Be deliberate if you want HR success in 2025

Ben Watts, CEO of Watts Next

In an ever-evolving business landscape, setting the stage for HR success has never been more critical. Over the past 18 months as HR consultants at wattsnext we have managed close to 30 resizing projects. To put that into perspective for the 15 years prior we averaged 2-3 per annum. In my opinion it is highly likely most small businesses will require reshaping in 2025 to remain competitive. Below I highlight some people strategies to prepare your organisation for success in the new year.  

 
At wattsnext we are privileged to work with between 80-100 small businesses each year, across all industries. This gives us a great cross-section and an insight into the small business sector in general. 

Organisations are navigating a range of economic pressures that are shaping their HR strategies:

• Economic challenges: Resizing, offshoring, and heightened performance scrutiny are becoming standard practices as businesses adapt to financial strains.
• Workplace dynamics: An increase in global workplace conflicts and a push to return to the office underline the importance of adaptive strategies.
• Technological evolution: The AI gap is growing, distinguishing industry leaders from those who are sitting back and observing. AI is changing industries, but also the functional structures of most businesses and the individual roles within. 

The smartest, forward-thinking operators are laying the groundwork for 2025, recognising that proactive measures can ensure resilience and growth. Below are three strategies you should explore across December & January to remain competitive. 

1. Anonymous Engagement Surveys

Anonymous engagement surveys are the most underutilised tool in small business. An invaluable tool to gauge team sentiment and uncover opportunities for improvement. These surveys not only help identify blind spots but also help organisations predict future trends, and address issues proactively. Metrics you should monitor, and benchmark include:

• Culture and morale
• Manager effectiveness
• Retention and longevity, how long will people stay? 
• Remuneration and recognition

You can benchmark against previous internal results or similar businesses. Effective engagement surveys build trust, enhance morale, boost retention and are the feedback cornerstones of a successful organisation. 

2. Is your business still fit for purpose?

Being agile and adaptive to economic pressure and technological change is essential for long-term success. What has served you well may well need to change in this ultra-competitive modern world. 

Key considerations include:

• Do you need to resize and lower your cost base? 
• Evaluating whether your current roles are working?
• Can you leverage cheaper offshore resources, job share or completely outsource some business functions?  
• Are you utilising AI and how does that impact the shape of your business?
• Are you ignoring poor performance or behaviour?

Just because something or someone has worked well in the past there are no guarantees of future success. I predict complacency and a reluctance to change being the downfall of many small businesses over the next 12 months.  

3. Talent attraction 

The period from late November to the end of January (in Australia) is the prime window to attract talent. Christmas bonuses received; passive job seekers explore their new year options over the Christmas period.  There is less competition as many businesses have shut their offices and are recovering from a challenging year. The astute business owner leverages their brand through job boards, LinkedIn, and social media, targeting the passive job seeker and getting the jump on their competition. A great time to attract talent, but on the flip-side don’t forget you need to retain your key people!

‘Why wait until the first week of February when job adverts peak and the majority fight over the same talent pool?’

The 1^st of December represents the business owner and senior executives New Year’s Eve; an opportunity to reflect, strategise, and gain an edge over your competitors. Everyone is drained this time of year, but the smart operators get a second wind and have one eye on becoming better. By focusing on these areas, you will position your organisation and its shape, to succeed in 2025!

Should you require further information please feel free to contact us:
e: admin@wattsnext.com.au | ph: 1300 092 887 |
w:https://wattsnextgroup.com/