to adapt to changing circumstances and employee needs.
- – Focus on employee experience: Create a positive and engaging work environment that attracts and retains top talent.
- – Invest in technology wisely: Choose HR technologies that meet the specific needs and budget of your SME.
By embracing these trends, UK SMEs can build a strong and competitive workforce that drives business success in the years to come.
Written by Julie Marsh from Apiary Solutions, a member of The Local View Peterborough.
