Are Your HR Strategies Ready?

Reflecting on 2024, companies faced a number of changes in connection with their HR processes, including:

• Flexible working
• Carers leave
• Paternity leave
• Tipping
• Protection from redundancy (Pregnancy and Family Leave)

These changes in legislation required companies to review their internal policies and to communicate the updates to their employees. 

To avoid any misunderstanding relating to entitlements and employee protection, companies are required to communicate their policies to employees. Communication includes making managers aware of employee rights. If managers were to miscommunicate the company’s policies, then this may lead to a costly tribunal claim.

The Worker Protection Act: Addressing Workplace Harassment

In addition to these legislation updates, on 26 October, the updated Worker Protection Act came into force, that requires a new duty on employers to protect their employees against sexual harassment during the course of their employment. The act provides for a positive duty on the employer to take reasonable steps to prevent sexual harassment in the workplace during the course of the employees employment.  Employers are required to:

• Provide a policy stating a zero tolerance of sexual harassment, including examples of sexual harassment, the process of raising a complaint, and the support provided
• Conduct training to all employees to recognise sexual harassment
• Carry out a risk assessment to recognise the potential risk to employees

Our team of HR Consultants and Employment Lawyers have been providing advice to our clients to raise the awareness. Policies have been provided to communicate to employees, risk assessment drafted to identify the risk to protect employees, and training has been conducted to management groups, and employees. 

There is an alarming number of sexual harassment allegations in the press. Companies play a major part in designing a culture that is free from any form of bullying and harassment, and to provide a safe place to work.

The Labour Party’s Proposals for Employment Legislation

We also saw the Labour Parties ‘Make work pay’ manifesto which led to the proposal of employment legislation changes. Dates of the proposed new legislation have not yet been confirmed. We are expecting to see a considerable number of legislation changes that will impact employers over 2025/2026 – Nockolds HR will update when we know more. Here are some of the employment areas being discussed:

• Making unfair dismissal a day one right
• A review of exploitative zero hours contracts
• Making paternity, unpaid parental and leave a day one right
• Extending the time limit from three months to six months when bringing an Employment Tribunal claim

Pay Awards

It has been reported that pay levels are at the lowest in 18 months. This all comes at a time when employees are facing increased fuel and food costs, and employers are facing higher operational costs, including an increase in Company National Insurance contributions. 

Pay awards for 2025 are expected to be 3%, which is lower than the reported median award for 4.7%.

Pay will become a focus for employers in 2025. It may be likely that we see continued strikes while pay negotiations continue to take place. Retention of key employees will be a critical part of the company HR strategy, with consideration into what the employer can offer to employees to keep them motivated and engaged and less likely to be a flight risk.

Pay continues to impact the labour market in respect of workers from outside of the UK. It is reported that migrant workers were considering leaving the UK due to the increasing cost of living. The loss of these employees will have an impact on employers and productivity. The UK is currently experiencing critical skills shortages, and is likely to increase with the loss of this  migrant workforce.

In summary, 2024 has been a year full of change, and HR teams have been busy keeping their business stakeholders updated with legislation updates. These are challenging times for businesses, and HR professionals are key to ensuring that companies are aware of updates in employment legislation, trends within the workplace, and the wellbeing of employees. 

Adapting to Trends in 2025

2025 continues to look challenging and will require a HR strategy to focus on legislation changes and expected trends to engage with employees and retain them to protect the company productivity.

We will know more on when the Labour party are going to make changes in employment legislation.  Employers should therefore continue to keep up to date with these changes, and ensure that their policies are in line with 2024 legislation. With proposed updates giving employees the day one right to claim unfair dismissal, employers should consider (sooner rather than later) strengthening their probation reviews as this process will become a critical tool in understanding the suitability of the employee in the role at the early state of their employment.

Retaining employees will require some extra effort from the employer, looking beyond pay and reward to engage people. With an increased number of employees reporting that flexibility is an important factor, companies can look at this as a potential retention tool. Trends include employees expectations to be more flexible and manage their ‘work and life balance’. To attract and retain employees companies are having to consider if and how this flexible approach works and whether remote working brings the productivity that they need. Companies that embrace flexibility e.g. where the employees work, and the hours employees work, may have the competitive advantage when it comes to their engagement and retention.

AI / technology impacts continue to be reported as having a considerable effect in the workplace, which is having an impact on what skills are required in the business. Automation to speed up processes and looking at the skills requirements in the workplace and to meet the company objectives will be key. A skills analysis is going to be a useful tool for HR to use, to identify the skills for today and for the future, which will then determine their resource plans and training objectives. This is key to be included in the HR strategy.

Join Us for Updates and Guidance

Our Employment Team will be conducting a number of seminars and events over the year to provide updates and guidance. We look forward to seeing you at these events.

For more information, or to discuss your business requirements, please get in touch with our HR Consultants on  0345 646 0406 or fill in our online enquiry form and we will be in touch.