As we approach 2026, businesses across the country are contending with an economic climate that is feeling increasingly constrained. The ongoing impact of the employers’ National Insurance increases which took effect in April, combined with the further pay rises announced in the latest Budget for implementation next spring, is applying additional financial pressure across virtually every sector.
Some large employers have already warned of significant extra labour costs, but for SMEs, who make up the vast majority of UK businesses, the strain is even more acute.
It is little surprise that the media has been reporting a marked slowdown or outright freeze in recruitment, with the ONS stating that vacancies are 12% down for August to October, compared to the same period last year.
It seems many organisations are choosing to “sit tight”, deferring hiring decisions, delaying expansions, and pausing investment in new roles. Even more concerning are the increasing numbers of business closures being announced, particularly in the hospitality industry, where rising wage costs, energy prices, and reduced consumer spending have created a perfect storm.
Although the Government continues to promote apprenticeships and invest in skills initiatives, these measures alone may not be enough to break the current economic deadlock. When organisations are fearful of committing to new spend, their suppliers, partners, and collaborators naturally experience knock-on effects. A sluggish hiring market becomes a sluggish trading environment; and the cycle continues.
Periods of organisational stagnation are not invisible to employees. When teams see recruitment frozen, budgets tightened, and development paused, speculation naturally grows. Morale can deteriorate quickly, productivity can slip, and high performers may begin to question their future with the organisation.
This makes it especially important for employers to demonstrate momentum, intent, and investment, even when trading conditions are challenging. One of the most powerful mechanisms for doing so is structured development, particularly leadership and management training. Not only does it support the performance and capability of the organisation; it provides reassurance to employees that the business remains committed to growth and to their long-term careers.
In a climate where every percentage point of productivity matters, organisations simply cannot afford the operational drag caused by managers who lack the confidence or skillset to drive team performance.
We often comment on how issues caused by undertrained managers, such as poor handling of difficult conversations and ineffective performance management will cause unnecessary distractions and harm productivity.
Leadership Training should be viewed as a strategic investment that is implemented continuously. It delivers three critical benefits for organisations navigating the current economic uncertainty:
- It signals commitment and stability.
Employees who see investment in training understand that the organisation is preparing for the future rather than retreating from it. This increases confidence, reduces anxiety, and boosts discretionary effort. - It strengthens capability exactly when it is most needed.
Challenging trading conditions demand exceptional leadership. Effective managers know how to address underperformance, maintain accountability, resolve conflict, and keep teams focused; skills that are rarely innate and must be developed through training. - It positions the business to accelerate when the market improves.
Organisations that invest in upskilling now will be the first to seize opportunities as conditions ease. Having managers and teams “primed and ready” ensures you can scale, recruit, or diversify faster than competitors who simply remain in a “holding pattern”.
If you have not yet scheduled leadership or management training for your managers, now is the time to act. Many of our most forward-thinking clients have already booked places on our training programmes commencing in January, and we are prepared to release additional places should demand require it.
By making this commitment before Christmas, you can ensure that your teams enter the New Year feeling valued, motivated, and optimistic; confident that their employer is investing not only in their development but in the future success of the organisation.
Now is the moment to act. Equip your managers with the skills to lead effectively, support productivity, and help pull your organisation out of the current economic stall. When the upturn comes, as it inevitably will, your business will be ready to move first.
Contact HR Champions today to reserve your training places for 2026. Call us on 01452 331331, or complete the contact form.
