The Employment Rights Act is a Golden Opportunity for HR

The Employment Rights Act is a good thing for both workers and businesses. But bringing new workers’ rights to fruition is a herculean task for HR teams. It requires an extensive review and update of HR policies, employment contracts and probation processes at a time when people teams are already feeling stretched.

Much of the conversation around the new legislation has centred on this. However, there’s another consequence of the Act that’s being overlooked: it’s created a golden opportunity for HR professionals to re-establish their power and authority within organisations. 

During the COVID-19 crisis, HR became even more crucial to companies. As many businesses were forced to go remote, HR professionals had the essential task of introducing remote work and wellbeing policies. Such initiatives were pivotal for keeping staff happy, engaged and performing at their best through these trying times. Leaders recognised the importance of this work and consequently gave HR teams the support they needed to introduce initiatives and maximise their impact. 

However, these People initiatives have fallen out of favour in recent years. Numerous remote working policies have been revoked. Meanwhile, attacks on Equality, Diversity and Inclusion (EDI) initiatives across the pond led over a quarter of UK businesses to roll back or abandon their own diversity and sustainability initiatives. Last year, over a third of UK businesses cut back on workplace benefits such as healthcare plans and bonus schemes. 

HR’s perceived value within some organisations has dwindled as a result. I’ve seen this firsthand. Fellow HR professionals have also told me they feel HR has been relegated to an administrative function within their organisations. 

It’s making it harder for teams to carry out their work effectively, which has concerning consequences for businesses. We all know that happy, supported employees are more productive, engaged, and stay in roles longer. HR teams cannot help staff stay this way if they’re overlooked and under-resourced. 

The Employment Rights Act is creating an opportunity to turn this tide and reinstate HR’s influence within organisations. Bosses are relying heavily on HR teams’ expertise to ensure compliance with new legislation, and senior HR professionals are spending more time with leadership as they update them on their progress. 

With bosses’ eyes back on HR, we now have an opportunity to further showcase our value, advocate for more resources, and cement our status as strategic leaders within organisations – retaining it even after the buzz around the Employment Rights Act dies down. So how can HR professionals do this?

Firstly, share an Employment Rights Act plan with leaders. This should cover how and when you’re updating your HR infrastructure in response to the legislative changes as they come into force over the next few years. Many HR professionals are tracking this internally, but it won’t reach leadership’s eyes. It should. It’s a physical reminder to leaders that HR is a strategic function that plans proactively, rather than solely an administrative one. It also educates leaders on the scope, complexity and importance of what you’re navigating. This can help shift the perception of HR and unlock the resources we need to maximise our impact. 

Second, lead with the data in meetings with your seniors. Data drives decision-making in the C-suite, so wield it to demonstrate the value of your Act-related actions and wider HR initiatives. These insights should go deeper than the project or policy’s immediate impact. For example, don’t just show how a new holiday policy has improved employee wellbeing; explain how it’s improved productivity, performance, employee retention, and crucially, what this means for the business’s bottom line. That’s what leaders really care about: the return on investment. Speaking leaders’ language and framing your work within the commercial context of the business will make the value of HR more tangible to leaders, which will, in turn, help shift how the function is perceived and resourced. 

Finally, use tech to take over time-sucking admin. For example, documenting sick leave, tracking annual leave, and building reports. This way, teams are freed up to focus on the high-value strategy work, which leaders measure HR’s value against. 

HR professionals have an opportunity to return HR to its former glory. Those who seize the moment the Employment Rights Act has created and use data, tech, and proactive planning to remind leaders of HR’s value and strategic approach will help move the dial. They’ll be instrumental in demonstrating the value of HR, getting leadership buy-in for strategic initiatives and unlocking the resources needed to maximise impact.