Charities across the UK are facing significant HR challenges in 2025. From extensive under-investment in social health care to an exodus of care workers leaving the industry, charity leaders need proactive strategies to stay ahead.
At the HR Dept Clapham, Highbury & Islington, we work with many charities and understand the unique challenges they face. Now more than ever, having the right HR support is essential to protecting your organisation and your people. Based on feedback we receive daily from our local charity clients, here are some of the risks and opportunities keeping charity leaders awake at night.
Recruitment & Retention
Risk: Social care turnover is at a massive 34.4%, with 105,000 vacancies at any given time. High reliance on zero-hours contracts makes roles less attractive.
Fact: Replacing a single care worker can cost over £30,000.
Solution: Offer career development, flexible working, and regular stay interviews to boost retention.
Financial Pressures
Risk: Rising wage costs and housing challenges put immense pressure on charity budgets. In London, many key workers can’t even afford basic housing.
Fact: Many local charities warn of potential collapse if wage increases outpace funding, which is a reality.
Solution: Introduce financial well-being programmes, including salary advances and local business partnerships for discounts.
Mental Health & Wellbeing
Risk: Burnout and stress levels are rising, with mental health-related tribunal claims up 25%. This has a huge impact on the clients and community we are here to serve.
Fact: Poor mental health costs UK employers up to £56 billion per year.
Solution: Implement mental health strategies like EAPs, mental health champions, and manager training.
Compliance & Legal Risk
Risk: Significant employment law changes are coming on flexible working, holiday pay, and redundancy which is likely to mean outdated policies, which risk non-compliance.
Fact: Employment tribunal claims are at a 5-year high, with unfair dismissal claims payouts averaging £13,000 and the costs to deal with a tribunal being circa £30,000.
Solution: Regularly update HR policies and train managers on new regulations.
Skills Gap:
Risk: As roles evolve, 50% of staff will need reskilling by 2025.
A Message from Deven Pillay, Chief Executive of Community Connex
“Supporting our dedicated staff is crucial to sustaining quality care in the community. At Community Connex, we’ve always been committed to working through these challenges to protect our clients. It’s never been more difficult though and we want to help charities overcome these challenges. This webinar offers practical insights to protect your organisation and support your people.”
We are proud to be in partnership with Community Connex, a leading health and social care charity in London, to host a practical webinar to help charity leaders navigate these issues by sharing our journey together to face these challenges head-on.
JOIN OUR WEBINAR TO LEARN MORE
Our webinar will give you practical advice to manage risks and seize opportunities.
Date: Thursday 17th April
⏰ Time: 10am
Register here
To find out more about the webinar, see this preview from David Hudson https://youtu.be/eEkElTd4bgI
Don’t miss out—secure your spot today!
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