A Labour of Love: Employment Hero’s New Research Shows the Sacrifices Behind SME Leadership and What HR Must Do in 2026

Employment Hero, the global provider of HR, hiring and payroll software, has launched a new Valentine’s Day campaign to spotlight the people powering the UK economy. The message is deliberately human. Behind every SME payroll run and hiring decision sits a leader absorbing risk, pressure and often significant personal sacrifice.

New research commissioned by Employment Hero, surveying 1,047 UK business leaders, suggests running a business is quite literally a labour of love. Almost all SME leaders surveyed (94 percent) say they have made sacrifices because of their business. Two in three (67 percent) report sacrificing time for themselves, while more than half (55 percent) say they have sacrificed time with their partner. Yet despite the toll, 85 percent say that if they could turn back the clock, they would do it all over again.

For HR leaders, the findings land at an important moment. They reveal not just the resilience of small business owners, but the sustainability risks hiding behind that resilience and the operational role HR can play in reducing dependence on constant personal sacrifice.

The economic backdrop SMEs have been navigating

The research follows a difficult period for SMEs, shaped by the after-effects of measures introduced in the 2024 Autumn Budget and the pressure that ran throughout 2025. Higher National Insurance Contributions and employment law changes weighed on confidence and complicated workforce planning, particularly for businesses operating on tight margins.

National labour market indicators captured some of that strain. Office for National Statistics figures show payrolled employees fell by 184,000 year-on-year by December 2025, while unemployment rose to 5.1 percent, the highest level since 2021.

However, Employment Hero argues the SME picture is more nuanced. Its SME labour market analysis, based on real-time employment data from 117,000 employee records, shows SME hiring increased by 2.5 percent year-on-year by the end of 2025. The data also highlights how policy announcements and implementation moments affected confidence. Month-on-month employment growth dropped to 0.8 percent in December 2024 after NIC increases were announced, and to -1.1 percent in April 2025 when changes came into effect. Despite that volatility, SMEs continued to hire and create opportunities.

The divergence matters. It suggests SMEs have remained more willing to take calculated people risks than larger employers, even as the wider market tightened.

Resilience has a personal price tag

Employment Hero’s research makes the cost of that resilience explicit. Leaders most commonly described running a business as delivering purpose, fulfilment and pride, but the vast majority also reported material sacrifices in time, relationships and personal wellbeing.

Kevin Fitzgerald, UK Managing Director at Employment Hero, frames the finding as a story of commitment rather than complaint. “This Valentine’s Day, we wanted to shine a light on the real love story driving Britain’s economy, the unwavering commitment of small business owners to their companies and their teams,” he says. “These are people who’ve sacrificed time with loved ones, personal wellbeing and financial security to build something meaningful.”

He also points to the contradiction at the heart of the data. “They’ve weathered one of the toughest years in recent memory, facing rising costs, policy uncertainty and a contracting national labour market. Yet our data shows they haven’t given up. While the broader economy has seen employment fall, SMEs have continued to take risks and invest in people.”

For HR leaders, the key insight is that resilience is not always sustainable. In smaller organisations, the founder or managing director is often a single point of failure. When a leader is depleted, decision quality drops, conflict increases and retention risk rises across the business.

What this means for HR in 2026

The statistic that 85 percent would do it all again is powerful because it signals intrinsic motivation. SME leaders are not simply persevering out of necessity. Many are driven by identity, pride and purpose. But purpose does not protect against burnout, and personal sacrifice is not a scalable operating model.

In 2026, the HR opportunity inside SMEs is to professionalise the people infrastructure without importing big-company bureaucracy. That starts with reducing operational drag. Streamlined HR workflows, clearer workforce planning and stronger manager capability can remove the friction that forces leaders into constant firefighting.

It also means treating leadership capacity as a business asset. SMEs rarely have deep bench strength, so supporting leaders through peer networks, coaching and structured delegation is not a perk. It is a continuity strategy.

The data also reinforces the importance of transparent communication and role clarity. In smaller organisations, ambiguity quickly turns into overload. HR teams can add disproportionate value by tightening role expectations, setting workable performance rhythms and helping leaders create boundaries that protect sustainability.

Community and visibility still matter

As part of the campaign, Employment Hero and its mascot Big Ears will be handing out letters of appreciation at the England v Scotland match on 14 February, encouraging fans to support their favourite small businesses. The gesture is light-hearted, but the intent is serious. SMEs do not just employ people. They anchor communities, create opportunity and often absorb economic shocks first.

The research is a reminder that the UK economy runs not only on productivity, but on personal commitment.

A labour of love still needs protection

SME leaders have continued hiring in the face of volatility, even when national indicators have softened. That speaks to optimism and grit, but also to how much pressure is being carried privately behind the scenes.

For HR leaders supporting SMEs, or working within them, the priority for 2026 is to ensure this labour of love does not become a long-term liability. The strongest small businesses will be those that build systems and support structures that protect their leaders, not just their margins.

Resilience will always be part of entrepreneurship. But sustainable growth depends on something quieter and harder: the discipline to design work so success is not powered by sacrifice alone.

HRD Connect Curators of the New Business Landscape. HRD Connect produces industry-recognized content for senior HR leaders. Through articles, case studies, Q&As, podcasts, events, and more, we offer truly progressive and cutting-edge insights designed to help people leaders address core HR challenges and add greater value to their business.

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