The survey explores several critical areas:
Key Insights for HR Directors and Business Leaders:
• HR Priorities for 2025: Adapting to the new Employment Rights Bill is the top priority for businesses in 2025. The bill introduces significant reforms that employers must navigate. Many businesses express concerns about compliance challenges and increased costs, particularly regarding Day One rights to Unfair Dismissal and Statutory Sick Pay.
• Diversity and Inclusion (D&I): Surprisingly, D&I has seen a sharp decline in priority, dropping from 27% of businesses ranking it in their top five priorities in 2024 to just 5% in 2025. This shift raises questions about whether businesses feel that D&I initiatives have been adequately addressed or are being deprioritised in tough economic conditions.
• Workplace Sexual Harassment: The introduction in 2024 of legal obligations on employers to take reasonable steps to prevent sexual harassment in the workplace have led to increased training initiatives. However, 60% of businesses have yet to implement such training, with a third saying that such training is still in development, highlighting the need for continued progress.
• Business Confidence: Over half of the businesses surveyed expect UK trading conditions to worsen in the next 12 months. However, HR managers remain optimistic about their own companies’ outlooks. The skills gap continues to be a major challenge, with recruitment and retention expected to remain difficult.
• HR Technologies and AI: Despite advancements in AI technologies, interest in AI for HR purposes is waning. Businesses are more aware of AI tools, but trust in their reliability and usefulness remains low, particularly in recruitment. Only 46% of businesses have a good understanding of the legal risks associated with AI on HR, especially concerning data protection and discrimination.
• Flexible Working and Whistleblowing: While flexible working initiatives are less of a priority this year, whistleblowing initiatives have gained traction. More businesses recognise the long-term value of fostering a transparent and accountable culture.
Rena Magdani, Partner and National Head of Employment at Freeths, commented:
“Our 2025 Employment Survey reveals a complex and evolving HR landscape, with a few surprises this year, particularly around D&I and AI. While businesses face uncertainty regarding new employment laws and challenges in the workforce, it is good to see that so many remain focussed on ensuring compliance and improving transparency. The valuable findings from our survey will provide HR professionals with the tools they need to navigate these changes effectively.”
See the full report - https://res.cloudinary.com/dn5qdgtnh/image/upload/v1741359989/PDFs/Freeths_Employment_Survey_Landscape_Final.pdf#msdynmkt_trackingcontext=e5c4195a-353a-4b1b-ae01-275b3b240300
