What are the HR trends for 2025?

The HR landscape has changed to no end over the past decade. There’s no stopping it either. 

Once upon a time, it was about admin and admin alone. Recruitment, compliance, payroll. 

Now, SMEs face a tidal wave of expectations—including talent development, employee engagement and new HR laws, such as Labour’s 60+ employment law pledges. Add all this change to the challenge of scraping through a year of a struggling economy and it’s no surprise many of our clients are losing sleep. 

If you don’t stay ahead of the curve and abreast of the incoming changes, you risk people headaches impacting your bottom line, a damaged reputation, increasing risks of tribunal claims, and everything you’ve worked so hard for.  

That’s where Tercus HR comes in. We’re here to simplify and implement a tailored HR strategy that keeps you out of trouble and actually benefits your business. 

So, what’s on the HR menu for 2025? 

Key trends for 2025

We’ve already heard a lot about both of these topics, but they’re front and centre in 2025.  

You’ll never guess what they are. 

First up, AI. Shock! AI could help us transform HR processes—think smarter recruitment, tailored training plans and faster data insights. But it’s not without risks. Mishandled AI can lead to biased hiring, privacy issues and employees feeling like cogs in a machine. We can help you use AI the right way—making it a tool for growth, not a source of stress. 

Secondly, Corporate Social Responsibility (CSR) expectations will require SMEs to create real value—for employees, your business and the wider community. Over 84% of organisations say CSR has grown more important over the past year. Strong CSR practices incorporate employee wellbeing policies such as mental health initiatives and flexible working. CSR covers many bases, but we’re right beside you, helping to cover them all. 

Legislative changes to watch

Flexible working rights from day one 

Since 6^th April 2024, employees can request flexible working from day one of employment. Employers can only reject requests based on specific reasons. This shift aims to improve retention and attract diverse talent. 

Carers leave 

Employees balancing work with caregiving can now request flexible working arrangements such as compressed hours and remote working. Employers must consider these requests and provide valid reasons for denying them.  

Redundancy protections for parents and carers 

New protections for parents mean that workers will now be safeguarded from redundancy from the moment they disclose a pregnancy until 18 months after the baby’s birth or adoption leave. Employers need to adapt their redundancy policies to ensure they comply with these new protections and avoid legal risks. 

These changes require quick action from businesses to stay compliant. We understand many implications can arise from flexible working and misunderstanding legislation changes. We’re here to help you avert them. 

Another hot topic   

In 2024 sickness absence rate jumped to the highest in a decade. The average rate of employee absence now stands at 7.8 days per employee per year, a considerable increase since data was last collected before the pandemic in October/November 2019 (5.8 days per employee).  Given the impact on business productivity, it’s shocking that 1/3 of employers don’t track sickness absence! 

Without tracking, you have no idea why your employees are off sick and won’t be providing the right support. You need to spot the trends to identify what people seem to be struggling with often—mental health, physical health or whether it’s linked to work stress. Get a system in place, hold people accountable and start addressing those issues. 

The more you let absence slide, the more it’ll cost you in productivity. Without getting to the root of a problem, you can’t solve it. 

Bite back with Tercus HR  

2025 is the year to take HR seriously. The demands on businesses seem never-ending, which can be disastrous for SMEs with smaller budgets and fewer resources. 

Now is the time to get proactive, not reactive. Tercus HR is here to help you stay ahead, stay compliant and safeguard your business. 

Contact us today for tailored HR advice.