A New Year, A New HR Strategy: Steps for Success

 

A solid HR strategy starts with understanding what worked and what didn’t in the past year. We often think of these things on the fly but carving out time to be intentional about this will have positive effects for 2025! Consider these key areas: 

 

• Employee Engagement: Did engagement scores improve? According to a 2023 CIPD survey, UK companies with highly engaged employees reported 21% higher profitability. Review feedback from surveys or pulse checks to identify trends. If you haven’t started these yet, chat to us as there are plenty of free platforms and hassle-free ways to get you started. 

 

• Retention Rates: How did turnover impact your organisation? This is a bit tougher to face and be honest with yourself about but vital to address these reasons so you can adjust going forward to prevent repeated patterns. Research from Oxford Economics shows the average cost of replacing an employee in the UK is £30,614, emphasising the need for retention-focused strategies. It all effects the bottom line in the end! 

 

• Learning and Development (L&D): Did your L&D initiatives align with business objectives? Assess participation rates and outcomes of training programs. Maybe your L&D was less formal last year, this would be a good thing to focus on going forward. Do chat to Lucy in our team if you’d like to know more about how we can help. 

Compile insights from these areas to create a snapshot of your HR function’s impact on business performance. 

 

For SMEs in the UK, setting realistic and impactful HR goals can make all the difference. Aligning HR initiatives with business objectives doesn’t have to be resource-intensive. Use the SMART framework (Specific, Measurable, Achievable, Relevant, Time-bound) to define manageable goals. For example: 

 

• Talent Acquisition: Simplify and streamline your hiring process by setting a goal to reduce time-to-hire by 10%. This could involve updating job descriptions or leveraging employee referrals. 

 

• Leadership Development: Introduce informal mentoring or peer-coaching opportunities to build leadership capacity within your team. This can be done with minimal cost and has the added benefit of fostering stronger internal relationships. 

 

• Workplace Culture (D&I): Focus on small but meaningful steps, such as ensuring job adverts are inclusive or implementing flexible working policies to attract a diverse range of candidates. Even incremental improvements can have a big impact over time. 

 

By tailoring your goals to the size and resources of your business, you can achieve significant results without overextending your capabilities. 

 

HR should act as a strategic partner, not a standalone function. Work closely with leadership to ensure alignment by: 

 

• Understanding Priorities: Identify the top business goals for 2025, such as expanding into new markets or launching innovative products. 

• Mapping HR Contributions: Define how HR initiatives—like recruitment, retention, and employee development—directly support these objectives. 

• Leveraging Data: Use people analytics to link workforce trends to business outcomes. 

 

The modern workplace requires flexibility and forward-thinking approaches. To build an agile HR strategy: 

 

• Embrace Technology: Adopt HR tech platforms to streamline processes. A Capterra report found that UK businesses using HR software reduced administrative workloads by 40%. 

• Promote Continuous Learning: Encourage employees to upskill with short, targeted courses. Companies that invest in upskilling see 30% higher employee satisfaction, according to a report by the Open University. 

• Encourage Feedback: Regularly solicit employee input to ensure initiatives remain relevant and impactful. 

 

The best strategies are dynamic and responsive. Establish KPIs to measure the success of your HR initiatives. For example: 

• Recruitment Metrics: Track time-to-hire, quality of hire, and cost-per-hire. 

• Engagement Scores: Monitor employee satisfaction through regular surveys. 

• Performance Indicators: Assess the effectiveness of training programs with pre- and post-assessments. 

 

Review these metrics quarterly to adapt your approach as needed. 

 

Local businesses reaping the benefits of strategic HR initiatives include: 

• A Manchester Retail SME: This business streamlined its recruitment processes, cutting time-to-hire by 15% through recruitment support services (Source: Internal HR consultancy report, 2025). 

• A Charity Based in Manchester: By enhancing workplace culture with tailored HR workshops, the organisation saw a 20% boost in staff retention (Source: Charity Sector HR Case Study, 2025). 

• A Construction Firm in Greater Manchester: Partnering with an HR compliance consultant, this firm successfully aligned its policies with legal requirements, avoiding costly penalties (Source: Construction HR Compliance Audit, 2025). 

 

The new year offers a fresh start to align HR efforts with strategic business objectives. By reflecting on the past, setting SMART goals, fostering agility, and continuously measuring progress, your organisation can achieve impactful results.