Building a Winning People Plan: Key Elements for Success

As we move into a new year, organisations must prepare for evolving challenges and opportunities in the workplace. A robust people plan is crucial for navigating new legislation, economic shifts, and workforce trends. Employers who prioritise strategic workforce planning can foster employee satisfaction, maintain compliance, and build a resilient, future-ready organisation.

This blog will outline key areas to focus on in your people plan for the year ahead, including new legislation, workforce trends, and practical tips to ensure success. Every organisation has unique objectives and challenges, so priorities will differ. Our overview of next year’s top HR trends helps you focus on those that align with your company culture and goals.

Why a People Plan is Essential for Success

A people strategy aligns your human resources strategy with overall business objectives, taking a holistic view of organisational needs and outlining how to support wider goals through your people. It highlights a commitment to workforce development and wellbeing while focusing on how the team will deliver organisational success.

Creating a people plan provides clear direction for leaders by defining accountability within key areas. This clarity streamlines decision-making, enabling efficient progress towards achieving business objectives.

A well-thought-out plan also allows organisations to anticipate and manage workforce challenges, enhance employee satisfaction, and build a competitive edge. As legislation changes and trends like AI, hybrid working, and diversity shape the workplace, proactive planning ensures compliance and resilience. Employers who invest in their people are better equipped to drive business growth and innovation.

New Legislation to Consider in Your People Plan

1. Employment Rights Bill

The Employment Rights Bill is continuing its passage through Parliament, bringing with it a series of reforms intended to strengthen and modernise workplace protections. Its scope covers several key areas, including flexible working, family friendly rights, statutory sick pay and dismissal rules. While the original proposals were wide ranging, the Bill has been revised and delayed in the House of Lords, raising concerns that it may run out of parliamentary time. As a result, there is still uncertainty about how much of the package will ultimately become law.

Even so, a number of core measures are still expected to move forward, with phased implementation planned from 2026 onwards. With this in mind, keeping a close watch on developments will help ensure you remain prepared for any changes that do come into force.

• Possible Action Points for your people plan:

The Government has confirmed its support for a new Youth Guarantee scheme, backed by an £820 million investment. This will ensure that any young person who has been out of work or education for 18 months is offered a paid work placement.

Small and medium sized employers will also be able to access fully funded apprenticeships for staff aged under 25, providing a cost free route to attract and develop emerging talent.

What this means for your people plan in 2026

These changes present a strong opportunity to strengthen early careers strategies and future talent pipelines. For 2026, consider how you can:

• build structured entry routes for young people through work placements and apprenticeships
• refresh your workforce planning to make use of fully funded training for under 25s
• develop or enhance mentoring and development frameworks to support new starters
• use these schemes to widen participation, improve social mobility and diversify your talent pool

Positioning your organisation to take advantage of these incentives now will help you increase capacity, manage skills shortages and future proof your workforce for 2026 and beyond.

3. National Minimum Wage

The national minimum wage for workers aged twenty one and over will rise by 4.1 per cent, moving from twelve pounds twenty one to twelve pounds seventy one in April 2025. For full time staff, this represents an increase of roughly nine hundred pounds a year. Rates for eighteen to twenty year olds will also rise to ten pounds eighty five, giving full time employees in this group around fifteen hundred pounds more annually.

While this uplift is positive for employees, it adds further cost pressure for many employers already managing tight budgets. As you shape your people plan for 2026, it will be important to factor in the impact of higher wage costs, review workforce structures and assess where efficiencies or wider changes may be needed. If you are in a position to bring pay adjustments forward, it can support engagement and retention, but for many the focus will be on planning carefully for April and beyond.

Key Workforce Trends to Include in Your People Plan

1. Upskilling and Reskilling

The pace of technological change requires employers to invest in upskilling and reskilling their workforce. If you are unable to hire new employees in the new year, upskilling staff can be a good solution. Employees value opportunities for growth, and organisations benefit from a more adaptable team. As part of your people plan, you can:

• Identify skill gaps in your workforce.
• Provide training programmes in critical areas such as leadership, digital transformation, and emerging technologies.
• Encourage a culture of continuous learning through mentoring and online platforms.

2. Mental Health Absence Management in a People Plan

Managing mental health absences effectively is crucial for fostering a supportive and productive workplace. Burnout was predicted to be one of the biggest issues in 2026, therefore putting support in now will help you avoid this in your business.  By prioritising mental health in your people plan, you can create an environment where employees feel valued and empowered to seek help when needed.

• Develop a Clear Mental Health Policy: Outline procedures for reporting mental health absences and provide clear guidance on available support.
• Train Managers in Mental Health Awareness: Equip leaders with the skills to recognise signs of mental health issues and respond appropriately.
• Offer Employee Assistance Programmes (EAPs): Provide access to counselling services, mental health resources, and confidential support for employees.
• Promote a Positive Work Environment: Encourage open conversations about mental health and reduce stigma through awareness campaigns.
• Flexible Working Options: Introduce flexibility in work arrangements to support employees dealing with mental health challenges.
• Regular Check-Ins: Implement regular one-to-one meetings to discuss employee wellbeing and identify any concerns early.
• Review and Adjust Workloads: Monitor workloads to prevent burnout and excessive stress, which can contribute to mental health issues.
• Access to Mental Health Training for Staff: Offer training sessions to help all employees understand mental health and build resilience.
• Measure and Monitor: Track absence data related to mental health and use insights to adapt strategies and improve support.

Including these actions in your people plan will help your organisation address mental health absence effectively, demonstrating a commitment to employee wellbeing and organisational success.

3. Leveraging AI in HR

Artificial Intelligence (AI) is revolutionising HR processes, from recruitment to performance management.

• Automate routine tasks such as CV screening and interview scheduling.
• Use AI-powered tools for employee engagement surveys and performance analysis.
• Ensure transparency in AI systems to maintain trust among employees.

5. Strengthening Company Culture

A strong company culture is essential for attracting and retaining top talent. Employees are increasingly prioritising workplaces where values, communication, and inclusivity align. You can include this in your people plan by:

• Defining and communicating your company values clearly.
• Invest in leadership training to promote consistent management practices.
• Encourage feedback and employee participation in shaping workplace culture.

6. Diversity and Inclusion

Diversity, Equity, and Inclusion (DEI) are more than buzzwords—they are essential components of a thriving workplace.

• Develop clear DEI policies and goals.
• Offer unconscious bias training to employees and leaders.
• Monitor diversity metrics and share progress transparently.

7. Adapting to a Distributed Workforce

The shift to hybrid and remote working continues to redefine traditional workplaces.

• Equip your teams with the tools and technology to collaborate effectively.
• Focus on outcomes and productivity rather than micromanaging schedules.
• Prioritise employee wellbeing and regular communication to maintain engagement.

8. Skills-Based Hiring

Skills-based hiring prioritises a candidate’s skills over formal qualifications. This approach widens your talent pool and fosters diversity.

• Reframe job descriptions to focus on skills required for success.
• Use skills assessments during the recruitment process.
• Offer training for candidates who may lack specific qualifications but show potential.

Tips for Creating a Successful People Plan

1. Assess Your Current State: Start by evaluating your workforce’s skills, engagement levels, and wellbeing. Use employee surveys to gather honest feedback.
2. Define Clear Objectives: Align your people plan with your business goals, focusing on key areas like retention, compliance, and growth.
3. Engage Leaders and Teams: Involve managers and employees when developing and rolling out your plan to encourage buy-in and accountability.
4. Prioritise Flexibility: The workplace is evolving, so your plan must adapt to changes in legislation, technology, and employee expectations.
5. Measure Success: Set measurable KPIs to track progress, such as employee satisfaction scores, retention rates, and metrics.

How The HR Booth Can Help

At The HR Booth, we specialise in helping organisations create and implement effective people plans. From navigating new legislation to improving company culture, we offer tailored HR solutions that align with your business needs. Our team can support you with:

• Policy updates and compliance with new legislation.
• Developing strategies for upskilling, reskilling, and managing workforce trends.
• Creating practical solutions for  hybrid working, and diversity initiatives.

Whether you’re a small business or a growing enterprise, we provide expert guidance to ensure your people plan drives success.

Take Action Today

Don’t wait to build your people plan for the new year. By addressing legislation, workforce trends, and employee needs, you can set your organisation up for a successful and productive year ahead. Contact The HR Booth today to learn how we can help you create a tailored people plan that delivers real results.