HR transformation can’t wait: Building a business case for investment
Workplaces are changing faster than ever and HR must evolve to keep pace.
New legislation, including day-one rights to unfair dismissal and statutory sick pay (SSP) from day one under the Employment Rights Bill, coincides with rising burnout and absence rates hitting their highest in a decade. Together, these trends increase organisational costs, risks and complexity.
Traditional HR models, focused on routine people management, no longer fit today’s landscape. Many organisations rely too heavily on HR teams for operational tasks, pulling specialists away from strategic work that drives transformation. Empowering managers to self-serve people matters and transforming HR processes is essential.
For organisations to stay ahead and be ready for what’s next, they need to act now.
The barriers to change and innovation
Budget pressures and burnout
There are significant barriers to HR transformation, not least because of the budgetary pressures organisations have faced over the last year, forcing HR to do more with less.
Burnout is also rife, so it’s no surprise that 65% of HR professionals are considering changing jobs within the next year. This threatens retention and is a clear warning sign that people leaders are under strain.
Overcoming this budgetary and burnout barrier requires a clear and robust business case that demonstrates the ROI of investment in HR transformation.
Technology should be an enabler, not a drain
The same applies for investment in technology. With budgets under increasing pressure, making the wrong investment is a real risk. But more than that, many organisations are still reliant on spreadsheets and basic ticketing systems to handle sensitive employee relations (ER) data.
New research reveals that over 70% of large enterprise organisations are using Excel spreadsheets. These tools are simply not fit for handling confidential information, lacking robust security measures. Outdated tools like this also limit insight and analytical capabilities that inform decision-making.
This leaves organisations vulnerable to data breaches or mishandling confidential ER cases, which can quickly escalate into serious issues, including employment tribunal claims which can result in significant financial losses.
When leadership skills don’t keep pace
Even when budgets are allocated and technology is updated, transformation will stall if managers lack the capability to lead effectively.
Research shows managers are often promoted for technical expertise rather than leadership skills, meaning they are not equipped to handle critical responsibilities and complex ER matters.
These capability gaps exacerbate existing pressures, as managers rely heavily on HR expertise, increasing HR workload and burnout. This highlights the need for targeted development programmes and structured support where managers are empowered to reduce risk and improve employee experiences.
Despite considerable risks, many organisations are still not prioritising investment in modernising their employee relations processes or empowering managers to reduce the burden on HR. Closing this gap is vital for any organisation seeking greater security and confidence in the future.
HR transformation can’t wait
With all of the budgetary, legislative and burnout pressures, there has never been a more important time to invest in this kind of HR transformation, and here’s why:
Day one rights to unfair dismissal: This will inevitably create more work, more risk and more cost. Our own research on the impact predicts a 230% increase in probation-related tasks alone, requiring 13% more employee relations resource.
Rise in AI-generated grievances: Organisations are already seeing more complexity in grievances being raised using AI tools. This is likely to increase the pressure on HR teams as employees become more adept at utilising tools like ChatGPT to support workplace grievances.
The absence epidemic: Sir Charlie Mayfield’s Keep Britain Working Review estimates the cost of absence in the UK is £150 billion a year, and this is expected to rise by 2030. Employees now average 9.4 sick days per year, and HR teams are experiencing the highest absenteeism rates across sectors. With SSP changes expected in April 2026, proactive absence management strategies are essential.
Inaction magnifies the risks, increasing HR burnout, leaving managers unprepared and exposing the organisation to costly disputes and compliance risks.
The business case for HR transformation
The right HR transformation gives managers the tools, insights and confidence to lead their teams effectively. Transforming employee relations processes is a key part of this, helping to address issues before they escalate.
Investing in empower®, a purpose-built system backed by decades of HR expertise, delivers measurable ROI through reduced errors, improved compliance and time saved for proactive people strategy. Practical benefits include:
- Bridging manager capability gaps: Self-service tools and guided processes enable managers to resolve issues confidently and proactively
- Freeing HR capacity: Specialists can focus on strategic priorities while routine issues are efficiently managed
- Enhancing employee experiences: Insightful analytics enable early intervention of employee relations issues, improving wellbeing and engagement
- Centralising secure documentation: A single source of truth with full audit trails reduces errors and ensures compliance
- Proactive people strategies: Analytics identify burnout and absence risks through emerging trends, allowing timely, data-driven actions.
Embracing this operating model provides a solid foundation for greater stability and confidence, ensuring that organisations are well-prepared to meet whatever challenges the future may hold.
Empowering our managers with guided journeys has been a huge win for us. It’s really boosted managers leadership, helped us cut absence rates by an incredible 10% in just one year, and freed up our HRBPs and district managers to focus on strategic priorities – Irine Katsiashvili, Senior HR Business Partner, Starbucks UK
Invest in HR technology wisely
Investing in new HR software alone doesn’t guarantee transformation. The right solution combines intuitive, scalable technology with HR experts who act as an extension of your team, advising managers and freeing up internal HR capacity. When looking for a solution, key considerations include:
- Simplicity and integration: Avoid overly complex platforms and ensure seamless alignment with existing policies, increasing productivity
- Data-driven insights: Leverage actionable analytics to identify the areas with the greatest impact, such as high-risk teams, recurring workplace issues, or early signs of burnout, so interventions can be targeted effectively
- Expert partnership: Work with specialists who understand your culture, challenges and long-term goals, and who collaborate closely with your team to deliver practical support that delivers a positive return on investment.
Organisations leveraging this approach have reported measurable ROI including bringing thousands of hours back to the frontline, reducing absence rates by up to 10% and cutting employment tribunal claims by up to 50%.
This shifts HR from a reactive function into a strategic business driver. Explore employee relations transformation case studies to find out how.
Inaction is a business risk
Paralysis under pressure doesn’t reduce risk: it leaves HR teams overburdened, managers unprepared and the business exposed to costly disputes and compliance failures. Taking decisive, structured action now safeguards your organisation, strengthens leadership capability, and ensures HR is equipped to turn challenges into opportunities for growth. Here’s how to get started:
- Audit current practices: Review potential gaps in policies and procedures to reduce risk
- Review probation frameworks: Evaluate if you have clear, fair performance management processes
- Train managers: Equip line managers with the skills to handle workplace issues confidently, reducing HR escalations and building stronger teams
- Strengthen early resolution: Implement ER case management processes that resolve disputes before they escalate, saving time, costs and protecting employee morale
- Partner strategically: Work with experts to simplify complexity, empower your people and deliver long-term value, turning HR from a reactive function into a strategic business driver.
This helps to reduce the risk of costly penalties and safeguard your organisation, while building a stronger HR foundation for the future.
Presenting the business case
To secure buy-in, frame the HR transformation investment in a way that resonates with key decision-makers, focusing on return on investment, risk mitigation and alignment with organisational goals.
Highlight tangible benefits such as cost savings from reduced absence rates, tribunal claims and ER case escalations. These efficiency gains from streamlined processes are a strategic advantage, freeing up HR capacity for transformational initiatives.
A well-structured case demonstrating measurable impact increases the likelihood of leadership approval and accelerates implementation.
Ready to make your business case? Speak to our experts today who can work with you to calculate your potential return on investment and help you build the right business case for HR investment.