FMJ Facilities Management magazine providing industry-specific intelligence to FM and property professionals
SME businesses are concerned at their ability to adapt to employment legislation changes and the shortage of skilled applicants in 2026.
New data from international recruitment firm, Robert Half, shows rising growing concerns among Small & Medium Enterprises (SMEs) as the Employment Rights Act moves closer to implementation following Royal Assent.
According to the recruiter’s latest research, while 53 per centof SMEs identified adapting to changing labour laws and compliance requirements as one of their top hiring challenges for 2026, this concern did not feature among the top five challenges for mid-sized or large organisations.
The findings underscore the disproportionate impact of regulatory complexity on smaller businesses, which often lack the dedicated compliance resources available to larger firms. As new employment legislation and evolving labour standards take effect, SMEs are under pressure to update policies, contracts, and processes while continuing to compete for talent in a tight market.
Beyond compliance, SMEs are also grappling with a competitive talent landscape. A shortage of skilled applicants (61 per cent) and difficulty attracting candidates with specialised or niche skills (59 per cent) remain pressing issues. Cultural fit is another priority, with 57 per cent of SMEs citing alignment with company culture as a key challenge. Additionally, 53 per cent report intense competition for remote and global talent as flexible work models gain widespread adoption.
To overcome these hurdles, SMEs are taking proactive steps to strengthen their appeal to candidates. The majority (82 per cent) are investing in employer branding and corporate culture to stand out in a crowded market. Process improvements are also high on the agenda, with 81 per cent streamlining recruitment workflows and 77 per cent increasing transparency through clear salary ranges and defined timelines. Flexible working arrangements are a major draw, with 75 per cent offering hybrid or fully remote options, alongside enhanced perks and benefits to secure top talent.
Matt Weston, Senior Managing Director UK & Ireland at Robert Half, said: “SMEs are now navigating a transformed regulatory landscape, with the Employment Rights Act marking a turning point. While its measures are designed to improve fairness and flexibility for workers, smaller businesses often lack the dedicated compliance teams that larger organisations can rely on. This means adapting to new regulations such as enhanced day-one rights and protections for flexible workers, could feel hard to navigate for some. At the same time, SMEs are competing fiercely for skilled talent in a market where flexibility and transparency matter more than ever. The businesses that succeed will be those that embrace these changes proactively, strengthen their employer brand, and create recruitment processes that are both compliant and candidate-friendly.”
According to the 2026 UK Facilities Management Market Research Report by askporter, facilities management professionals want clear, verifiable evidence of work being delivered, with teams that can communicate progress in real time. This requires technology that is affordable, intuitive, and quick to adopt.
Yet the report found that:
Over three quarters of FM professionals (76 per cent) experience operational inefficiencies caused by siloed software which results in a lack of real-time visibility.
Communications challenges lead to maintenance issues, with 73 per cent of teams being forced into reactive problem-solving on a weekly basis.
A worrying level of compliance gaps, with 44 per cent of admitting that half or less of their compliance tasks are tracked and automated within their systems.
Closing this gap requires the establishment of transparent and consistent communications using affordable software that gives FM teams the ability to track, evidence and improve their services.
This webinar provides a valuable overview of the main findings of the report by askporter followed by a panel discussion by FM thought leaders on practical, strategic solutions that can help close this communications gap.
To register for the webinar taking place 29 January 2026 at 11:00am click here.
