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.

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.

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.

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.

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.

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 ‘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.

I’ve come across several situations where a team, or individual members of a team, are suffering with low morale and poor performance. They’re on a downward spiral as not enough care and attention has been paid to the management of that team and the individuals within it.

Some managers genuinely think their Human Resources department are there to line manage each employee in the business. They don’t feel HR is part of their role and concentrate on providing functional business leadership.

Managing people as well as a function is not easy. As a manager you have several things to think about and probably several people, all with different needs and abilities. The role of HR is to help and guide managers through this aspect of their role and it’s a constant learning curve.

Top tips for successful management

I’ve come up with some ‘top tips’ for managers to help them flourish as a truly good manager:

GET TO KNOW YOUR TEAM.   You may think you know them, but have you spent any quality 1-1 time with them?Do you really know who they are, what they do, what they want to do and what they think of what they do? Regular 1-1s are invaluable and should be in the diary at least monthly.

ADAPT YOUR STYLE.   Remember that as the manager it’s your responsibility to adapt your management style to get the best out of your team. It’s not their job to adapt to you.

MANAGE PERFORMANCE.   Make sure you ask people in your team what they think of their performance. Ensure  you discuss and agree with them what their specific objectives are, and when they are expected to achieve them.

COMMUNICATE.   Ensure you communicate any non-confidential management and financial information to your team. This can include any information you think is relevant, useful and of interest. No-one really complains about being given too much information.

CELEBRATE DIVERSITY.   Accept and ENJOY the fact that you have people in your team with different goals, skills, experience and beliefs. Provided you’re all working to the same departmental goals, it’s a benefit to have such diversity within the team, so draw on it.

PROVIDE CLARITY.   Ensure that everyone in your team knows what their role is, what the boundaries are, where they have authority and what you expect of them.

This isn’t a definitive list, but it should set you up for success as a manager. If this doesn’t work, or you have a more specific need then that’s what your manager is for, to provide you with guidance.

If you advice and support to grow and develop to become the best manager you can be, get in touch. We can’t do the job for you, but we can definitely help!