(AP Photo/Julia Nikhinson)
With President-elect Donald Trump returning to the White House in January, HR leaders should start planning for a potential wave of policy changes that could significantly reshape the workplace. From immigration policies to workplace safety regulations, a second Trump administration may revive measures from his previous term and introduce new initiatives.
For HR, the stakes are high. Proactively preparing for these shifts is not just beneficial; it’s essential. By doing so, organizations can significantly mitigate risks, boost organizational resilience and provide vital support to employees during these uncertain times. HR leaders need to adopt several key strategies to help safeguard their organizations and ensure they thrive amid these evolving challenges.
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Tax changes that impact employee benefits and pay
Proposed changes to tax laws under the new Trump administration could include tax exemptions on earned tips, overtime pay and the removal of taxes on Social Security benefits. While these measures aim to help workers take-home pay, they also create challenges for payroll management and employee financial planning. For HR departments, these changes could require significant updates to payroll systems.
It will be essential to ensure that payroll software and processes align with the new tax regulations to keep business operations running smoothly. It’s equally important to inform and educate employees about how these changes might impact their earnings and retirement plans.
Providing resources like financial planning tools or access to financial advisors can empower employees to make more informed financial decisions. By addressing these shifts early on, HR can help reduce confusion and maintain trust among their employees.
Revisions to workplace safety and security regulations
Another area poised to impact HR teams and face significant changes is workplace safety. During Biden’s term, his administration introduced new OSHA standards to tackle heat-related illnesses and prevent workplace violence. The incoming administration might delay these initiatives or even scrap them altogether, which would leave safety protocols largely up to individual organizations. This shift would place a greater burden on employers to spot and mitigate workplace risks.
To best prevent disruption and increased risk, HR teams should conduct a thorough review of current safety measures to identify gaps or any weak spots and put the appropriate measures in place.
Additionally, refreshing internal safety policies to match best practices can help companies stay compliant with industry standards, even if the federal government isn't pushing for it. On top of this it’s important for companies to invest in safety training programs, especially those that focus on violence prevention to create a safe workplace environment and mitigate the risk of potential litigation.
By putting employee safety first, organizations can build a culture of trust and accountability, regardless of changes in federal oversight.
Restrictive immigration policies and global talent
A return to stricter immigration policies is likely on the horizon, including tougher visa checks, expanded travel bans, and possibly the end of the DACA program. This could significantly impact employees and employers – especially those who rely on international talent pools. It could mean limited access to skilled and unskilled workers, which will disrupt workplace planning and diversity efforts.
To tackle these challenges, HR leaders should start by conducting workplace audits to identify employees or roles that are reliant on visa documentation. Understanding these vulnerabilities can help organizations better prepare for potential disruptions.
Another proactive measure is diversifying recruitment strategies so that organizations aren’t solely dependent on global talent. At the same time, investing in domestic workforce development through upskilling and reskilling initiatives can help fill talent gaps and shortages. By focusing on talent from within, organizations can enhance resilience against immigration policy changes.
Keeping up with evolving regulations
In addition to federal changes, HR leaders should be ready for changes at the state and local levels. For businesses with employees across various jurisdictions, keeping up with a maze of regulations can be tricky and a time-consuming pain point. HR teams should make it a priority to stay updated on state and local labor laws and tweak company policies as needed to reflect these changes. Leveraging technology and data-driven insights can help streamline and make it easier to keep track of evolving compliance policies.
There’s no doubt that a second Trump administration will require employers to rethink and adapt their company policies and processes. By acting now, HR teams can future proof their organizations and prepare for what is to come. Conducting workforce audits, updating policies and leveraging innovative tools will be key in building resilience and reducing risk for your organization. As workplace regulations continue to evolve, proactive planning and flexibility will be crucial in facing tomorrow’s challenges.
For HR leaders, the message is clear: preparation begins today.
Sarah Peterson Herr is a former in-house attorney with over 10 years of employment law experience. As a member of the Brightmine editorial team, she focuses on compensation and benefits compliance, including health care benefits, health care continuation and retirement benefits, as well as DEI compliance and best practices. Sarah is a true employment law nerd with a passion for compliance.
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