Demand for HR services expected to rise sharply

A new poll conducted by the UK’s largest HR consultancy has found that 80% of UK SMEs are requiring additional HR support this year. This is due in part to redundancies continuing to rise and a greater focus on supporting remaining employees. The poll results coincide with the news that the number of permanent job postings remains below 2024 levels (-32% to be precise; APSCO).

A poll *of more than 390 HR specialists across the UK revealed that 8 in 10 (80%) SMEs anticipate there will be a greater need for HR support within their business in the coming months.

Driving this demand is an increased focus on employee wellbeing (49%), compliance and legal guidance (22%), and better cost management and operational efficiencies (20%).

Despite ongoing media reports of widespread redundancies, the findings also revealed that while redundancies remain likely for many SMEs in the coming months (38%), one in seven (14%) now plan to make new hires.

Of these new hires, two-thirds (64%) will be hiring for permanent roles compared to temporary positions (18%), whilst one in five SMEs (19%) stated they have no hiring plans in the next 12 months.

Commenting on the findings, Stacey Mead, HR Director at The HR Dept, said:

“The results of our research indicate that with the ongoing challenges such as the rise in employer’s National Insurance Contributions, the Employment Rights Bill and economic uncertainty, small businesses are shifting their attention towards consolidation and managing their core staff.

“The increased demand for HR support in areas such as developing employee wellbeing policies suggests that small business owners are considering both their current and long-term people needs. By improving their employee wellbeing support, businesses can help to create a positive and safe workplace, ensuring higher retention and reducing the need for hiring costs.

“With a greater preference on permanent hires over contract workers, small businesses appear to be shifting away from taking a short-term approach to their hiring towards a longer-term view, especially in light of the expected changes to zero-hour contracts under the employment rights bill.”

“In the coming months, HR professionals will play a key role in helping employers to develop effective reward and benefits initiatives and maintain employee wellbeing.”

*Poll carried out by The HR Dept

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