The number of businesses facing a HR challenge in the UK is increasing as running a business gets tougher.

A survey by investment bank Goldman Sachs found that the UK is becoming a more challenging place to grow a business. As well as increasing costs, one of the biggest problems companies face is in HR, the findings uncovered.

From tricky staffing issues and grievances to workplace disputes, recruitment and retention, organisations are struggling to keep up. 

Part of the problem is that smaller businesses don’t have in-house HR expertise. Or whoever deals with HR has only a small area of understanding.

According to software platform HiBob, these challenges stem from businesses being unable to fund a full-time HR manager. And signing up to monthly fees for HR consultants is often seen as wasteful. That’s because the organisation won’t always require all the services on offer.

Sickness is a rising HR challenge

The HR challenge facing most businesses is long-term sickness and recruiting talent. That’s according to the Chartered Management Institute’s Petra Wilton.

In an article, she writes that sickness is becoming one of the toughest challenges for HR and management. She also points to a report stating toxic work cultures. These have recently made headlines and highlight this increasing HR challenge for UK businesses.

Other challenges facing businesses

Software company Zellis spoke to the chief HR officers of a number of the UK’s leading companies. It asked them to outline the biggest HR challenges facing them in 2025.

The results make interesting reading. They highlight the need to have experts at hand to ensure your business tackles the challenges.

Talent and recruitment

According to the research, recruiting talent topped the poll of the 10 HR leaders. One of the key areas where there was difficulty was in finding employees with the right blend of expertise and knowledge. They said that recruitment should be focused on future-proofing the organisation’s talent requirements. 

As well as recruiting, retaining talent is a big concern for business. Recruitment is one of the biggest costs for companies. Retaining the best talent is, therefore, crucial in economically-challenging times. Changing your HR culture is essential to manage these costs. 

“Without the right culture, without people being valued, without the right ways of analysing performance and planning for succession, you can’t help people achieve their potential,” said Samantha Brook, Severfield PLC’s Group HR Director as part of the Zellis study.

Data and technology

Another challenge is in the ethics posed by technologies such as AI. Businesses see the potential but, in some areas, there was concern about governance and control. However, they point to the efficiency AI has on automating routine tasks. They believe good HR governance will mean a balance is struck between using AI efficiently whilst operating ethically. 

How to navigate HR challenges

If you are facing HR issues in your business, then we can help you. One of the biggest ways we help clients is that we offer advice only when you need it. Without long-term contracts, you aren’t paying something for nothing!

Other ways we help include:

• Recruitment. We make sure the right people are in the right roles.
• Culture. Our measures focus on employee engagement, which increases productivity through changing your business’s culture. This will also help you reduce sickness, as your people are less stressed and less inclined to take time off.
• Workplace mediation. Workplace conflict can also create an increase in sickness. Mediation can solve these problems.

These are just a number of ways in which we can help you face your HR challenges. Contact us today for more details.