As one of Ireland’s leading HR consultancies for SMEs, GHR Consulting is dedicated to supporting employers in navigating the complexities of managing their teams. Based on data collected from our free employer helpline and client queries, this report identifies the top HR challenges faced by SMEs in 2024.
In this report, we also share key insights and practical advice to help businesses remain compliant and foster productive workplaces.
Overview of key findings
72% of queries received were related to compliance with new statutory regulations, particularly Statutory Sick Pay.
58% of SMEs expressed concerns about managing poor performance and employee underperformance.
46% of employer queries focused on navigating disciplinary processes fairly and effectively.
39% of queries were related to managing annual leave entitlements, especially for part-time and atypical workers.
35% of employers sought clarity on family leave policies, including maternity, paternity, and parental leave.
1. Sick Pay Queries
The introduction of statutory sick pay continued to dominate HR queries in 2024, with 41% of all compliance-related questions focusing on this area alone. Employers often needed support in understanding entitlements, record-keeping requirements, and balancing operational needs with legal obligations.
Key Challenges:
Clarifying statutory sick pay requirements.
Implementing compliant policies for small teams.
Managing recurring or extended absences.
Practical Advice:
Align your sick pay policy with the latest legislation.
Communicate policies clearly to all employees.
Maintain accurate records of absences and consult with HR professionals for complex cases.
2. Poor Performance Management
58% of SMEs reported challenges related to addressing employee underperformance. Employers were particularly concerned about initiating difficult conversations and implementing structured performance improvement processes.
Key Challenges:
Setting clear and measurable performance expectations.
Handling sensitive performance discussions.
Documenting efforts to support employees.
Practical Advice:
Address performance issues promptly and constructively.
Establish clear goals and provide regular feedback.
Use formal Performance Improvement Plans (PIPs ) to document steps and progress.
3. Navigating Disciplinary Processes
Nearly half (46% ) of employer queries revolved around handling misconduct and disciplinary actions. SMEs often struggled to ensure procedural fairness and avoid risks such as unfair dismissal claims.
Key Challenges:
Conducting thorough investigations.
Ensuring procedural fairness.
Documenting actions appropriately.
Practical Advice:
Ensure your disciplinary policy is up-to-date and compliant with current employment law.
Follow a transparent and fair process, giving employees an opportunity to respond.
Consult with HR professionals to minimise risks and uphold best practices.
4. Annual Leave Queries
Managing annual leave entitlements accounted for 39% of employer queries. SMEs faced difficulties with calculating entitlements, managing peak holiday seasons, and handling carryover requests.
Key Challenges:
Calculating entitlements for part-time and atypical workers.
Managing leave requests during busy periods.
Avoiding operational disruptions during peak holiday seasons.
Practical Advice:
Develop a clear and comprehensive annual leave policy.
Encourage employees to plan their leave early in the year.
For complex cases, such as calculating entitlements for irregular work patterns, seek professional guidance.
5. Family Leave Queries
Family leave entitlements made up 35% of queries, with employers seeking clarity on maternity, paternity, and parental leave policies. SMEs often struggled with maintaining business continuity during extended employee absences.
Key Challenges:
Understanding legislative changes to family leave entitlements.
Planning for extended absences while maintaining operations.
Communicating entitlements effectively to employees.
Practical Advice:
Stay informed on updates to family leave legislation.
Collaborate with employees to plan their leave effectively.
Cross-train staff to cover roles during absences and minimise disruptions.
Conclusion and Recommendations
2024 posed several challenges for SMEs, largely driven by evolving regulations and the complexities of people management. By addressing the top HR queries proactively, SMEs can foster a compliant, fair, and productive workplace while meeting their employees’ needs.
Key Recommendations:
Stay informed: Regularly review changes to employment legislation and update your policies accordingly.
Seek expert advice: Partner with HR professionals to address complex issues and reduce risks.
Communicate effectively: Ensure policies and processes are clearly communicated to employees.
GHR Consulting works with over 100 SMEs across Ireland, assisting with their HR and Recruitment Requirements. They offer a practical, contract-free service both in-house or remotely. For personalised support or further guidance, contact the GHR Consulting free helpline on 0818 456 456 or visit www.ghrconsulting.ie
