Preparing for 2026: Your Hiring and HR checklist for the year ahead

January always brings a mix of emotions for employers. Some people come back feeling energised and ready for a fresh start. Others ease in more slowly after the Christmas break.  

Many business leaders return to full inboxes, postponed decisions and the pressure of wanting to get the year off to a strong start. For SMEs, this pressure often feels heavier because teams are smaller and everyone wears multiple hats. 

Rather than rushing straight back into the day to day, January is the ideal time to pause, reflect and put the foundations in place for the year ahead. A good start in January often prevents rushed decisions in April, bottlenecks in summer and recruitment challenges in September. 

This blog explores what SMEs should focus on in the first month of the year, how to prepare for the upcoming employment law and NMW changes and how to build a hiring plan that supports your business throughout 2026. 

Start by looking back before you look forward 

Before setting goals for the new year, it is helpful to look honestly at what happened in 2025.  

Which parts of your HR and recruitment processes went well and where did things feel more challenging? 

A few good questions to ask include: 

• Which roles were difficult to fill and why. 

• Where bottlenecks appeared in your hiring process. 

• What feedback you received from your team during or after onboarding. 

• How workloads shifted throughout the year. 

• Where internal communication felt strong and where it slipped. 

• Whether your team structure still matches the real needs of the business. 

For example, you might have discovered that hybrid working expectations continued to evolve in 2025. You might have struggled with inconsistent working patterns or unclear expectations that made performance management harder.  

Or you may have found that job descriptions no longer reflected the real tasks people perform. Recognising these patterns early helps prevent them from carrying too far into the new year. 

Plan recruitment strategically rather than reactively 

January is the time to get ahead of recruitment needs, not wait for gaps to appear. SMEs often fall into the cycle of reactive hiring because they do not have the capacity to think long term.  

If you can identify roles that are likely to change in 2026, you can plan smarter and avoid rushed decision making later. 

Useful things to consider include: 

• Who is already stretched and may need support. 

• Where you expect natural turnover. 

• Which roles the business has outgrown. 

• Possible retirements or internal moves. 

• Future skill gaps as you grow. 

One of our clients realised in January 2025 that their operations manager was nearing retirement. Because they recognised this early, they were able to bring in a senior administrator who grew into the role over nine months. Early planning saved them money and protected business continuity. 

Budget around the April NMW and employment law updates 

April always brings changes that impact payroll, HR processes and recruitment. The National Minimum Wage increase in particular affects SMEs significantly. Even a small rise can create a knock-on effect across salary bands and team morale. 

Planning ahead allows you to: 

• Budget more effectively 

• Review salaries in a structured way 

• Avoid rushed conversations 

• Update job adverts and salary ranges 

• Prepare the communication you will share with your team 

It is also good practice to review your onboarding and contract templates in January. Any changes to flexible working rights, holiday pay rules or family leave entitlements will need to be reflected in your documents. 

Starting this early means changes feel manageable rather than overwhelming. 

Refresh job descriptions and responsibilities 

Roles evolve naturally in SMEs. People take on more responsibility, systems improve, processes change and customers expect different things. January is the ideal time to check whether job descriptions are still accurate and aligned with what the business needs. 

A well written job description helps you: 

• Attract the right candidates 

• Set clear expectations 

• Support performance management 

• Guide salary benchmarking 

• Improve internal communication 

It is common to discover that a role has shifted significantly, and the job description simply has not kept up. Updating them now saves confusion later. 

Review your recruitment process 

Every SME benefits from reviewing their recruitment process annually. Small improvements make a big difference.  

Some areas worth revisiting include: 

• Advert quality and clarity 

• Application process length 

• Interview structure and fairness 

• Manager capability and consistency 

• Onboarding experience 

• Use of AI or automation to reduce admin 

We recently worked with a client and discovered that inconsistent interview questions were causing confusion and making it hard for them to compare candidates.  

Another SME sent over their previous adverts, and we felt that they sounded too corporate for their culture. This may have put potential candidates off who would have been a great fit.  

Small changes improved both quality and engagement. 

Communication is key in January 

Teams appreciate clarity at the start of the year. When people know what the focus is, they settle quicker and feel more connected to the business. A simple January meeting can help create alignment.  

This could include: 

• Business priorities for the first quarter 

• Any planned recruitment 

• Expected changes to roles or responsibilities 

• Wellbeing focus for the year 

• Any upcoming policy changes 

• Development and training goals 

Many employees feel anxious in January because they do not know what the year will bring.   

Clear communication reduces that uncertainty. 

Practical steps SMEs can take in January 

Review last year’s recruitment challenges 

Identify what slowed you down and what worked well. 

Plan ahead for likely vacancies 

Think strategically about where the business is heading. 

Prepare for NMW and April legal changes 

Get contracts and payroll ready early. 

Refresh job descriptions and adverts 

Make sure they reflect real responsibilities and appeal to the right candidates. 

Communicate early and clearly with your team 

Help people feel grounded and informed in the year ahead. 

Final thoughts

January sets the tone for the year. When SME owners take time to review, plan and communicate, everything that follows becomes smoother and more structured.  

You do not need a complicated HR strategy. You simply need clarity, consistency and a proactive approach. 

A strong January prevents rushed recruitment in April, stress in July and the classic September scramble. Start early, stay intentional and your team will feel the difference all year.