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Increased costs of running a business, including staff costs and utility bills, are the biggest challenge facing employers in the next 12 months, according to 45% of HR decision makers.
New research from group risk industry body Grid found that 37% of employers cite the general issues of running a business, such as maintaining profitability and proposition development, as the next biggest concern.
Keeping up with new legislation and employment law was cited by 34%. Recruiting and attracting talent (31%) and retaining staff (26%) were also key concerns.
One fifth (20%) of employers said that they are still struggling with the increased employer national insurance contributions that were introduced in 2025, and 18% said that a key challenge they face is the changes to statutory sick pay (SSP) that are due to come into effect from April 2026.
Katharine Moxham, spokesperson for Grid, said: “At the heart of many of the challenges that lie ahead for employers is the responsibility they feel towards their people, from ensuring compliance with employment legislation to managing the increased costs associated with supporting and protecting staff.
“Organisations must remain cognisant of the full cost of employment, extending beyond salaries to include the broader investment required to support their workforce. In addition, that cost must deliver value for money, ultimately in profitability for the company via a supported workforce that’s present, engaged and productive.”
