Managing HR in a small or medium-sized business isn’t about buzzwords or tick-box exercises. It’s about protecting your team, staying compliant, and building a workplace that supports long-term growth—without a dedicated HR department or unlimited resources.
At PurpleTree, we work closely with Irish SMEs to help them face real-world HR pressures—everything from recruitment struggles and rising compliance risks to managing hybrid workforces and improving retention.
Here, we outline the key HR challenges facing SMEs in 2024–2025, and how to tackle them with practical strategies, tools, and expert support.
Unlike large corporates with in-house HR teams and legal advisors, SMEs often juggle HR responsibilities between managers, owners, or admin staff. That makes it even more important to approach these five areas with clarity and care.
Irish employment law is constantly evolving—especially in areas like statutory sick pay, working time, health & safety, and data protection. Falling behind puts businesses at risk of WRC claims, reputational damage, and significant fines.
Mary, our Legal Counsel, works daily with SMEs to ensure contracts, policies, and practices are fully compliant. We also help businesses stay audit-ready with tailored HR reviews and real-time updates when legislation changes.
How to fix it:
Schedule a regular HR audit. Review contracts, policies, safety documentation, and payroll practices at least annually. We offer a full compliance check with practical, no-jargon recommendations for SMEs.
Without big brand recognition or large advertising budgets, many SMEs struggle to compete for talent. A slow or clunky recruitment process can mean losing great candidates to larger firms—or not attracting them at all.
How to fix it:
Use a streamlined, tech-supported process. Our HR Duo software includes an Applicant Tracking System (ATS) to manage applications, schedule interviews, and send updates—helping you present a professional front and hire faster.
We also help you write role ads that reflect your workplace culture and ensure every candidate interaction is timely, respectful, and engaging.
High turnover is expensive and disruptive—especially in small teams where everyone plays a critical role. If employees don’t feel supported, heard, or offered progression, they’ll start looking elsewhere.
How to fix it:
Structure your employee lifecycle—from onboarding to development and retention—with clear policies and simple tools. We help SMEs map out practical staff engagement plans and advise on cost-effective recognition and training strategies.
Seán, our Director of Workplace Relations, frequently supports SMEs in addressing morale issues, team dynamics, and retention planning through hands-on leadership coaching and HR frameworks.
As technology advances and customer expectations shift, many businesses find themselves short of key skills—especially digital or technical competencies. Relying on new hires to solve this can be slow and expensive.
How to fix it:
Upskill your existing team. E-learning platforms and modular training make it affordable and scalable. We help SMEs choose the right tools and develop internal training pathways that build capability over time—without breaking budgets.
Many small businesses still manage HR manually—through spreadsheets, email chains, or paper files. This leads to errors, missed renewals, and excessive time spent on admin instead of strategy.
How to fix it:
Our HR Duo software gives you a complete digital HR solution: centralised records, self-service for staff, automated leave tracking, document storage, and more. We also provide personal training and onboarding so you’re never left to figure it out alone.
David, our Director of Safety & Compliance, often supports business owners in setting up these systems while ensuring health & safety and payroll compliance stay aligned.
While the challenges are real, so are the opportunities—especially for proactive SMEs willing to modernise how they manage people and compliance.
AI is no longer a buzzword—it’s helping SMEs automate repetitive tasks like interview scheduling, responding to candidate queries, and even generating basic reports.
Start small: AI chatbots and automated workflows in HR Duo offer immediate efficiency wins without large upfront investment.
Flexible work arrangements are here to stay. But without structure, hybrid working can create friction, unequal workloads, and poor communication.
How to fix it:
Invest in communication tools and digital HR systems to keep everyone aligned. We help SMEs develop hybrid working policies, train managers to lead remotely, and foster inclusive cultures—so no one feels left out of the loop.
Modern employees expect more than a payslip. They want meaningful work, clarity, growth opportunities, and respect. This doesn’t mean costly perks—it means thoughtful structure.
How to fix it:
Introduce regular feedback loops, development conversations, and wellness initiatives. We work with SMEs to improve team communication, build stronger cultures, and identify low-cost ways to boost morale and retention.
Being fair and inclusive isn’t just the right thing to do—it’s a smart business move. Inclusive workplaces attract broader talent and make better decisions.
How to fix it:
Introduce blind recruitment techniques, review your job ads and interview practices, and create simple, values-led diversity policies. We support clients in meeting ED&I goals without unnecessary complexity or cost.
Today’s workforce expects benefits that reflect real-life needs—like mental health support, flexible hours, or meaningful time off. Generic schemes often miss the mark.
How to fix it:
Survey your staff. Introduce flexible benefits and wellbeing schemes that reflect what your team actually values. We help you create tailored, affordable benefit packages that improve engagement without increasing costs unnecessarily.
From handling HR basics to navigating complex employment issues, PurpleTree offers Irish SMEs the hands-on support they need to simplify, comply, and grow.
Whether you’re building your first HR framework or reviewing outdated practices, our senior advisors—Mary, Seán, and David—bring years of legal, safety, and people management experience to your corner.
Contact PurpleTree today for practical advice, HR audits, or a demo of HR Duo to see how we can help your business work smarter.
