Three HR Headaches That Keep Business Owners Awake at Night

Running a business in the UK today means juggling countless priorities, but few keep owners up at night quite like HR issues. With employment law reforms rolling out under the Employment Rights Act 2025, rising sickness absence levels at a 15-year high, fierce competition for talent, and persistent performance concerns, many SMEs face mounting pressure. These challenges drain time, money, and energy, often leading to costly mistakes, tribunal claims, or lost productivity.

At Employment Law Services, we support UK employers with expert, fixed-fee HR support and employment law advice. In this blog, we spotlight three of the most common HR headaches: recruitment difficulties, underperformance management, and sickness absence. We explain why they cause such stress and why attempting a DIY fix can backfire, plus how professional guidance can help you sleep easier.

1. Recruitment Difficulties: The Talent Hunt That Never Ends

Finding and hiring the right people remains one of the top concerns for UK business owners heading into 2026. Recent surveys show nearly a third of HR professionals rank recruitment as their biggest challenge, with SMEs particularly hard-hit by skills shortages, wage expectations, and competition from larger firms or global players offering flexible arrangements.

Post-pandemic shifts have intensified this: candidates demand hybrid working, better benefits, and alignment with values, while immigration rules tighten access to overseas talent in key sectors. A prolonged vacancy can cost thousands in lost output, overtime, or agency fees, yet rushing the process risks poor hires, high turnover, or even discrimination claims if procedures aren’t fair.

The legal landscape adds complexity. With unfair dismissal protections potentially kicking in after just six months (from 2027), getting recruitment right from the start, clear job ads, structured interviews, and compliant offers, is crucial. Many owners try to handle it in-house to save costs, but without expertise, small oversights (like inconsistent questions or inadequate checks) can lead to disputes or tribunal exposure.

Pro tip: Don’t go it alone. Professional HR consulting ensures compliant, effective recruitment that attracts top talent while minimising risks.

2. Underperformance Management: When Good Intentions Meet Legal Minefields

Dealing with underperformance is another perennial headache. An employee who’s consistently missing targets, delivering substandard work, or disrupting the team can drag down morale, productivity, and results. Yet addressing it feels daunting, owners worry about confrontation, potential claims, or simply not knowing the right steps.

UK law requires fair, reasonable processes: informal discussions, performance improvement plans (PIPs), documented evidence, and support (like training or adjustments). Mishandling this, skipping stages, lacking records, or appearing punitive, can turn a capability issue into an unfair dismissal claim. With tribunal statistics showing wrongful termination among common cases, and upcoming changes shortening qualifying periods for protections, the stakes are higher than ever.

Many business owners attempt DIY performance management via generic templates or gut instinct, but without tailored advice, they risk procedural unfairness or discrimination allegations (e.g., if underperformance links to health or protected characteristics). The result? Stressful tribunals, compensation payouts, and reputational damage.

Expert HR support changes this: structured processes, objective documentation, and legal oversight turn tricky conversations into defensible, supportive outcomes that protect your business.

3. Sickness Absence: The Unpredictable Drain on Resources

Sickness absence tops the list for many owners, especially with UK rates hitting record highs, driven by mental health issues, musculoskeletal problems, and long-term conditions. Average days lost per employee neared two full weeks annually, costing billions in direct payments, lost output, and cover arrangements.

The Employment Rights Act 2025 amplifies the pain: from April 2026, statutory sick pay (SSP) becomes payable from day one (no three-day wait) and available to all eligible employees regardless of earnings threshold. This extends coverage to around 1.3 million low-paid workers, increasing costs and compliance demands, particularly for SMEs with lean teams where one prolonged absence disrupts everything.

Managing absence fairly is legally fraught: track records accurately, conduct return-to-work meetings, apply trigger points sensitively, and explore reasonable adjustments for disabilities under the Equality Act 2010. Reactive approaches, ignoring patterns or jumping to dismissal, often lead to discrimination or unfair dismissal claims. DIY policies from online sources rarely account for these nuances or upcoming reforms, leaving owners exposed.

Proactive absence management with expert input reduces levels, supports wellbeing, and keeps you compliant, avoiding the nightmare of escalating disputes.

Why DIY Isn’t the Answer- And What to Do Instead

These three headaches share a common thread: they seem manageable until they aren’t. Attempting to tackle them solo with templates, free advice, or trial-and-error often leads to inconsistencies, oversights, and expensive fallout, especially in a landscape reshaped by new employment rights.

Business owners lose sleep because HR isn’t their core expertise. A single misstep can trigger tribunals averaging £8,500+ in costs, plus untold hours and stress.

The smarter path? Partner with specialists who handle these issues daily. Employment Law Services provides fixed-fee retainers for unlimited advice, policy reviews, representation in claims, and proactive HR support, tailored to your business size and sector. We help with recruitment strategies, performance frameworks, absence policies, and preparation for 2026 changes, giving you peace of mind and compliance confidence.

Don’t let these HR headaches keep you awake. Book a free, no-obligation consultation today to discuss your specific challenges and get personalised, expert guidance. Invest in professional support now, your business (and your sleep) will thank you.