The higher education sector has endured a raft of people-related challenges in recent years, from strikes to budget pressures. Universities HR (UHR), the body for HR professionals in HE, reflects on how the sector has dealt with these obstacles, and what lies ahead in 2025.
It has been a tumultuous few years in higher education. Whether it be the impact of a pandemic, the “great resignation”, our highest sickness absence levels since records began, industrial action; the “war on woke” or the cost of living crisis, HR and people professionals in HE have had a lot on their plates.
Now, with financial uncertainty firmly entrenched and a change of government, the sector isn’t feeling any less unstable and our members, alongside all HE staff, are being asked to do more, with less.
Indeed, UHR’s recent sector remit surveys have provided valuable insight into the challenges facing HR and people teams in universities.
Our most recent survey revealed that two-thirds of HR leaders had seen significant changes to the HR team size, structure or ways of working in the past five years, with the most common reasons being: an increase in size of the HR function; additional areas of responsibility; and implementing hybrid working and a restructuring of the HR team.
Higher education HR
HR leaders told us that the drivers for change in their teams included systems, processes and automation, optimising efficiencies and restructuring.
What we are also seeing is a genuine focus among HR leaders on the wellbeing of their teams, particularly at the current time of uncertainty and upheaval in the sector, as well as a desire to create more innovative ways in which staff can progress their careers.
Budget challenges
For HE providers, the budget presents significant financial challenges. The rise in employer national insurance (NI) contributions has placed further strain on already stretched budgets, intensifying pressure to reduce costs.
And while the increase in the national living wage will have a comparatively smaller impact, given that many HE employers are real Living Wage accredited or pledge to match these rates, it reinforces the sector’s enduring commitment to fair pay amidst financial constraints.
It only takes a flick through the newspaper headlines to see that many UK institutions have made difficult decisions in response to these challenges, rolling out voluntary and, in some cases, compulsory redundancy programmes.
What isn’t always included in these reports is that the single biggest operating cost for HE providers is staff – with staff salaries accounting for more than half of the entire operating costs of the sector.
Wider pressures
Additionally, universities are reassessing capital expenditure plans, pausing or scaling back projects to preserve financial stability. Some providers are also reducing the size of their estates, a trend accelerated by the adoption of hybrid working models.
While examples of mergers or shared service implementation remain limited, these approaches may become more prevalent as the sector explores collaborative strategies to achieve greater efficiencies.
The recent announcement by the Labour government of a tuition fee increase in England, with a similar rise anticipated in Wales, was welcomed by many, but it will have a modest impact on the books for most HE providers.
Any gain will likely be wiped out by the additional NI contributions announced in the budget, alongside increased pension contributions for the post-92 universities that use the Teachers’ Pension Scheme (TPS).
Managing workload and wellbeing
The UK HE sector is undergoing a period of significant transformational change and HR teams are at the forefront of managing its impact.
The financial challenges facing the HE sector are driving university HR teams to innovate like never before.”
People practitioners are tasked with supporting the restructuring and reshaping of professional services and academic units leading to increased demands on workload management and growing concerns around employee wellbeing.
At the same time, recruitment in many universities has been scaled back to essential roles only, further stretching capacity.
Despite these constraints, HR teams remain responsible for delivering core compliance and statutory activities, including their visa obligations and gender pay gap reporting.
Balancing these essential responsibilities with the demands of transformation requires careful prioritisation, resourcefulness and innovative approaches to workload management.
The wellbeing of employees also remains a priority for HR teams, particularly as providers navigate significant change.
By actively engaging with staff through employee voice mechanisms, organisations can identify the aspects of the employee experience that matter most, ensuring their wellbeing initiatives are both relevant and impactful.
Recognising the diverse priorities of the workforce, HR leaders are developing flexible offerings that promote resilience and support for all.
Effective communication is becoming a focus, ensuring these initiatives are accessible and widely adopted.
Clear and engaging communication strategies can help maximise take-up, ensuring employees benefit from the support on offer and feel valued by their organisation.
This approach not only enhances individual wellbeing but also contributes to a positive and sustainable workplace culture.
Innovation ahead
The financial challenges facing the HE sector are driving university HR teams to innovate like never before.
Necessity truly is the mother of invention, as these pressures accelerate the adoption of digital solutions to enhance efficiency, improve effectiveness, and ensure sustainability in a rapidly evolving landscape.
The swift adoption of AI is driving a need for improved digital skills across the workforce. HR professionals are leading efforts to upskill staff and leverage AI solutions to enhance operational efficiency.
However, success in this area requires both technological innovation and investment in people. This alignment between people and technology is key to fostering resilience and long-term success in the sector.
Diversity and inclusion continue to be focal points for HR teams, particularly in recruitment and retention of staff but also in response to government policy, for example around freedom of speech, harassment and sexual misconduct.
With the new government’s approach to employment, we are seeing a significant amount of work in the policy space, with our members seeking support on policies relating to family leave; fixed-term and zero-hours contracts and more.
HR professionals should be leveraging conferences, newsletters, networks and webinars to stay informed about emerging trends and innovative practices.
As the professional body for people professionals in this sector, we offer many opportunities for our members to come together, both virtually and in person.
These events provide a valuable space for colleagues to connect, share insights and exchange best practices, fostering collaboration and continuous learning within the sector.
Preparing for the future
As HE providers continue to face financial pressures and organisational change, HR teams remain at the forefront of driving positive transformation. We want to enable and energise our members and are committed to fostering collaboration, innovation and resilience.
Looking ahead, HE providers will need to focus on doing things differently and doing them better.”
One of the ways we’ve been doing this over the past two years is through the development of our member networks.
We’ve established nine special interest networks around themes which resonate with our members to provide connections, share good practice, learn from one another and ultimately provide support and camaraderie as well. This is in addition to our regional groups for HR leaders.
We also use these networks to gather information and feedback from members to inform our own research, webinars and CPD – to ensure that everything we do to support our members is driven by their needs.
Looking ahead, HE providers will need to focus on doing things differently and doing them better. By embracing innovation, fostering digital skills and prioritising the wellbeing and development of staff, HR teams will play a pivotal role in shaping the future.
HR teams will be vital to implementing cultural and organisational change in HE, because so much of what HE providers deliver is through their people, whether it is world-leading research, exceptional teaching, or student support. HR professionals are critical to enabling high performance across the workplace.
By continuing to champion the people agenda and fostering collaboration across the sector, we remain confident that HE providers will emerge stronger, more agile and ready for whatever lies ahead.
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