HR News Roundup - December

Welcome to our end of year HR News Roundup! We may be heading at full speed towards the holidays, but people matters don’t stop for Christmas. In this roundup we bring you the latest on UK HR legislation changes and how you can get ahead to prepare for the changes due to land in 2025. We also highlight the HR and employee benefits trends for next year and how the budget is impacting employer decisions in this area. To finish, we share the art of switching off and why we’re so bad at it in the UK. Let’s all agree to work on this one next year!  

'Get Britain Working': What HR needs to know

In late November, the Government published a white paper setting out their roadmap to achieving 80% employment by the end of this parliament - with a focus on workers’ rights. HR Magazine has published a helpful summary of its highlights, which include: 

• Funding for local authorities to deliver a Connect to Work programme, supporting 100,000 people back to work.

• Replacing Job Centres with a National Careers Service that will have much closer relationships with employers.

• A Youth Guarantee that promises to get everyone between the ages of 18 and 21 learning or earning.

• Reviewing the support employers need to recruit and retain people with disabilities and health conditions.

How the Employment Rights Bill is changing zero-hours contracts

The number of UK workers on zero-hours contracts is rising. Under the new Employment Rights Bill, which is currently progressing through Parliament, employers will need to provide employees with a contract that reflects their regular hours of work.

HR Director suggests this is a piece of work that employers can get ahead with preparing to ensure a seamless transition for employees on flexible contracts.

The article, which you can read here, recommends the following actions:

1. Identify employees currently on zero-hours contracts.

2. Consider if this type of contract truly reflects the way they work in practice.

3. Communicate clearly about their rights and the changes that will affect them.

Do you have questions about forthcoming legislation changes? Call our team for helpful guidance on 0161 941 2426.

Popular employee benefits for 2025

Salary is no longer a key differentiator in attracting top talent. When considering a potential employer, job seekers are increasingly looking at employee benefits and wellbeing support in conjunction with the financial rewards on offer. 

According to an employee benefits survey by iReach for Lockton People Solutions, the top ranked employee benefits fall under one of three categories:

• Mental health, e.g. Employee Assistance Programmes and workshops to improve personal resilience.

• Wellbeing support, in particular age-related benefits such as health screenings, fitness programmes and stress management support.

• Lifestyle benefits such as retail discounts, gym membership, and financial education and support.

Read the full article here.

In related news, just over three quarters of SMEs plan to reconsider the employee benefits offered by their business in a bid to relieve financial pressures and respond to workforce demands. A survey by Howden Employee Benefits and YouGov found that 77% of SMEs intend to change their offerings in 2025. Many say they will move towards pension salary sacrifice schemes in a bid to reduce the impact of the rise in Employer National Insurance Contributions announced in the Autumn Budget. Almost half of SMEs also said they are focusing on flexible offerings that allow the employee to choose their own package of benefits.

HR trends for 2025

HR Review explores the critical trends set to shape the workplace throughout 2025. There are few surprises in the list, which includes prioritising the employee experience and wellbeing, managing the transformational and regulatory impacts of AI, and implementing a skills-based talent strategy with a focus on reskilling and upskilling employees.

For HR support and guidance on tackling any of these issues, call our friendly and approachable HR Consultants on 0161 941 2426.

Four-day work week medical trial results speak for themselves

The University of Sussex and Thrive, a learning technology company, have released the results of the UK’s first medical based trial of a four-day working week. The three-month study, carried out between July and October 2024, examined the impact of a reduced working week on employee wellbeing and productivity.

The trial revealed clear improvements in participants’ physical and mental wellbeing, and productivity levels remained consistent. Perceptions of work-life balance rose by 22.5%, overall wellbeing increased by 21%, while sleep problems fell by 20% and sleep quality improved. Stress, anxiety and burnout all declined and feelings of personal accomplishment were heightened.

UK workers forgoing one week of annual leave

As we approach the end of the calendar year, the scramble to use up remaining holiday entitlement is real. Research by Offwork has found that four in ten British workers sacrifice more than a week’s holiday a year. This equates to £6.6bn worth of unused annual leave. The survey also found that people aged between 18-24 and those who work remotely are the most like to not take their full holiday entitlement.

Employers and managers alike must support their teams to switch off and take the time off they are entitled to. Prioritising work commitments over downtime can lead to sickness, stress and burnout. Buy Sell and holiday carry over schemes offer employees flexibility if they find themselves unable to take time off before the end of the year, while managers must also ensure a balanced approach to holiday allocation across their team. For anyone who struggles to switch off when on holiday, this article on HR News shares some helpful tips on how to disconnect from work.

Are your team struggling to achieve a positive work like balance? Book a free advisory call and ask us for advice.

Will you be sending Christmas cards this year?

Soaring postage costs and environmental concerns could spell the decline of the paper Christmas card may not be far away. A survey by Moneypenny found that almost half of UK businesses are not planning to send Christmas cards this year.

Moneypenny suggests picking up the phone, sending a digital message or making a charity donation as an alternative.

Whether you decide to send us a card or not this year, the P3 People Management team would like to wish you a wonderful break and we’ll be here to answer all your HR support queries in the new year. Happy Holidays!