HR's Impact on Business

Everyone thinks employment law changes gradually. I disagree. This year proved employment legislation can reshape payroll costs overnight. 28 more reforms are scheduled that will fundamentally alter people management across the UK. What already happened while most teams were focused elsewhere: The Minimum Wage Reality: → National Living Wage jumped £0.77 to £12.21/hour (21+) → 18-20 year olds received £1.40 increase to £10.00/hour (biggest increase ever) → 3.2 million workers affected immediately The Tax Calculation Changes: → National Insurance rate: 13.8% → 15% → Earnings threshold dropped from £9,100 to £5,000 → Typical cost increase: £2,100-£2,270 per full-time NLW employee New Family Support Requirements: → Neonatal care leave launched with day 1 entitlement → Up to 12 weeks leave for NICU parents → Statutory pay requires 26 weeks' service + £125/week minimum earnings → 60,000+ families now eligible annually Restructuring Process Changes: → Fire & rehire penalties increased 25% on unfair dismissal compensation → Maximum punishment: 112.5 days uncapped pay per person → Tribunal process overhauled with digital-only filing requirements The 28 reforms approaching include: → Day 1 unfair dismissal rights (subject to parliamentary approval). → Mandatory guaranteed hours contracts. → Extended tribunal claims timeline (3→6 months to file). These aren't isolated policy adjustments. Each change builds towards a completely different employment landscape where flexibility costs more and compliance requirements multiply. Organisations treating these as individual updates rather than systematic transformation will face significant gaps when the Employment Rights Bill provisions take effect. The mathematics of being unprepared: → One improper dismissal under new penalties = 112.5 days compensation maximum. → One payroll miscalculation with new NI thresholds = potential HMRC scrutiny. → One missed neonatal leave entitlement = tribunal exposure and operational disruption. Which of these 2025 changes has created the biggest adjustment challenge for your organisation?

HR should sit at the board table. Not as a courtesy. As a driver of value.   In most startups, HR is treated like admin. Important, but pushed to the side. Hire fast. Stay compliant. Keep the lights on.   That’s a mistake.   Your valuation is a story about future cash flows. Future cash flows come from execution. Execution comes from people.   So people strategy isn’t a support function. It’s a growth lever.   Here’s what changes when HR is in the boardroom: 1. Hiring becomes capital allocation. Every senior hire is a bet. Are we placing those bets intentionally or reactively? 2. Retention becomes a margin question. Losing a high performer isn’t just emotional. It’s lost productivity, hiring cost and cultural drag. 3. Leadership pipeline becomes risk management. If two people leaving would materially damage the business, that’s a board-level risk. 4. Culture becomes strategy alignment. Are incentives, behaviours and performance standards aligned with the company we’re trying to build?   The biggest turning points in a company aren’t product releases or revenue milestones. They’re people decisions: who you hire, who you promote, what behaviours you reward.   If you’re a founder, ask yourself: Is your Head of People presenting metrics that tie directly to growth, margin and risk? Or just engagement scores?   HR at the board table isn’t about status. It’s about acknowledging what actually drives enterprise value.

I run my own business, spend my time inside other people’s businesses and honesty, I’m getting increasingly concerned for small business owners right now. My clients come to me with people problems, messy situations and decisions they’re unsure about. I guide them on what they can and can’t do within employment law. They’re expected to follow process, evidence everything properly, and carry the risk if they get it wrong. On paper, it sounds straightforward. In reality, the rules are tightening, expectations are rising and the margin for error is getting smaller by the minute. All of it is being shaped in a way that feels completely disconnected from what it’s actually like to run a small business. I’m finding myself in this uncomfortable position where I’m advising clients on what they “should” do, whilst knowing full well the burden it puts on them. It’s not just about doing the right thing. It’s about having the time, the headspace, the management capability and the cash flow to do it properly. Thing is, a lot of business owners are already stretched to their limit. So when I’m saying things like: you need to follow a full process you need to document this you need to evidence that you need to consider risk here …what I’m really saying is: this is going to take time you don’t have and cost money you weren’t planning to spend and if you don’t do it, it could cost you even more. I’m not for a second suggesting businesses should ignore employment law or treat people badly. There are absolutely employers out there taking the piss and they should be held accountable. But what I am seeing, more and more, is good business owners being squeezed - by rising employment costs, increasing legal complexity and by a system that assumes they have the infrastructure of a corporate. In reality it’s them, a small team and a constant juggle of priorities. Now we’re heading into even tighter legislation, reduced flexibility and greater scrutiny. At some point, you have to ask… who is this actually designed for? Because it doesn’t feel like it’s designed for the people I work with every day - the ones building something from scratch, creating jobs and trying to do the right thing whilst keeping the whole thing afloat. Instead, it feels like we’re being pushed into a position where caution overrides common sense and fear starts to drive decision making. This is where things start to break - business owners becoming too afraid to hire, too nervous to manage performance, or too overwhelmed to deal with issues early. Everything is getting worse not better. I don’t have a neat solution here but I do think we need to start having more honest conversations about what’s actually happening on the ground. From where I’m sitting, this new government BS isn’t about protecting businesses or employees properly. Instead it’s creating pressure, confusion and risk and small business owners are the ones carrying most of it. That worries me!

20 Yrs in #HR Lesson No. 3 : "Are you a HR Business Partner or a Business HR Partner?" After 20 years as an HR Professional and being a HR Business Partner and Leader across Plants, Sales/Commercial, Corporate and GCC HR , I’ve learned the above truth that has shifted the whole narrative for me in terms of my thinking and gaining acceptability with my business leaders. I don't think our business schools teach HR students to think Business First (Mostly it is about holding the HR Flag High) . Early in my career, I mostly focused more on talking the HR Language around #HR policies, engagements , compliance, and people processes. My real eye opener came while presenting with the above mindset to a Senior Leader who asked me a a simple question "Atulaya , what's in it for the business and why should we do this ? " I quickly realized that to earn a seat at the table, I needed to build business acumen and speak the language of business and connect the dots with HR. Understanding financials, market dynamics, and Business strategy wasn’t just a nice-to-have—it was critical. When I started aligning HR initiatives with business goals—whether it was tying talent strategies to revenue growth or building cultures that drive innovation—I saw the shift. I wasn’t just at the table; I was shaping the conversation. This mindset gave me confidence to influence C-suite decisions, build trust with stakeholders, and create HR strategies that deliver measurable impact. By diving deep into the business—its challenges, goals, and numbers—I went from executing HR tasks to co-creating the future of the organization. Here’s what I’ve learned to get that seat at the table: 1) Know the Business Inside Out: Study your company’s financials, strategy, and market position. Speak in terms of ROI, growth, and competitive advantage. 2) Solve Business Problems: Align HR initiatives with organizational priorities—whether it’s talent acquisition for expansion or leadership development for transformation. 3) Build Credibility Through Data: Use metrics to show how HR drives business outcomes, from employee engagement to productivity gains. 4) Be a Trusted Advisor: Listen to leaders, understand their pain points, and offer solutions that blend people strategy with business needs. 5) Be Predictive : about the Future of Your Business and Connect it with the Potential People risks and asks . Without external perspective you cannot be predictive. HR leaders, let’s stop waiting for an invitation to the table. Let’s earn it by proving HR is a business function, not just a people function. How are you bridging the gap between HR and business strategy? I’d love to hear your thoughts! #HRLeadership #BusinessStrategy #HREvolution #Leadership #hrbp #CareerGrowth

𝐇𝐑 𝐢𝐬 𝐚 𝐭𝐡𝐚𝐧𝐤𝐥𝐞𝐬𝐬 𝐣𝐨𝐛? 𝐖𝐡𝐞𝐧 𝐈 𝐟𝐢𝐫𝐬𝐭 𝐡𝐞𝐚𝐫𝐝 𝐭𝐡𝐢𝐬, 𝐈 𝐫𝐞𝐟𝐮𝐬𝐞𝐝 𝐭𝐨 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐢𝐭. We're the first call when there's a crisis, but the last consulted for strategy. We're expected to: ▸ Be mind-readers for leadership ▸ Fix decades-old culture issues overnight ▸ Master 10+ specialties from compliance to coaching ▸ Remain emotionally bulletproof Yet in downturns, we're paradoxically: ✓ Deemed "non-essential" (while rebuilding morale) ✓ Cut from development budgets (while upskilling others) ✓ Blamed for the management decisions we didn't have a seat at the table This isn't a complaint - it's a wake-up call. HR doesn't need gratitude. We need: 𝟏. 𝐒𝐞𝐚𝐭𝐬 𝐚𝐭 𝐭𝐡𝐞 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐭𝐚𝐛𝐥𝐞 Not just to clean up messes, but prevent them 𝟐. 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐢𝐧 𝐨𝐮𝐫 𝐨𝐰𝐧 𝐠𝐫𝐨𝐰𝐭𝐡 Why do we prioritise everyone's development except our own? 𝟑. 𝐌𝐞𝐭𝐫𝐢𝐜𝐬 𝐭𝐡𝐚𝐭 𝐦𝐚𝐭𝐭𝐞𝐫 ✖️ Inputs ✅ Outputs The truth? Companies that undervalue HR pay the price in: • 34% higher turnover • 2x longer leadership vacancies • 50% more compliance incidents I no longer wait for thanks. I build systems that prove our worth. Agree? https://buff.ly/HyJDQuF #HR #workplace #strategicHR #beyondbias

🚨 Day-one unfair dismissal rights are coming 🚨 From 2027, UK employees will no longer need two years’ service to bring an unfair dismissal claim. This changes how you hire, onboard, and manage from the very start. Probation periods, performance tracking, and manager training can’t be an afterthought—they’ll be your first line of defence against disputes. Here’s how to get ahead: 1️⃣ Redesign probation  - Set clear review points (3–9 months is current guidance).  - If dismissal is needed, follow the new light-touch process: meeting → right to be accompanied → written outcome. 2️⃣ Train managers early  - Equip them to manage performance from day one.  - Emphasise documentation.  - Remember: redundancy is never “light-touch.” 3️⃣ Update onboarding  - Build in day-one entitlements (statutory leave, sick pay).  - Collect feedback early to spot issues before they escalate. 4️⃣ Tighten documentation  - Store probation reviews and dismissal steps securely.  - Be prepared to provide written reasons on request. 👉 The two-year “low risk” window is closing. Businesses that adapt now will not only stay compliant but also create fairer, more transparent workplaces—the kind that attract and retain top talent. 🔜 Tomorrow, I’ll share practical tips on navigating a world without zero-hours contracts—and how to keep flexibility while ensuring fairness. #EmploymentLaw #HRLeadership #FutureOfWork #WorkplaceCulture #EmploymentRights

HR is not a business partner. We’re the only function that felt the need to invent that job title, often as a way to reclaim legitimacy or justify our seat at the table. Finance, Operations, Tech or Legal don’t call themselves “business partners”. Why? Because their impact on the business model is obvious. My conviction is simple: the role of HR is to act as a people partner, because this is where the HR function creates value. One of the fundamental issues may be that we have been lagging behind in defining the financial materiality of HR. Excessive turnover is a P&L issue, not an HR metric. Losing talent costs 1 to 2 times the annual salary, before accounting for customer impact, lost productivity, and team disruption. That’s not HR data, it’s margin erosion. Non-action on people decisions is one of the most expensive strategic risks. Delaying a key hire slows revenue. Postponing workforce decisions can inflate cost structures and slow down people development. The cost of indecisiveness is often higher than a wrong decision. Control heavy cultures or management style destroy value faster than a bad process. Every extra approval layer slows the organisation. Every control designed for the 1% of exceptions penalises the 99% who create value. Empowerment and trust aren’t soft concepts. They’re operational efficiency levers with a direct P&L impact we are unable to account for today. People development should be reflected in asset valuation. People only appear as a cost in our P&L, we are not measuring development of critical skills that contribute to the resilience and performance of organisations. We have accounting rules for Capital Expenditure amortisation but not for our first asset : the people of the organisation. So when HR calls itself a “business partner,” it unintentionally reinforces a separation that shouldn’t exist. HR doesn’t support the business. HR is the business because people drive productivity, growth, customer experience, innovation, and long-term competitiveness & performance. HR has to shift from a soft language to one measuring its financial materiality with scorecards or even better an HR P&L that would highlight its value creation. How would we go about creating the People Balance Sheet ? #PeopleAtHeart #LVMHTalents #FutureOfHR (c) Olafur Eliasson, “In Real Life”

Botswana's new Employment Act is much more than a legal update; it is a signal that the future of work is becoming more people-centered, transparent, and accountable. For HR leaders, executives, managers, and business owners, compliance is important. But focusing only on compliance would mean missing the bigger opportunity. The strongest message from the new legislation is clear: how employers treat people matters just as much as the decisions they make. A few areas stand out: ✅ Fair dismissal is no longer simply about having a reason. Employers must demonstrate a fair process, including proper hearings, representation, and opportunities for employees to be heard. ✅ Retrenchment is no longer primarily an administrative exercise. Meaningful consultation, transparency, and genuine consideration of alternatives are now central to the process. ✅ Employee protections have expanded significantly, reinforcing the importance of inclusive workplaces where people feel respected, protected, and valued. ✅ Documentation and people practices matter more than ever. Policies sitting on shelves will not protect organizations. Consistent leadership behaviours and proper records will. ✅ Industrial relations are entering a new era, with clearer frameworks around strikes, lockouts, picketing, and essential services. As HR professionals, we should view this moment as an opportunity to elevate the employee experience rather than simply update policies. The organizations that will thrive under the new Employment Act will not necessarily be those with the best lawyers. They will be the ones who invest in capable managers, build trust with employees, communicate openly, and create workplaces where fairness is embedded in everyday decisions. My recommendations for employers over the next 90 days: Review employment contracts and HR policies. Train all managers on fair disciplinary and performance management processes. Strengthen documentation and record-keeping practices. Review retrenchment and consultation procedures. Update diversity, inclusion, and anti-discrimination policies. Engage employees proactively and communicate upcoming changes. The future of HR is not just about compliance. It is about building workplaces where business success and employee wellbeing can grow together. What do you see as the biggest challenge or opportunity for employers under Botswana's new Employment Act? #HumanResources #Botswana #EmploymentAct2025 #FutureOfWork #Leadership #EmployeeExperience #PeopleAndCulture #LabourRelations #HRLeadership #WorkplaceCulture

Your company isn’t losing talent… it’s *bleeding money* quietly, through wrongful dismissal cases. Kenyan courts are sending a clear message: unfair termination is expensive and former employees are now winning millions in compensation. A recent feature highlighted cases where organisations lost huge sums simply because leaders bypassed due process, ignored HR advice, or dismissed staff on a whim. And the trend is growing. Here’s the uncomfortable truth: 🔹Quick dismissals may feel efficient, but they’re legally dangerous. 🔹HR is often pressured to “just make it happen,” even when procedures aren’t followed. 🔹Executives override protocol but HR takes the fall. 🔹Employees today are more aware of their rights and aren’t afraid to litigate. The result? 🌡 Rising court awards 💸 Reputational damage 📉 Workplace morale issues ⚖ A legal environment that increasingly favours employees This isn’t just about compliance. It’s about leadership, culture, and accountability. If an organisation can’t manage exits with fairness and dignity, it reflects how they manage everything else. My take is simple: 👉 Follow the law. 👉 Respect HR expertise. 👉 Document performance properly. 👉 Handle terminations with transparency and humanity. Because prevention is far cheaper and far more ethical than a court award running into the millions. #Leadership #HR #WorkplaceCulture #EmploymentLaw #KenyaBusiness #PeopleManagement ```

Why HR Is Quitting… and Why Leaders Need to Pay Attention As an HR Manager, I’ve witnessed a growing concern across the industry—HR professionals are leaving their roles at an alarming rate. In fact, 15% quit last year, the highest attrition across any function. But it’s not just about changing jobs. It’s about being unheard, unsupported, and undervalued. Here’s why many in HR are walking away: 🔸 Minimal career progression beyond HR. 🔸 Burnout from being “always available.” 🔸 No seat at the leadership table. 🔸 Buried in admin instead of real people-focused work. 🔸 Constant budget cuts limiting impact. 🔸 Cast as the “bad cop” in difficult conversations. 🔸 Fixing fires, not shaping the future. 🔸 Blamed for retention issues we don’t control. 🔸 Carrying the emotional weight of the entire workforce. 🔸 Advice ignored until it’s too late. 🔸 Asked to drive engagement without authority. 🔸 Expected to fix culture—without leadership buy-in. When HR leaves, it’s not just their exit—it’s a reflection of deeper organizational gaps. HR isn’t just a support function. We are culture builders, people champions, and strategic enablers of business success. If we aren’t empowered, your people strategy will suffer. Let’s stop treating HR as an afterthought and start seeing it as a critical partner in building thriving, resilient workplaces. ✨ It’s time to do better—for our teams, our cultures, and our future. #HRMatters #PeopleFirst #Leadership #HRManager #WorkplaceWellbeing #CultureBuilding #FutureOfWork #EmployeeExperience #HumanResources #RetentionMatters #StrategicHR #MentalHealthAtWork #EmpowerHR #LinkedInVoice #HRLeadership