Study reveals nearly 80 per cent of UK employers struggle with long-term planning
Political uncertainty and regulatory ambiguity are hindering businesses’ ability to engage in long-term planning, according to a new study. Close to 80% of employers reported that they are unable to look beyond a year ahead, based on a survey of nearly 700 organizations by law firm Lewis Silkin, reports BritPanorama.
The survey highlights that economic pressures, along with ongoing political and regulatory changes, are narrowing the planning horizon for many businesses. Lucy Lewis, partner and chair at Lewis Silkin, emphasized the impact of these challenges: “Economic pressures, and political and regulatory change narrow the planning window even further… reactive tactics which mean that transformation programmes or workforce redesign get sidelined.”
Additionally, one in four UK organizations identified the need to prepare for and adhere to the Employment Rights Bill as a primary challenge. The sweeping changes to workers’ protections, which received final legislative approval in December, are expected to impose significant costs on businesses.
The contentious Bill faced extensive debates in the House of Lords, particularly regarding ‘day one’ entitlements. As organizations adapt to the new legislation, Tarun Tawakley, partner at Lewis Silkin, noted that over the next 12–24 months, “expect cautious hiring, legally anchored policy-setting and a premium on disciplined execution.”
Businesses are also coping with rising employment costs, including increased employer national insurance contributions alongside a 4.1% rise in the national living wage. This combination is generating considerable recruitment challenges, particularly for smaller firms struggling with the additional taxation and administrative burdens of compliance.
The survey indicates that many of these businesses anticipate investing more heavily in technology than in personnel over the coming year, raising concerns about cultural implications. Nearly half (49 per cent) of organizations expect to encounter cultural resistance, stemming from fears of job losses and mistrust of artificial intelligence outputs that could obstruct new technology adoption.
Lisa Farthing, head of worksphere and HR consultancy at Lewis Silkin, warned that the challenge of upskilling staff is intensifying as employment law rights expand. She remarked that employees’ increasing awareness of these rights underscores the necessity for effective training, coaching, and people management.
Editorial Note: The findings of this study highlight a significant gap in long-term strategic planning among UK employers amidst a landscape fraught with political and regulatory uncertainties. As companies navigate these challenges, the emphasis on technology over workforce investment could have profound implications for workplace dynamics and employee relations in the upcoming years.
