It’s been just over 12 months since we started Empowr HR and it’s fair to say we’ve dealt with many HR queries over that time. We thought it would be useful to run through the top 5 HR themes, outline the main HR challenges being faced by SMEs in South Yorkshire, and give some reasoning as to why that might be the case.

NUMBER 1: Documentation

It’s a boring but true answer, easily the most common reason for us to get involved with clients this year is to update documentation in response to changes in employment law. You would have to had be living under a rock to not have heard of the Employment Rights Act and if you have attended our HR updates or you’re an Empowr client you’re probably sick to death of hearing about it. 

With that being said, employment documents should be a living and breathing document. As legislation continues to  develop and case law evolves, businesses need to ensure their documentation reflects current legal requirements, how they operate and support consistent decision making.

A note of caution, businesses also need to ensure their policies and processes reflect what they are actually doing, but up to date contracts and handbooks is a good starting point!

NUMBER 2: Absence Management

Coming in second place was absence management. From sore backs, diabetes, ADHD, mental health and the odd hangover, we’ve pretty much seen it all this year. We have also seen a slight rise in absences related to neurodiversity and mental health, particularly in employees who have been signed off on long term sickness.

NOT SO FUN FACT : ONS Data for April 2025 to March 2026; the most recent figures available to us, show that in the South Yorkshire region there are more economically inactive people signed off for long term sickness than there are students….

Employers are looking for practical ways to manage both short-term and long-term absence, maintain productivity and support employee wellbeing without creating inconsistency or unnecessary risk. The balance of being supportive whilst also ensuring the business continues to function is becoming more difficult. The 2026 reforms, including payment of Statutory Sick Pay from the first qualifying day and wider eligibility, have likely made this an area requiring even greater attention. 

The feedback we are getting from clients is that there is a feeling that sick notes are incredibly easy to get hold off and that GPs are reluctant to provide any information, and instead would rather push employers into engaging with occupational health. This is especially prevalent for long term absences where mental health is a factor or the sole reason for their absence.

NUMBER 3: Ending Employment

In third place we have received a significant number of enquiries about short-service dismissals. The context for this is that previously (and still the case until the end of 2026 currently) employers have enjoyed a two year qualifying period for ordinary unfair dismissal claims. Whilst not entirely risk free; considerations around discrimination and automatically unfair reasons have always existed, the two years have meant that many employers have been able to dismiss employees swiftly and without following a full process if the employee isn’t right for their business.

Those employee protections are changing with the qualifying period for unfair dismissal reducing to 6 months (from January 2027) and therefore we have seen an increase in businesses looking to manage underperformance before this change comes into effect.

NUMBER 4: Disciplinaries

Disciplinary and queries around managing misconduct takes the 4th spot in our list and remains another of our busiest areas of work. Managing misconduct or poor behaviour is rarely straightforward, particularly for managers who only encounter formal disciplinary situations occasionally. Despite working in HR for a while now, we’ve had a couple of firsts as well in terms of reasons for disciplinary action which is rare nowadays (but that’s a story for a different time).

At a time when recruitment remains difficult across many sectors, employers are also balancing the need to maintain standards with the challenge of retaining experienced staff. The change to the qualifying period for unfair dismissal has prompted employers to look at their staff and make changes to the way in which they address misconduct and inappropriate behaviours within the business which will likely continue to be the case well into 2027.

NUMBER 5: Overtime and Pay Queries

Rounding off our top 5 list and the most surprising to us, are queries regarding Overtime and Pay. This is an area that has jumped up the list over the last few months with pay and overtime enquiries becoming increasingly common. Rising wage costs, changes to statutory rates and ongoing developments in employment law mean employers frequently seek clarification on overtime entitlement, deductions from wages, minimum wage compliance and contractual pay arrangements.

We know that even small payroll errors can affect employee morale, damage trust and create unnecessary disputes, making this an area where proactive advice often saves significant time and cost later.

Another area where we are spending more time advising clients is likely due to the increases in minimum wages meaning that employers are more reluctant to take on younger employees outside of apprenticeships. In challenging times many businesses are seemingly favouring experience, especially when the gap between wage rates is closing.

SUMMARY:

Running a business has never been more challenging from an employment perspective. Alongside the daily demands of attracting, managing and retaining staff in recent years, businesses have also had to contend with economic uncertainty, inflationary pressures, increases in the National Living Wage, changes to National Insurance contributions, and one of the most significant programmes of employment law reform in a generation (now breathe!). The introduction of the Employment Rights Act 2025, together with its phased implementation throughout 2026 and 2027, means employers are reviewing policies, updating contracts and preparing for new obligations affecting everything from statutory sick pay to dismissal rights. 

It isn’t all bleak though, there is major backing and progress in the reopening of Doncaster Sheffield Airport, the development of the technology hub ‘Gateway One’ in Doncaster and the Sheffield and South Yorkshire tech ecosystem being ranked as the UK’s number one rising star. Tourism is also up in South Yorkshire generating an estimated £4 billion for the local economy and supporting around 33,000 jobs across the region. All of the above suggests that South Yorkshire is still a thriving business community and there are plenty of opportunities, you might just need a little bit of HR Support as you go…

Contact us at hello@empowr.uk if you want to join our community and get the support you need when dealing with HR issues.