It’s never been easy running a business. But growing numbers of employers are acknowledging that it’s feeling more difficult and frustrating than ever.
There are all the pressures from rising costs which businesses are continuing to battle with. And for a lot of employers, managing people has become one of the most complex and demanding aspects of running their company. When it comes to HR issues, it can seem as though the goalposts are continually changing. If you feel like it’s a never-ending battle of trying to remain compliant while protecting your business from significant legal and financial risk, you’re not alone.
Businesses are facing a substantial volume of employment law changes
Employment law has always evolved over the years. But the recent pace of change is leaving a lot of employers struggling to keep on top of everything required of them. New regulations, changes to existing rights, enhanced employee protections, increasing requirements for better workplace wellbeing… no matter whether you feel they are positive or negative developments, most employers would agree they’ve made everyday people management decisions feel a lot more complicated.
And the arrival of the Employment Rights Act has created many additional challenges for employers. Staying informed can feel like a full-time job in itself! Policies that were compliant a few years ago (maybe even just 12 months ago) are likely to now need reviewing. Some management processes might no longer meet current requirements. And of course, the challenge isn’t only understanding the law and making sure policies and procedures reflect the latest requirements. It’s also making sure managers understand it all too and are applying it correctly and consistently. That’s never been easy at the best of times. But the amount of change that’s happening currently can make it feel very daunting indeed.
The growing threat of an employment tribunal
It’s no surprise that businesses are growing increasingly worried about being taken to tribunal.
Even if you’re confident you’ve complied with everything necessary, the cost of defending a claim is considerable. The time commitment alone can be huge. And even if there’s a legitimate concern about an employee’s conduct or performance, a tribunal can still decide against you because you deviated from procedure or couldn’t provide all the necessary documents or evidence.
One of the most common frustrations being expressed by employers is their perception that employment tribunals are increasingly favouring employees. Whether that’s the case or not, there’s no denying the risk level for employers has gone up over the past few years. Trying to protect your business from every potential vulnerability is getting harder. For example, this landmark case confirmed that even non-verbal expressions could amount to workplace harassment and discrimination. The time limit for employment tribunal claims is extending from three to six months too, which will inevitably mean more claims being submitted.
And with the qualifying service requirement for unfair dismissal reducing from two years to six months in January 2027, that will raise the risk level even higher. The pressure’s on to make sure recruitment processes are delivering, the probationary period is being used proactively and that managers are properly reviewing new recruits and dealing promptly and effectively with performance management issues.
The challenges of AI
On one hand, artificial intelligence has created all kinds of opportunities for businesses. Unfortunately, when it comes to HR matters, it’s also created a lot of headaches and all kinds of new problems. For starters, there’s the way that employees are using AI. Yes, it can help with productivity. But at the same time it can expose businesses to significant risks if sensitive information is being entered into public AI platforms or if decisions are made using AI-generated output without appropriate checks and reviews.
Use of AI tools in making HR decisions poses risks too – for example, perpetuating biases in recruitment decisions. And AI has also created another significant problem for businesses thanks to employees turning to it to help with grievances. Both in deciding whether to submit one, and then in asking the AI tool to draft it for them. And unfortunately, AI is far from perfect when it comes to getting employment law right. Which means rising numbers of businesses are being faced with lengthy grievances based on inaccurate information.
Do you need to take some of the pressure off?
When you think about the extent of what employers are now expected to deal with in terms of people management, it’s no wonder many are struggling. There are a few employers out there who might take a casual approach towards their legal obligations. But most businesses want to comply and do the right thing. They understandably feel overwhelmed however by the volume of what they need to keep track of, comply with and keep records on, and the consequences of getting something wrong.
If you’re feeling this way, it might be that you could benefit from having some professional HR support. We offer highly flexible professional HR services designed to help you:
- navigate the many changes to employment law
- implement compliant policies
- manage your employee issues effectively
- reduce your exposure to unnecessary risk.
If you’d like the reassurance of knowing you have expert HR guidance available when you need it then please do get in touch with us today.
