A Year In Review And What 2026 Has In Store For SMES

A Year In Review And What 2026 Has In Store For SMES

Happy Christmas from HRforall

As the year wraps up and everyone starts counting down to a well-earned break, I’ve been reflecting on how much has happened in my business and in the lives of the clients I’m lucky enough to support.  HR never has a quiet year, does it?  But this one has felt especially full with lots of change, lots of learning, and plenty of moments where I’ve been reminded why I love the work I do.

One of the biggest wins for HR For All this year has been something I’m genuinely proud of – every single new client came via referral.  For a small HR consultancy, that’s huge.  It means people trust the work I do enough to recommend me to others, and I really can’t ask for more than that.  Add to that a steadily growing client base, and it’s been a year where the business has felt strong and aligned with what I set out to build.

The work itself has been varied (which is how I like it!).  I’ve supported two significant restructures, each with its own sensitivities and complexities. I’ve carried out a particularly challenging sexual harassment investigation – the sort of case that needs careful handling, nuance, and a fair bit of moral courage.  I’ve also written handbooks and updated policies, delivered bespoke training sessions, and acted as a sounding board for managers who needed reassurance that they’re doing the right thing.

It’s been a year of proper partnership work, not just firefighting, but helping businesses think deliberately about culture, expectations, and fairness.

Every year has its patterns, and 2025 was no different.  A few topics cropped up repeatedly with my SME clients:

  • Managing Performance (and confidence gaps)

I’ve had more conversations than ever with managers who feel uneasy about tackling performance concerns.  Not because people don’t care, but because it’s uncomfortable.  No one wants to demotivate someone or cause conflict, but avoiding the issue only creates bigger problems later.

A big focus of my consultancy this year was helping managers build confidence, understanding what “good” looks like, having early conversations, and putting supportive frameworks in place. When managers feel more equipped, the entire business feels the benefit.

  • Long-term sickness absence

This has become a major challenge for many SMEs. Mental health, chronic conditions, and delayed NHS treatment all played their part. Businesses often felt stuck wanting to support people but also unsure of their legal boundaries.

Much of my work involved helping businesses balance empathy with clarity, structured reviews, OH referrals, reasonable adjustments, and navigating those long timelines.

  • Mediation and conflict resolution

Not formal grievances, just those simmering issues where people aren’t quite clicking.  I did more mediation work this year than ever, and it reminded me how powerful neutral facilitation can be.  Most of the time, people simply need to be heard.

  • Legislation

Employment law certainly didn’t sit still.  A few highlights that shaped conversations with clients (and will continue to in 2026):

  • The extended unfair dismissal claims window

The biggest headline-grabber. Moving from a “day one” qualifying period to a six-month claim window means businesses no longer have as much built-in protection during the early days of employment.  This isn’t a reason to panic, but it is a reason to tighten up your onboarding, probation reviews, induction plans, and performance management.  A six-month window is generous, and sloppy processes will be exposed more easily.

  • Carer’s Leave and Neonatal Leave

Both moves reflect the government’s attempts to modernise family-friendly rights.  Businesses will need to make sure their policies are updated and managers understand how to handle requests confidently.

  • Flexible working from day one

This continued to challenge SMEs, especially those with practical or operational constraints. Getting decision-making right, fair, reasonable, and properly documented became ever more important.

If 2025 was about adjusting to a post-pandemic working world while juggling legal changes, then 2026 is going to be about bedding in better foundations.  Here’s where I think SMEs should focus their energy:

  • Strengthening your people processes

If you only do one thing next year, make it is this. Solid probation reviews, clear onboarding plans, early performance conversations, well-communicated policies – they all matter more than ever now that employees have a longer window to bring claims.

  • Upskilling your managers

Honestly, this is one of the biggest returns on investment you can make.  Confident managers prevent problems.  They create stability.  They retain people.  Training doesn’t need to be complicated; it just needs to be practical and relevant.  That’s something I’ve seen really land well this year.

  • Prioritising wellbeing and managing absence well

Absence isn’t going away.  Having a clear process, regular and supportive touchpoints, and access to good OH advice can dramatically improve outcomes.

  • Investing in culture and conflict prevention

You don’t need beanbags or glossy values posters. What you do need is trust, clarity, and good communication.  Mediation, facilitated conversations, and honest dialogue go a long way.

Closing the year on a high

As I look back on the past year, I’m grateful for the businesses I’ve supported and the work we’ve done together.  Whether it’s guiding a manager through a tricky conversation, helping a team navigate change, or putting in place the policies that keep a business safe and fair – it all comes down to people.  Real people, with real pressures, doing their best.

HR For All has grown this year in a way that feels very natural and very right, through trust and ongoing partnership.  I’m excited to carry that momentum into 2026.

If you’re reading this as an employer, my advice is simple: take stock, tighten your foundations, support your managers, and don’t wait until something becomes a problem.

And if you need a hand with any of it, you know where I am.

From my family to yours, have a very happy Christmas and magical New Year.

See you in 2026!