Management development series: Managing employee sickness absence

Managing employee sickness absence is an essential part of a people manager’s role. When done correctly, it can help support employees while also maintaining productivity and morale within the team. Whether dealing with frequent short-term absences or long-term sickness, managers must ensure they comply with current UK employment legislation and should follow best practice.

Understanding the legal framework

In the UK, employee sickness absence is governed by various employment laws, including the Equality Act 2010, Employment Rights Act 1996, and Statutory Sick Pay (SSP) regulations. Managers must be aware of these legal requirements to avoid potential legal risks and ensure fairness for all employees.

  1. Statutory Sick Pay (SSP): Provided they meet the eligibility criteria, employees are entitled to SSP if they are off work for four or more consecutive days due to illness, and it can be paid for up to 28 weeks. Employees must provide evidence of their illness once they have been absent for more than 7 consecutive days, and this is normally done through the provision of a Fit Note from the employee’s GP, or a specialist letter.
  2. Sick Leave Policy: Employers should have a clear sick leave policy that outlines the procedures for reporting sickness, providing evidence, the process for returning to work, and how absence will be monitored. This policy should be communicated to all employees to ensure transparency.
  3. Disability Discrimination: Under the Equality Act 2010, an employee’s illness may qualify as a disability if it has a long-term and substantial impact on their ability to carry out normal daily activities. In such cases, employers are required to make reasonable adjustments to support the employee, including adjustments to work duties, hours, or the physical work environment.
Managing frequent short-term absence

Frequent short-term sickness absence is one of the most challenging aspects of people management. It can disrupt team performance and lead to higher workloads for colleagues. Here are some ways to manage short-term absences effectively:

Monitor absence patterns

Keep accurate records of all sickness absences. Look for patterns, such as recurring illnesses or specific times of the year, which could indicate underlying health issues or personal problems. A consistent absence pattern can help managers spot potential problems early and take appropriate action.

Maintain open communication

Ensure open lines of communication with the employee. Speak with them regularly, especially after a period of absence, to understand the reasons behind their sickness and to express concern. It’s essential to demonstrate empathy and create a supportive and confidential environment, as this will encourage employees to communicate more openly.

Offer support

Consider whether any adjustments or accommodations could help reduce frequent absences. For example, offering flexible working hours or allowing employees to work from home may help alleviate stress or health issues that contribute to frequent sickness. Be proactive in offering assistance rather than waiting for employees to request it.

Use return-to-work interviews

Return-to-work interviews after short-term absence are a valuable tool for addressing any concerns about patterns of sickness absence. These interviews help to ensure employees are fit to return to work, while also allowing managers to identify any underlying issues and offer additional support or adjustments.

Set clear expectations

Managers should set clear expectations regarding sickness absence, including how many days of absence are acceptable before a sickness absence review is considered. This should be outlined in the employee handbook or sick leave policy to ensure everyone understands the process.

Managing long-term sickness absence

Long-term sickness absence, generally defined as any absence lasting more than four weeks, presents different challenges. Managers must handle these cases with care to ensure compliance with employment laws while supporting the employee’s well-being.

Engage in ongoing communication

For long-term sickness, regular communication is crucial. Ensure that the employee is kept in the loop regarding any changes in the workplace, while also checking in on their condition. It is important to balance support with a clear understanding of when they might be able to return to work. Employees are expected to remain in contact and provide updates about their symptoms and likely return to work, and expectations about this should be contained within the sick leave policy.

Obtain medical evidence

If the sickness is prolonged, you may need to refer the employee to occupational health. An occupational health assessment can provide expert advice on the employee’s fitness to return to work. This will also include what adjustments might be needed, and any potential risks to the employee’s health or safety. Check your contracts to ensure that there is a clause which enables you to do this. Employees should provide medical evidence via Fit Notes or a specialist letter to cover the entire period of absence.

Consider reasonable adjustments

Under the Equality Act 2010, if an employee’s illness qualifies as a disability (as defined above), you must explore reasonable adjustments to support their return to work. This could include modifications to their role, altered working hours, or other adjustments to facilitate their return to work.

Maintain fairness and consistency

It is important to handle all long-term sickness cases fairly and consistently. Managers should avoid making assumptions or discriminating against employees based on their illness. Each case should be assessed individually, but the same policies and procedures should apply to everyone.

Implement a clear return-to-work plan

Once the employee is ready to return to work, create a structured plan for their reintegration. This might include a phased return to work, where the employee works part-time initially and gradually increases their hours. The return-to-work plan should be developed in consultation with the employee, ensuring it’s realistic and tailored to their needs.

Key takeaways
  • Keep accurate records of absences and look for patterns
  • Ensure open communication and offer support for both short-term and long-term illness
  • Be aware of your legal obligations, including SSP and reasonable adjustments for disabilities
  • Use return-to-work interviews to address concerns and support employees
  • Ensure consistency and fairness in managing sickness absence

By taking a structured and empathetic approach to managing sickness absence, people managers can help create a supportive work environment. This will foster productivity and employee well-being. If you need support in developing a sick leave policy, or need specific advise about an employee’s sickness absence, get in touch.

Employment legislation changes – April 2025 and beyond

Due to the change of government in July 2024, it’s easy to be confused about legislation changes this year. We’ve looked at the details for you, so here’s a rundown of the changes.

National Minimum Wage rates

The National Minimum Wage/living rates are going up on 1 April 2025. If your pay is based on minimum wage rates per hour, you will need to implement these changes:

 

Age group Up to 31/3/2025 From 1/4/2025
21 and over £11.44 £12.21
18 – 20 £8.60 £10
Apprentices under 19 (or over 19 but in year 1 of apprenticeship) and under 18s £6.40 £7.55

Statutory pay rates – From April 2025

Family friendly leave

The rates of Statutory Maternity, Adoption, Paternity, Shared Parental and Parental Bereavement pay will increase to £187.18 per week.

Statutory Sick pay

The rate of Statutory Sick Pay will increase to £118.75 per week.

Statutory redundancy payments

With effect from 6th April 2025, the statutory redundancy pay cap will increase to £719 per week. It’s important to ensure you get up to date compensation information for anyone who leaves due to redundancy on or after this date. You will need to calculate their redundancy pay on the new rate.  If the redundant employee’s normal weekly rate is under the new figure, you should calculate their redundancy compensation based on their actual weekly pay rate.

Statutory Neonatal Care Leave

This statutory leave will allow parents whose babies need hospital neonatal care to take up to 12 weeks’ paid leave, with one full week available for each full week the baby receives neonatal care. This is in addition to their statutory maternity, shared parental or paternity leave. The right will:

  • be available from day one of employment
  • apply to parents with babies who are admitted to hospital before they are 28 days old and
  • apply to babies who need to stay in hospital for 7 days continuously or more.

Leave must be taken within 68 weeks of the baby’s birth, or placement in the case of adoption

Neonatal Care pay will only be available for employees who have 26 weeks of continuous service and who meet the minimum earnings threshold (£125 per week).

This entitlement will be effective from 6th April 2025.

Employer National Insurance increase

National Insurance Contributions (NIC) rates for employers increase from 13.8% to 15%. In addition, the threshold at which employers start paying NICs will decrease from £9,100 to £5,000 of an employee’s annual salary / wage. This means an additional £4,100 of each employee’s earnings will be subject to Employer NICs. The net result of this will be that more lower paid employees will be subject to Employer NICs.

This change is effective from 6th April 2025.

Upcoming changes to be confirmed

Pension Scheme Bill

In November 2024, the Government announced it will introduce a new Pension Scheme Bill in 2025. The Bill is expected to include:

  • Automatic consolidation of small, deferred pension pots
  • A value-for-money framework for Defined Contribution (DC) schemes
  • A requirement for occupational DC schemes to offer tailored retirement income solutions
  • A commercial Defined Benefit superfund to enhance financial security for its members

It’s expected that a pension dashboard will be introduced in 2025, which will allow people to view all of their pension savings (including state pensions) on one platform. The aim of this is to improve transparency and enable people to have more control of their retirement planning.

Paternity (bereavement) leave

This new right will be a day-one right. The 26-week minimum service requirement for paternity leave will not apply for fathers and partners where the mother has died in the first year after birth or adoption. This also applies to a bereaved parent of an adopted child, or intended parent of a child born through a surrogacy arrangement. In addition:

  • These bereaved parents will also be able to take paternity leave
  • Where the child also dies (or is returned after adoption) the employee can still take leave

There are also plans for paternity leave to be extended to 52 weeks for these bereaved partners. It is unclear whether the day one right to paternity leave in this situation will extend to paternity pay.

Trade union reforms

Some of the trade union reforms contained in the Employment Rights Bill are expected to come into force in 2025 – removing the following requirements which were introduced by the previous government:

  • The minimum service level requirements for certain sectors
  • The information and turnout requirements for ballots
The Employment Rights Bill – progress

In line with the plans unveiled in the government’s Employment Rights Bill, future legislation changes have been laid out in general terms and are detailed below. In most cases the date of implementation is to be confirmed, unless stated otherwise.

NB The government have confirmed they do NOT intend to introduce a right to disconnect under the Employment Rights Bill, but it may be implemented under a ‘code of practice’ at some point in the future.

The list of forthcoming legislation changes below includes legislative and non-legislative changes planned.

Unfair dismissal

The two-year unfair dismissal qualifying period will be removed, and be replaced with a new statutory probationary period, referred to as the ‘initial period of employment’ in the bill. The length of this period is yet to be confirmed but is likely to be up to nine months.

Unlikely to be effective before Autumn 2026.

Trade union rights

Consultation has concluded and it’s been confirmed that the process and transparency around trade union recognition will be improved. There will be a new duty on employers to inform workers of their right to join a trade union.

The bill will also simplify information requirements on ballots for industrial action and extend the expiry of a mandate for industrial action from 6 to 12 months.

A further amendment will repeal the 50% industrial action ballot threshold (on a date to be specified in regulations).

Sick pay

There will be a right to Statutory Sick Pay (SSP) from day one of illness absence, removing what are referred to as the three ‘waiting days’. The requirement for employees to meet or exceed the Lower Earnings Limit (£125 from 1/6/25) will be removed.

Low earners, including those currently paid under the LEL will be eligible for SSP at a rate of 80% of their normal weekly earnings, if less than the flat rate of SSP.

Fire and rehire

Employers’ ability to use fire and rehire will be restricted due to a change to the laws on unfair dismissal. Where employers fail to agree a change to a contract of employment and a ‘fire and rehire’ process is initiated, the dismissals will be treated as automatically unfair unless the employer can show evidence of financial difficulties, and demonstrate that the need to make the change in contractual terms was unavoidable.

In addition, in January 2025 tribunals were able to apply up to a 25% uplift to compensation where the ‘fire and rehire’ process lead to proven unfair dismissal, IF the employer didn’t follow the Code of practice on dismissal and re-engagement, issued by the Secretary of State.

Redundancy collective consultation

Employers will no longer be able to treat redundancies at different locations as completely separate for the purposes of the thresholds for collective consultations. Collective consultation will be required if there are 20 or more redundancies at one establishment, OR where redundancies are being made across the employer as a whole, if a different threshold (to be confirmed) is reached. This new threshold for across the employer as a whole could be a fixed number, or a percentage of the workforce. This is a change to the original proposal.

The maximum protective award will be increased where an employer has failed to comply with collective consultation requirements. Specifics to be confirmed.

Employees who bring a claim for the protective award will also be able claim interim relief via the employment tribunal, and the government is proposing to increase the cap on Protective Awards in collective redundancy situations to 180 days (increased from 90 days) to encourage employer compliance.

Agency and Zero-hours workers

Agency workers will have the right to a guaranteed hours contract to reflect the hours they regularly work. This is likely to be across a set reference period. In addition, agency workers and zero hours contract workers will be given a right to reasonable notice of changes to shifts or working hours. There will be however the possibility of excluding those rights via a collective agreement.

Workers will also have a right to compensation that is proportionate to the notice given for any shifts that are cancelled or curtailed.

The details will be set out in regulations, and subject to consultation.

Flexible working

Flexible working will be the default day-one right, apart from when it is not reasonably feasible. If the employer believes it’s not reasonably feasible, the current eight reasons for refusing the request for flexibility will remain. Employers must explain the reason for a refusal, or why the refusal is considered reasonable, in writing to the employee.

Family leave returners

Forthcoming legislation will make it unlawful to dismiss a woman, while pregnant, and / or on maternity leave, and within six months of returning to work (with some exceptions to be confirmed).

Existing powers are to be strengthened in relation to dismissal in the period a person returns to work from adoption leave, shared parental leave, neonatal care leave and bereaved partners paternity leave, details to be confirmed.

Paternity and Parental leave

Statutory parental leave (unpaid) allowing parents to take 18 weeks of unpaid leave during the first 18 years of their child’s life) will become a day-one right, removing the requirement for one year’s continuous employment.

Statutory Paternity Leave will be a day-one right, removing the requirement for 26 weeks continuous employment.

Miscarriage bereavement leave

Mothers and their partners will be entitled to two weeks’ bereavement leave if they suffer a pregnancy loss before 24 weeks. This extends the current entitlement which applies only if a child dies or is stillborn after 24 weeks of pregnancy.

Harassment

There will be a new provision requiring employers not to permit harassment of employees by a third party.  In addition, employers must take ALL reasonable steps to prevent sexual harassment. This enhances the recent changes in October 2024.

Bereavement

There will be a day-one right to at least one week’s bereavement leave for employees. The circumstances under which this right can be exercised will be confirmed.

Fair Work Agency

A new enforcement body, the Fair Work Agency (FWA) will combine multiple existing agencies, in a single body to enforce employment rights. This will offer a single place where workers can seek help. This body will also be able to bring a claim to an employment tribunal in place of a worker if the worker decides not to pursue a claim. Details of how this would work are to be confirmed.

Tribunals

The time limit for bringing a tribunal claim will increase from three to six months.

Paid carer’s leave

The government confirmed it will review the current statutory Carer’s Leave entitlement, including the benefits of introducing paid carers leave. This review is one of the government’s longer-term delivery reforms.

National Living Wage

The government plan to update the National Living Wage to account for the cost of living, and remove the lower 18-20-year-old age bracket. This is part of a plan to move towards a ‘single adult rate’.

If you’re concerned about what these employment legislation changes from April 2025 mean for your business, please get in touch.

Management development series: Top Tips for Effective Delegation

As a people manager, effective delegation is one of your most powerful tools. Delegating tasks not only helps you manage your workload, but it also develops your team, builds trust, and helps you achieve your organisational objectives. However, many managers struggle with delegation, often holding on to tasks they should be passing on or not providing clear enough guidance to their teams.

In this blog, we’ll explore some top tips for effective delegation. Whether you’re a seasoned manager or new to leadership, these strategies will help you delegate more efficiently and reach your goals.

Identify the Right Tasks to Delegate

Not every task should be delegated. The key is to identify what tasks will help you achieve your goals while also contributing to your team’s growth.

  • Delegate routine tasks that are time-consuming but don’t require your direct involvement. This will free up your time for more strategic work.
  • Delegate tasks that will develop your team members’ skills. Assign tasks that stretch their capabilities and give them the chance to learn new skills or improve existing ones.
  • Avoid delegating tasks that are critical to your expertise or require very specific knowledge that your team members don’t have.

By being thoughtful about what to delegate, you can ensure that tasks go to the right person and support both your own objectives and your team’s development.

Choose the Right Person for the Task

Effective delegation isn’t just about passing off work – it’s about choosing the right team member for each task.

  • Assess skills and experience. Think about the strengths and weaknesses of your team members. Assign tasks based on their capabilities, while also considering whether they can grow through the task.
  • Consider workload. Don’t overload high performers with all the tasks. Balance workloads across the team to avoid burnout.
  • Trust your team. Effective delegation means trusting your team members to deliver results. Avoid micromanaging – give them the responsibility and space to perform.

When you assign tasks to the right person, the chances of success increase, and your team members feel valued and trusted.

Set Clear Expectations

One of the most common mistakes managers make when delegating is not being clear about expectations. To avoid confusion and frustration, ensure that you:

  • Define the desired outcome. Be clear about what success looks like for each task. Provide a vision of what you want the final product to look like.
  • Set deadlines. Specify when the task needs to be completed. If it’s a multi-step project, break it down into smaller deadlines to help keep track of progress.
  • Clarify resources and support. Let your team know what resources are available to them and how they can ask for help if needed.

Clear expectations ensure that there’s no ambiguity, reducing the chance of mistakes and misunderstandings.

Provide the Right Level of Autonomy

Delegation doesn’t mean giving up control – it’s about finding the right balance of support and independence.

  • Give freedom where appropriate. If your team members are capable, allow them the autonomy to approach the task in their own way. This boosts confidence and fosters a sense of ownership.
  • Provide guidance if needed. If the task is new or complex, be available for advice, but avoid micromanaging. Trust your team to get things done, but provide the right level of support to keep them on track.

Effective delegation is about empowering your team to make decisions while providing the necessary backup if things don’t go as planned.

Monitor Progress and Provide Feedback

Delegating doesn’t mean walking away and forgetting about the task. Regular check-ins and feedback are essential to ensuring things are on track.

  • Check-in periodically. Set up regular check-ins to discuss progress and any obstacles the team member might be encountering. These check-ins should be constructive, focused on problem-solving, and aimed at maintaining momentum.
  • Give constructive feedback. Offer feedback throughout the process, not just at the end. Praise progress and accomplishments, but also discuss potential for improvement.
  • Celebrate achievements. Recognise and celebrate successes, whether big or small. This helps build confidence and motivation for future tasks.

By staying involved without being overbearing, you ensure that the task is completed successfully and your team feels supported throughout the process.

Encourage Development and Growth

Effective delegation isn’t just about getting tasks done – it’s also an opportunity to develop your team members.

  • Assign challenging tasks. Delegate projects that will stretch your team’s skills and push them outside their comfort zones. This builds confidence and helps them grow professionally.
  • Offer learning opportunities. Use delegation as a chance to help team members learn new skills. This will not only help them grow but also benefit the team as a whole.
  • Provide mentorship. Share your knowledge and offer guidance as your team members take on more responsibility. This not only helps them succeed but also strengthens your relationship with them.

Delegating with the intention to develop your team leads to stronger performance, higher employee satisfaction, and a more capable workforce in the long term.

Trust Your Team

Trust is at the core of effective delegation. If you don’t trust your team to handle the task, delegation will feel like an exercise in futility.

  • Let go of perfectionism. Understand that your team members may not do things exactly the way you would, but that doesn’t mean they won’t do a good job.
  • Encourage independence. Trust that your team will take ownership of their tasks and problem-solve when necessary. Giving them responsibility fosters loyalty and boosts motivation.
  • Respect their expertise. When you delegate, you’re not just handing off tasks – you’re acknowledging the skills and knowledge of your team members.

Building trust through delegation not only boosts your team’s confidence but also fosters a positive work culture where everyone feels empowered to contribute.

Reflect and Improve

After delegating a task, take the time to reflect on how it went and identify areas for improvement.

  • Evaluate outcomes. Did the task meet expectations? Were there any challenges or surprises? Use this as a learning opportunity to refine your delegation process in the future.
  • Seek feedback from your team. Ask your team members for their perspective on the delegation process. What went well? What could have been improved?

Reflection ensures that you’re continually evolving as a manager and improving the way you delegate.

Conclusion

Delegating effectively is essential for any people manager who wants to develop their team, achieve their objectives, and build trust. By identifying the right tasks to delegate, choosing the right person, setting clear expectations, and providing the necessary support, you can empower your team to succeed. At the same time, you’ll free up your own time to focus on high-priority tasks, improve team dynamics, and foster a culture of growth and accountability. Delegation is a skill that takes practice, but by following these tips, you’ll be well on your way to becoming a more effective, trusted, and inspiring leader. If you need guidance on how to delegate effectively, or your team need training in this area, get in touch.

Management development series: Successful Performance Management

In the wake of ongoing economic challenges in 2025, businesses in the UK face increased pressure to maintain productivity while ensuring a positive, compliant, and fair working environment. One key area that directly impacts business success is effective and successful performance management. By adhering to the ACAS Code of Practice on disciplinaries and grievances and following best practice principles, employers can manage their workforce effectively, build trust, and optimise performance.

Top ten tips for successful performance management

Here are ten practical tips to help you manage employee performance successfully while staying compliant with legal requirements and supporting your team’s wellbeing:

Set clear expectations from the start

Effective performance management begins with clear expectations. Ensure that every employee understands their role, the specific objectives they need to achieve, and how their performance will be measured. Set SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals for clarity and direction. This foundation helps prevent misunderstandings and provides a clear benchmark for performance evaluations.

Regularly review performance

It’s important to conduct regular performance reviews – not just annually. Have regular one-to-one meetings to provide feedback, address any concerns, and offer opportunities for professional development. This allows you to identify areas for improvement early on and also provides an opportunity to celebrate successes.

Document performance discussions

It is vital to document all formal and informal performance discussions. Keeping accurate records of feedback, goals, and any disciplinary actions ensures that decisions are justified and transparent. Documentation also protects both the employee and employer should any disputes arise in the future.

Be fair and consistent

When managing performance, be sure to apply standards and processes consistently across all employees. Ensure that any performance-related actions—whether positive or corrective—are fair, objective, and based on clear evidence. Avoid biases, and make sure your approach to performance management doesn’t unfairly disadvantage any employee.

Provide constructive feedback

Feedback should be constructive, not punitive. When addressing areas for improvement, provide actionable advice and offer support to help employees meet performance expectations. Use the “SBI” method (Situation-Behaviour-Impact) for delivering feedback: describe the situation, the specific behaviour, and its impact. Constructive feedback should be a tool for growth, not a source of frustration.

Create an open dialogue

Open communication is essential for successful performance management. Encourage employees to share concerns, ideas, and feedback about their role, workload, or any obstacles they may face. This two-way dialogue can help you better understand challenges and work together to find solutions. Being accessible and approachable builds trust, which is essential in addressing issues early on.

Offer training and development opportunities

Invest in the development of your employees by offering training, mentoring, or coaching opportunities. Not only does this improve their skills, but it also signals that you are invested in their growth. By giving employees the resources they need to succeed, you can improve overall performance and job satisfaction, which leads to better outcomes for both the individual and the business.

Support wellbeing and work-life balance

A stressed or overworked employee is unlikely to perform at their best. Prioritise employee wellbeing by promoting a healthy work-life balance, offering flexible working options, and ensuring that mental health resources are available. Supporting wellbeing isn’t just about preventing burnout; it can also lead to higher engagement and better overall performance.

Implement and follow a clear disciplinary procedure

The ACAS Code of Practice outlines the need for a fair and transparent disciplinary procedure when performance issues are not resolved through informal discussions. Ensure that your disciplinary process is clearly documented, accessible to all employees, and consistently followed. Employees should be given an opportunity to respond to any concerns before any formal action is taken.

Recognise and reward good performance

It’s important to recognise and reward employees who consistently meet or exceed expectations. Acknowledging achievements, whether through formal rewards, public recognition, or career development opportunities, helps to motivate employees and reinforce positive performance. Acknowledgement encourages a culture of excellence, showing employees that their contributions are valued.

Why this matters

In 2025, businesses must adapt quickly to a volatile economic environment. By following these ten practical tips for managing employee performance, employers can enhance productivity, reduce the risk of legal disputes, and build a more engaged workforce. Clear expectations, regular feedback, fairness, and a focus on employee wellbeing are essential components of effective performance management.

In a challenging economic climate, businesses that prioritise performance management will not only improve operational efficiency but also cultivate loyalty and engagement. A workforce that feels supported, valued, and fairly treated is more likely to go the extra mile, leading to sustained success and competitive advantage in 2025 and beyond.

If you need any support or advice regarding successful performance management, get in touch.

Priorities for UK employers in 2025

As we move into 2025, UK employers face a shifting economic landscape, alongside new regulations and policies set to shape the workplace. Following the Autumn Statement by Chancellor Rachel Reeves and the upcoming Employment Rights Bill, it’s crucial for businesses to prepare for these changes. Here are the key priorities for UK employers in 2025, and what they should focus on:

Prepare for changes in employment rights

The new Employment Rights Bill will introduce significant changes that affect how businesses manage their workforce. Some key provisions include:

  • Stronger protections for workers. Expect changes to enhance job security and workplace conditions, including clearer and more stringent rules around unfair dismissal claims and redundancy.
  • Extended sick leave and pay. The bill may introduce more generous sick pay entitlements, so employers should review their current sick leave policies.
  • Flexible working. Employers must prepare for increased demand for flexible working options, with new rights potentially making it easier for employees to request remote work or flexible hours.
  • Non-compete clauses. New rules could impact the enforceability of restrictive covenants, requiring employers to reassess their contracts and policies.
Address the cost of living crisis

The UK economy is still grappling with the effects of inflation, with many workers facing rising living costs. Employers should:

  • Offer competitive wages. The government is under pressure to address wage stagnation. Companies should ensure they are offering competitive salaries, or consider cost-of-living adjustments for employees.
  • Support staff wellbeing. Mental health and employee wellbeing are becoming a priority for businesses. Employers can consider offering wellness programs or increasing access to mental health support.
  • Consider benefits packages. Reevaluate your benefits offerings, such as bonuses, retirement plans, and other perks, to ensure they remain attractive to current and potential employees.
Be ready for economic uncertainty

The UK economy remains uncertain, with global inflation, energy prices, and post-Brexit changes creating challenges. Employers should:

  • Plan for economic fluctuations. Create flexible business plans that can be adapted if the economy worsens. This might include managing cash flow more conservatively, reducing unnecessary overheads, or diversifying your revenue streams.
  • Focus on business resilience. Build resilience by strengthening your supply chains, diversifying talent pools, and reducing dependence on any one market or sector.
  • Engage in strategic forecasting. Regularly monitor economic trends, political developments, and changes in consumer behavior to stay ahead of potential disruptions.
Prepare for more scrutiny around workplace culture

As public and government expectations evolve, businesses are under greater scrutiny about their workplace cultures. Employers should:

  • Promote diversity and inclusion. Demonstrating a commitment to diversity and inclusion isn’t just good for business; it’s becoming a regulatory and ethical necessity. Make sure your company policies reflect these values and are communicated effectively.
  • Strengthen employee engagement. Engage with employees to understand their needs, concerns, and aspirations. Companies with strong employee engagement are more likely to thrive during economic challenges.
Workforce optimisation

For many organisations, optimising staffing levels will be top of the agenda in 2025. For some, the focus will centre on attracting new talent to support organisational growth plans and address skills shortages. This will involve improving recruitment processes, methods and channels. Meanwhile, other organisations will focus on recalibrating their workforce through restructures to align with changing business needs or to reduce costs. Whether hiring or resizing, employers need to ensure that workforce planning supports long-term organisational objectives.

Focus on skills and training for the future

The UK’s skills gap is a persistent challenge, and the government has indicated a focus on improving workforce skills. Employers should:

  • Invest in training programs. Upskilling your employees will be crucial in 2025. Offering continuous professional development (CPD) opportunities can improve staff retention and fill gaps in essential skills.
  • Support apprenticeships. In line with government priorities, consider investing in apprenticeship schemes to build a pipeline of skilled workers while supporting the broader economy.
Ensure fair pay and pay transparency

Pay transparency and fairness are expected to be high on the government’s agenda in 2025. Employers should:

  • Review pay structures. Conduct pay audits to ensure equal pay for equal work, especially for gender, ethnicity, and other underrepresented groups.
  • Prepare for potential reporting requirements for employers with 250 or more employees. The government may introduce pay transparency measures, be ready to disclose pay gaps and ensure your organisation is ahead of the curve.
  • Be proactive on diversity and inclusion. In 2025, businesses will be under increased pressure to ensure their recruitment, promotion, and compensation practices are equitable and transparent.
Adapt to new workplace technologies

The future of work is digital, and the UK government is investing heavily in technology. Employers need to:

  • Invest in digital skills. Employees will need new tech skills as automation, AI, and digital platforms become more common in the workplace. Provide upskilling opportunities, especially for employees in roles that could be affected by technology.
  • Update IT infrastructure. Ensure your business has the digital tools necessary for remote working, cybersecurity, and effective collaboration. Consider investing in cloud solutions and cybersecurity measures to protect sensitive data.
  • Leverage automation. Review areas where technology can automate repetitive tasks, improving efficiency and allowing employees to focus on higher-value activities.

 

In 2025, UK employers will face a rapidly changing landscape of regulatory and economic challenges. By focusing on these priorities businesses will be better positioned to thrive in the evolving economy. Staying ahead of these trends and taking proactive measures will help you create a strong, resilient, and future-proof business. If you need any support or advice in any of these areas, please get in touch.

Managing Probationary Periods

When you hire a new team member, there will usually be a probationary period. This is a time during which both parties can establish if hiring them was the right decision. It’s a fixed amount of time, so proactively managing probationary periods is important. If it applies, details of a probationary period must be included in employment contracts. Wording should include the duration, the right to extend, and areas of their performance and conduct which will be considered.

Many companies have rebranded the probationary period, using terms like ‘Introductory Period’ or ’90-day journey’. They mean the same thing; Was hiring the new joiner the right decision?

Probationary periods ensure that an employee’s expectations are managed. They understand that what they do during that time matters and can affect their ongoing employment.  If the end of a probationary period goes left unchecked, the default position is that they have successfully passed.  This may result in changes to their entitlements and notice period, and it’s more difficult to address those issues after that.

Areas to consider

When it comes to assessing whether the hiring decision, it shouldn’t just be about technical ability in their field of expertise. It’s about the behaviour they demonstrate, their understanding of the business or their desire and enthusiasm to learn and make a positive contribution. In an SME one person can make a big difference to the team dynamic and the success of the business. Therefore, it’s important that you use the probationary period to determine if you made the right decision. The probation period is also about the employee deciding if this is the right place for them. It’s important that you engage in two-way dialogue about how they’re getting on.  The probationary period provides an opportunity to ‘course correct’ if things doing seem to be going to plan, either for you, the team or the new hire.

Tips for managing a successful probation

Managers need to spend time proactively managing probationary periods. It should be expected that more management time will be spent on this person during that time. The time you spend is an investment which will hopefully lead to a direct return.

So what should managers be doing during their new hire’s probation?  Here are our top 10 tips:

  1. Clear job information: Make sure all the relevant information is clearly communicated during the recruitment process. That way there is no ambiguity about the role and what it involves
  2. Effective induction: Ensure you have an effective induction programme. This should include information about their job, the team, the business and the way it’s structured. It should also include where they fit in, the values of the company and how you expect employees to behave at work
  3. Introductions to key people: Ensure the new hire is introduced to key people on day one or at least during their first week. That way they know where to go for support if they have questions. No-one can know everything from day one
  4. Meet regularly: Meet with the new hire 1-1 regularly and frequently, and make sure it’s diarised and a written note is taken and shared with them in a timely way. In these meetings you can ensure they know what they should be doing. You can provide regular feedback about how it’s going, both from the perspective of their work, as well as their behaviour. For example if their work has been accurate, or you have noticed they have been late multiple times during their first week / month. Flag what you have noticed, ask how they feel it’s going and if there is anything they’re not sure about
  5. Set SMART objectives: Set some agreed objectives for the first month, and / or overall for their first 3 or 6 months. Progression towards meeting the objectives should also become an area of feedback in your weekly meetings, and follow up on email with the key points
  6. Be accessible and approachable: Have ad hoc informal catch-ups with the new hire on the ‘shop floor’. Ensure your new hire has the opportunity to ask any questions they may have
  7. Flag issues and concerns: If there are issues, flag them sensitively, but honestly. Explain why it’s a problem, and what you expected instead, or better still, ask them how they could have avoided the issue
  8. Timely feedback: Ensure your feedback is given in a timely way. If something serious is wrong, don’t wait for the next 1-1 meeting
  9. Preparation for meetings: Provide feedback in a confidential setting away from colleagues to protect their dignity. Prepare feedback properly to ensure it’s objective and delivered thoughtfully
  10. Act prior to the end of probation: Make sure you meet with the new joiner before the end of the official probationary period to confirm formally if they have passed their probation. Alternatively, probation can be extended if there are ongoing issues which need to be addressed. Equally if there are too many issues you may have to deliver the news that the probation has not been successful. (i.e. you give notice to terminate their employment)

As people managers it’s in your interests to do all you can to set this person up to succeed. This avoids unnecessary additional time and resource in sourcing a new hire twice in a short period of time. That said, sometimes things don’t work out. If that’s the case, dealing with it promptly and decisively will save time and money.

Recruitment can be expensive and time-consuming, so making sure your initial recruitment process was appropriate will help.  Read our previous blog here about recruitment if you want more tips for successful recruitment.

If you would like support managing probationary periods, or you have an issue with a new hire, get in touch.

Leadership tips

Congratulations! You have achieved that long yearned for appointment or promotion in to a leadership role. The joy of your success may be palpable, and rightly so. However, an element of apprehension may make an appearance at some point.

Here are some top tips for any newly appointed leaders out there, to make sure you’re set for success.

Identify some quick wins

The first 100 days is a typical gauge of success, so speak to key people to identify some quick wins and find the right people to deliver them. Motivate, monitor and measure their progress, provide support and celebrate the successes. Make sure that the delivery of the quick wins sets the tone of your leadership style and be consistent.

Meet people and listen

Your success is dependent on other people, both in and outside of the business.  Make a commitment to meet:

  • your direct reports and key people in their teams
  • other leaders in the business (if you’re part of a senior leadership team)
  • key partners in other business areas, with whom you can share knowledge
  • key customers and suppliers

When you meet with them, ask questions about how things are going and what could be better. Listen to their thoughts and opinions and make notes.

Create a long-term plan

Whilst the quick wins serve a purpose, you also need to think long-term. Use the information from your initial meetings to identify the long-term priorities. Ensure you communicate to your team about these priorities and your reasoning. Ask for feedback, listen, then make a final decisive plan, identifying the ‘what’, ‘why’, ‘who’ and ‘when’ for each of your priorities.

Overcommunicate

Be visible and accessible. Arrange and stick to regular meetings with peers and direct reports, as well as key project leaders. Share information with them and ensure they share their progress with you.  Involve your direct reports in defining the ‘how’ in your plan. Your success is dependent on how it is delivered, as well as the ‘what’, ‘why’, ‘who’ and ‘when’.

There are many other things you could do, and there are many articles about successful leadership if you look for them. But these tips should help to send you off in the right direction. If you need support in a new leadership role, get in touch with Helpful HR.

Difficult conversations

Anyone who has ever line managed will undoubtedly have had that sinking feeling at some point, knowing that they need to address some kind of problem with the performance or conduct of one of their team. All line managers should feel reassured that they are not alone in feeling this way.

The good times

When everything is going well, and your team are performing and behaving as you want them to, being a people manager is fantastic. You see great results through your people, and that reflects positively on you. Your bosses think you’re doing a great job and all is right with the world.

The harder times

Unfortunately this perfect world is very unusual, certainly in the long term, and there will be times when you have to address a problem directly with one of your team members. Whether it’s an issue with their performance or their behaviour, no-one looks forward to having a conversation about these issues and addressing it head-on. But it really is the best way to make a change for the better.

Top tips

Here are some top tips for preparing for, and having those dreaded conversations:

  • Don’t wait.  If something has gone wrong, address it privately at the first opportunity you have. Don’t wait for the next 1-1 in a month’s time and don’t address it publicly in the open office.
  • Prepare.  Make notes and identify the problem. Be specific and note exactly what went wrong and what you expected. Be prepared to share this information with the individual.
  • Have a conversation.  Everyone has a different perspective on any situation, so allow the individual the opportunity to give their view of the situation.
  • Keep it objective.  Keep it factual, balanced, constructive and objective and try to make sure that it doesn’t get personal, or heated.
  • Check for understanding.  Seek confirmation that they understand why it was a problem, by asking questions such as ‘Can you understand why this wasn’t appropriate?’ and ‘What do you think you could have done differently?’ Probe them if you feel they don’t fully accept that there was an issue, or take responsibility.
  • Follow-up.  Tell the individual that you will forward them a summary of what you’ve discussed, so that they can have a record of your expectations. It’s not a formal warning, just provided to support their learning and development.
The benefits

As managers and business leaders, if you address problems in your teams directly, you can ensure that all your team are contributing to the success of your business. One underperforming team member can do damage to your business success and potentially your brand. By ‘nipping it in the bud’ in a constructive way, you will avoid situations developing and taking a downward spiral. The longer performance or conduct issues go unchecked, the harder it is to address successfully. There’s also more chance of the wider team becoming unhappy.

If you or your management team need support in addressing difficult situations, HelpfulHR can definitely help – whatever the issue. Get in touch, and let’s get them back on track.

The Season of Goodwill

As the festive season approaches, business leaders have probably been thinking about goodwill gestures they could make, to show their employees they recognise the value they bring to the success of the business. This might be an additional day off, or an end of year bonus and both or either of those options would obviously be very welcome, I have no doubt.

Is it reciprocal?

But how many business leaders approach the end of the year and consider goodwill from a different perspective; that of the employee? How many business leaders will question the goodwill their employees feel towards them as an employer? And how many employers have been pro-actively creating goodwill throughout the year, through their everyday working practices?

Why does it matter?

As Linda Ray commented here, employees who feel appreciated will have a positive attitude towards their employer. As a result they will be much more engaged and loyal, which will help to keep employee turnover rates low. This will lead to reduced recruitment and on-boarding costs, both in terms of money and time. Ultimately this employee engagement, when coupled with structured performance management processes will increase employee productivity and performance, making a direct contribution to the success of the company.

We can help

If you would like to find out more about how to gain or grow the goodwill of your employees, and discover how engaged your employees are, we can help, so get in touch with Helpful HR.

The Employment Status Conundrum

The ‘gig’ economy has been centre stage recently in the news and has caused confusion around individual’s employment and tax status.

Recent cases

Uber is adamant its drivers are NOT employees. However, an employment tribunal  concluded they are, ‘workers’.  Addison Lee  also had a recent employment tribunal judgement, which came to the same conclusion.

The consequences

These cases demonstrate the pitfalls of getting it wrong, on a large scale. The judgements of the tribunals have definitely provided Uber and Addison Lee with bucketloads of negative PR.  They also have the administrative headache of changing their status, backdated rights to holiday pay and the National Living Wage. There’s also a strong chance that HMRC will collect backdated employer’s tax contributions for all of their newly defined workers.

How to establish status

In order to avoid the same problems as Uber and Addison Lee, employers are well advised to make a proactive and honest assessment of people they hire and ask the following:

  • Does the individual work off-site?
  • Are they using their own equipment?
  • Is there a mutual obligation about you offering work and the individual having to accept work when offered?
  • Does the individual regularly work for other companies?
  • Can the individual send someone else of their choosing by way of a substitute, to carry out the work?
  • Does the individual control how or when the work is completed?

If the answer to one or more of the above questions is ‘no’, the individual you’re hiring is probably not self-employed. If you treat them as self-employed, in the long-term you may very well come up against some difficult and costly issues.

We can help

If you need any advice or support on determining the employment status of individuals working for your company and what it means, get in touch with Helpful HR.