Strategic Planning for 2026: Purpose, Wellbeing, and Belonging
As we step into 2026, the HR landscape for SMEs is evolving rapidly. Traditional priorities like compliance and recruitment remain essential, but the new agenda is being shaped by three critical pillars: Purpose, Wellbeing, and Belonging. These aren’t just buzzwords, they are strategic imperatives that drive engagement, retention, and performance in today’s workforce.
- Purpose: Aligning Work with Meaning
Employees increasingly seek roles that connect to a bigger picture. For SMEs, this means:
- Clarify organisational purpose: Share your mission and values in onboarding and team meetings.
- Connect roles to impact: Use storytelling in internal comms to show how individual contributions make a difference.
- Embed purpose in culture: Recognise and reward behaviours that reflect company values.
Tip: Create a “Purpose in Action” section in your monthly newsletter highlighting employee contributions to business goals.
- Wellbeing: Beyond Perks to Holistic Support
Wellbeing spans mental, emotional, and financial resilience.
- Mental health support: Train managers to spot early signs of stress and provide access to EAPs.
- Flexible working: Offer hybrid options and clear guidelines to maintain productivity.
- Financial wellbeing: Share resources on budgeting and pensions; consider salary advance schemes for emergencies.
Tip: Run quarterly wellbeing check-ins and pulse surveys to identify emerging needs.
- Belonging: Creating Inclusive Communities
Belonging goes deeper than diversity—it’s about ensuring every employee feels valued.
- Inclusive leadership: Provide unconscious bias training and encourage open dialogue.
- Employee voice: Use anonymous feedback tools and act visibly on suggestions.
- Celebrate differences: Recognise cultural events and create inclusive policies.
Tip: Launch an internal “Belonging Champions” network to drive inclusion initiatives.
Why This Matters for SMEs
By prioritising purpose, wellbeing, and belonging, you can:
- Boost retention and reduce recruitment costs.
- Enhance productivity through engaged teams.
- Strengthen your employer brand in a competitive market.
Your Next Step
Is your HR strategy ready for 2026? If you’re unsure where to start, The HR Team can help you design and implement practical solutions tailored to your business. Let’s make purpose, wellbeing, and belonging the foundation of your success this year.
Your Responsibilities for Right to Work Checks in 2026
Ensuring that all employees have the legal right to work in the UK remains a critical compliance obligation for employers of all sizes. As an SME, it’s essential you stay up to date with your duties and understand the serious consequences of getting it wrong. This month, we are reminding all clients of the key requirements surrounding Right to Work (RTW) checks and what has changed in recent years.
Why Right to Work Checks Matter
All UK employers have a legal duty to prevent illegal working. If you employ someone who does not have valid permission to work in the UK, your organisation may face:
- Civil penalties of up to £45,000 per worker
- Criminal sanctions, where an organisation has “reasonable cause to believe” the individual does not have the right to work
Carrying out proper RTW checks protects your organisation by giving you a statutory excuse against civil penalties.
How Checks Must Be Carried Out
Right to Work checks must be completed in one of the following ways:
- In-person document checks, following the Home Office’s required three-step process
- Using an online, verified third-party RTW service where appropriate
- Using the Home Office online RTW checking service (for individuals whose status can be checked online)
If the Home Office online service confirms an individual’s immigration status, no further documentary evidence is needed.
To ensure full compliance, employers are strongly advised to make all offers of employment conditional upon the provision of satisfactory RTW documentation.
Key Legal Changes Employers Should Be Aware Of –
- Post-Brexit Immigration Rules (Since 1 January 2021)
Freedom of movement between the UK and the EU ended on 1 January 2021, and new immigration laws have been in place since then. EU, EEA and Swiss nationals are now subject to the same immigration system as non-EU nationals unless they hold status under the EU Settlement Scheme.
- Introduction of Sponsorship Requirements
Since 1 January 2021, employers must hold a valid Sponsor Licence to employ all overseas nationals (including EU, EEA and Swiss citizens) via the Skilled Worker route.
- Online RTW Service (Since 29 January 2019)
The Home Office’s online checking service can now be used for many categories of workers. Where this service is available, it can provide employers with a statutory excuse without needing to handle physical documents.
What Employers Should Do Now
- Review your current RTW processes and ensure they follow the Home Office’s required steps.
- Ensure all managers involved in recruitment understand the legal requirements.
- Audit existing records to confirm compliant RTW checks have been carried out and are correctly documented.
- Consider obtaining or updating a Sponsor Licence if you may need to employ overseas talent.
- Always complete checks before employment begins and keep clear records.
Need Support?
If you would like help reviewing your compliance, updating your RTW procedures, or applying for a Sponsor Licence, The HR Team are here to assist. Ensuring your RTW practices are robust not only protects your organisation from fines but also strengthens your overall recruitment process.
Zero-Hours Workers: Big Changes, More Stability Ahead
From 2026, SMEs will start to see major changes to zero- and low-hours working as parts of the Employment Rights Act 2025 are phased in. The reforms aim to curb exploitative use of zero-hours arrangements while preserving flexibility for workers who want it.
Duty to Offer Guaranteed Hours After a 12-Week Reference Period
If someone on a zero- or low-hours arrangement regularly works a predictable pattern, employers will be under a duty to offer a guaranteed-hours contract that reflects the hours actually worked after each reference period—which the government indicates is expected to be 12 weeks (the precise period will be confirmed in regulations). Workers can reject the offer and remain on zero-hours if they prefer.
What this means for SMEs:
Start capturing hours in rolling 12-week snapshots so you can evidence patterns and make timely offers where the duty is triggered.
Reasonable Notice of Shifts & Pay for Short-Notice Cancellations
Employers will need to give reasonable notice of shifts. If a shift is cancelled, curtailed or moved at short notice, compensation will be payable (the specific notice thresholds and payment levels will be set by secondary legislation). These measures are designed to reduce last-minute rostering and the income volatility it creates.
What this means for SMEs:
Tighten rota lead times, document your notice processes, and plan for a compensation rule once the regulations fix the thresholds.
Flexibility Remains—By Choice
Zero-hours contracts are not being banned. Individuals who value flexibility can choose to stay on zero-hours, but where a regular pattern emerges, you will have to address predictability through the guaranteed-hours duty.
Timing & Next Steps
Reforms under the 2025 Act are being phased in across 2026–27, with the detailed mechanics (e.g., exact reference period length, what counts as “reasonable notice,” and compensation levels) to be set in secondary legislation and guidance. Plan now but expect to fine-tune when the regulations are published.
Practical to-do list for SMEs
- Audit zero-/low-hours roles (including agency arrangements) to see where regular patterns already exist.
- Record hours over rolling 12 weeks to spot when you’ll need to make guaranteed-hours offers.
- Update contracts and scheduling policies to reflect reasonable-notice expectations and cancellation pay (once the thresholds are confirmed).
- Train managers and rota planners on the new duties and record-keeping requirements.
For expert advice and a thorough review of your zero hours contracts, contact The HR Team today.
