Every year, the HR field goes through major transformations. From the rise of analytics to an increased emphasis on employee engagement levels, change is always taking place. In conjunction with the new presidential administration, an increasingly younger workforce and the introduction of new technology, here are five changes in HR that may impact your business this year:
1. Affordable Care Act
The Trump administration has repeatedly stated that it will repeal and replace the Affordable Care Act (ACA or Obamacare). Therefore, as an HR leader, you must stay up to date with the latest movements in the health care and insurance sectors. The plan to take its place hasn’t been clarified. Nor has the timeframe.
2. Overtime pay
In May 2016, President Barack Obama and Secretary of Labor Thomas Perez updated the DOL’s final rule regarding overtime regulations. This will extend overtime pay to an estimated 4 million workers within the first year of implementation alone. Prior to this motion, businesses did not have to pay overtime if their workers made more than $23,660 per year. This rule update raises the limit to $47,476 a year. This change may likely affect many employees at your organization.
There’s no word on whether the Trump administration will work to undo this law.
3. Minimum wage
The federal minimum wage is $7.25 an hour, yet 29 states plus the District of Columbia have a higher minimum wage than the national average. Many state and city governments are in the process of increasing or are debating increasing their minimum wage, which could impact your non-salaried workers.
Chances are likely this will continue to be driven by states, cities and counties.
4. Feedback, not reviews
With a younger workforce on the rise, many companies are doing away with the dreaded performance review. Instead, organizations are turning to continuous feedback, rather than only once or twice a year. As an HR leader, you may be responsible for reworking your existing performance review strategy this year.
Because more companies are looking to do away with reviews, there’s a need for a better audit trail in case you need to lay off or fire workers. In fact, as a best practice many companies institute an employee performance improvement plan with information about the steps the company has taken to help the employee.
5. Rise in technology for remote working
People want the option to work remotely and not be tied down to their desks. Many offices across the country are introducing video conferencing tools and work-from-home policies to improve workplace satisfaction levels and leverage innovative technologies. This is something to be aware of as an HR leader moving forward into 2017 as 60% of the workforce will be working remotely. And more HR departments are working with IT counterparts to help make this happen for their company, including assisting with internal communications plans to roll this out to employees.