Performance management has become the defining HR priority of the year reflecting growing pressure on organisations to improve productivity, strengthen accountability and support managers as they navigate hybrid working and cultural change.
According to 2026’s survey from employment law firm Freeths, 48% of HR leaders saw performance management as their chief concern compared with 16% in 2025.
The next major concern is the Employment Rights Act 2025. While awareness of the legislation is widespread, understanding remains shallow. Four in five respondents said they were somewhat aware of the reforms, but only 4% described themselves as experts. The majority of respondents thought the Act was a retrograde step in terms of economic impact: 61% believe the Act will make the UK less attractive for investment, 68% disagree that it will have a positive impact, and just 12% expect any improvement in job quality or productivity.
As seen in previous research, businesses were particularly concerned about reforms to unfair dismissal and flexible working, with many now reviewing contracts, staff handbooks and internal management processes. More than a quarter of employers said they planned to change their information and collective procedures in response to the strengthening of trade union powers.
The survey also pointed to a significant compliance gap in some of the most sensitive areas of workplace law. Despite tougher enforcement and higher penalties over right-to-work checks, 36%...
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