Forget top trends – here are 6 proven, people-powered strategies for success in 2025

With the internet crammed with predictions of top trends for the year ahead, we wanted to highlight a few real necessities that SMEs will need to focus on to secure success in 2025.

2024’s General Election has shaken up the world of employment law, and the October budget has introduced some changes which have severe implications for employers. These events therefore impact both the shape and timings of business planning for the year ahead, and 2025 is likely to be dominated by cost and compliance considerations.

But don’t be fooled into thinking it’s all doom and gloom. Employers who think creatively and act with integrity to put their people first will still have fantastic opportunities in the year ahead.

Tackling the rising costs of employment

For many growing businesses, the implications of the budget will create some challenges, as in effect it becomes more expensive to employ people. It may feel tempting to freeze recruitment and reduce pay rises but we would urge you to take a broader view and get expert advice on how to maximise your budgets. Remember that taking severe action can have additional knock-on effects on team morale, productivity and performance, and you risk losing great people which could cost you more if you have to replace them.

This is such an all-encompassing topic it’s bound to dominate business leaders’ agendas throughout the year, as it will have an impact on all areas of the business including recruitment, remuneration, performance and resources. Cost management is always a key part of business planning but with the new changes, it’s even more important to be on top of the financial risks and opportunities, and focused on the potential savings in tax-efficient reward schemes, as well as employee engagement, productivity and performance.

For a more in-depth look at how you can take practical steps to manage the rising costs of employment while still delighting your people, check out this recent article.

Compliance with changing employee rights laws

April 2025 will mark the biggest change to employee rights laws in 25 years and it is important that you stay on top of what is legally required. After all, you want to keep your time free to grow your business rather than be side tracked by grievances and employment tribunals. Ensure compliance with changes such as Day 1 rights and the new sexual harassment in the workplace bill by equipping your managers with the knowledge and tools they need.

It is essential to keep your policies and procedures up to date and communicate any changes to everyone in your organisation to avoid potential pitfalls.

Onboarding and probationary procedures must be in place to protect yourself as an employer before the Day 1 rights become statutory. No doubt you already aim to operate best practices in your organisation, so the changes should not come as a shock, but it is worth reiterating to your managers the importance of following transparent performance management processes especially during probationary periods.

Now is the time to conduct a thorough audit of your workforce—reviewing demographics, contractual obligations, and management structures—so that you know which areas you need to focus on ahead of the changes to ensure a smooth transition and protect yourself and your business from the risk of potential disputes.

For more information on the changing face of employee rights, keep an eye on our employment rights hub page.

Recruitment, reward, retention

Recruitment always tops the list of concerns clients contact us about, and 2025 will be no exception. With current skills gap shortages among many challenges for employers, recruitment continues to be a tough gig and it really pays to invest in doing it right.

With fewer candidates available, you need to focus on making your organisation a place that top people want to work, in other words you need a a compelling employer brand.

Meaningful work experience

Salary is no longer the be all and end all. Your people want professional development opportunities, and a supportive company culture. By embracing initiatives like flexible work arrangements, ESG practices, wellbeing programmes and career progression plans, you can attract and retain skilled employees who align with your values and goals and are more likely to stay for a long time.

Values

Be clear about your company values and embed these through all your processes, starting with recruitment. This will ensure that you attract people who are a good fit from the start.

Salary benchmarking

Conduct a benchmarking exercise to ensure that you are offering a competitive salary within your sector.

Leverage tech

AI and technology can revolutionise the efficiency of your workplace, freeing up valuable time by handling repetitive tasks, streamlining processes, and offering powerful insights through data. For businesses like yours, this isn’t just about keeping up with the times; it’s about staying ahead. Imagine your teams focusing on what they do best—creativity, strategy, and problem-solving—while AI takes care of the rest.

But, as exciting as these opportunities are, they bring change, and that’s where good HR practices come in. Integrating AI successfully isn’t just about the tech; you need to prepare your people. If you adopt a strategic approach you will need to consider the following:

Training

Upskill your team to work confidently with new tools

Redesigning roles

As AI automates repetitive tasks, roles will evolve to complement AI’s output and humanise it for best use within your organisation.

Communicate

Change brings uncertainty and many people fear that AI will take their jobs. Be clear and open about how you plan to use AI in your business.

When managed well, these changes build trust and keep your employees engaged and motivated, ensuring your business thrives in this new era of efficiency.

Diversity, Equity and Inclusion (DEI) – think outside the box

Taking an innovative approach to DEI goes beyond meeting quotas or policies—it’s about encouraging a truly inclusive culture so that your business benefits from a wide range of diverse perspectives. The broader the experience of your team the more creative the ideas that drive creativity, innovation, and problem-solving are likely to be produced. Did you know that Google and Microsoft run specific neurodiverse hiring programmes as they have proven it strengthens a workforce ‘with innovative thinking and creative solutions?’

If you prioritise DEI with bold, forward-thinking strategies you will not only attract top talent from diverse backgrounds, but your organisation will be seen as an environment where everyone feels valued and empowered. Giving people a sense of belonging boosts employee engagement, increases performance, and strengthens your company’s reputation, all of which are key to staying competitive and successful amidst change.

Right structure to deliver strategy

Your success in 2025 will hinge on having the right people in the right roles and equipping managers to lead effectively. Research shows that employees often leave due to poor management rather than dissatisfaction with the company itself.

Upskill your managers

Not only do they need to engage, support, and inspire their teams, but they need to be able to handle difficult conversations well and conduct (and document) performance reviews to get the most out of your people and solve issues before they escalate upwards to your door.

Designing flexible organisational structures

As businesses adapt to AI, automation, and shifting market demands, you will need to be agile to cope with evolving roles while staying competitive. Mapping out your expected requirements for the next three years will enable you to identify roles that will need filling in that time and whether you have people in your team who could be developed for those positions.

Leadership development

Invest in coaching your top people so that they can handle conflict and create a shared vision.  An aligned leadership team will work efficiently to drive innovation and growth.