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Trump's Presidency: What Does It Mean for HR?

November 21, 2024
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Trump's Presidency: What Does It Mean for HR?

This week may have been full of tension as you and your teams navigated the election.

As various media and experts have pointed out, the new appointment means significant shifts for HR, with potential impacts on everything from employee rights to diversity initiatives:

  • Stricter Immigration Policies: Experts expect aggressive immigration enforcement affecting industries like construction and hospitality.
  • Agency Leadership Changes: Trump will ​likely appoint new chairs​ for the NLRB and EEOC, altering labor relations regulations.
  • Heightened DEI Scrutiny: As AP ​reports​, "Trump has called for ending diversity, equity and inclusion programs in government institutions."
  • A Different Look at Tech Companies: Per ​Fortune​, Trump may deregulate bitcoin, have less restrictions on AI, and look differently at competition.
  • Outside the US, Tariffs Are Coming: Trump "has proposed imposing a 10% ​blanket tariff​ on all imported goods and higher tariffs on Chinese products."

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FEATURED PODCAST

A WTW report indicates that only half of employers feel they effectively deliver on pay programs, despite pay being a top factor for attraction and retention.

Luckily, we have ​Tim Reitsma​ sitting down with David Turetsky, CHRO and VP of Consulting at Salary.com and Former VP of People Insights Consulting at ADP to dive into a timely and powerful subject—transforming HR from a perceived cost center to a value-generating business function.

David shares unique insights on why it’s crucial to view people as more than just a line item, positioning them instead as a source of differentiation and innovation.

As he puts it, “If you think about people as your biggest asset, you have to see the relationship between total rewards, employee success, and your own as more than a cost—it’s a differentiator.”

Tim and David explored:

  • Total Rewards Go Beyond Compensation: Beyond a paycheck, total rewards include salary, benefits, career growth, culture, and upskilling—all key to motivating employees and driving business success.
  • Transforming HR into a Value-Creating Partner: HR should function as a core business unit, where investing in people strategically aligns with the organization’s long-term goals.
  • Upskilling as a Pillar for Success: Employee development, especially in AI and emerging tech, is critical for staying competitive in the evolving workforce.
  • Personalized Rewards as the New Standard: Flexible rewards, like health spending accounts and customizable benefits, are essential for today’s diverse workforce.
  • Communicating HR’s ROI Effectively: HR leaders should collaborate with finance and speak their language to demonstrate the ROI of total rewards, positioning these initiatives as growth-driving investments.

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HOW HYBRID WORKS

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Welcome to this week’s How Hybrid Works, your go-to section for the latest updates in hybrid work, sponsored by Tactic.

Stay ahead of the trends with expert insights, case studies, and industry news designed to help HR, workplace, and people leaders thrive in the evolving work environment.

The Hybrid Work Success Relies on WEMs — Here’s Why

Over the past decade, Workplace Experience managers have emerged as essential architects of modern work environments, skillfully integrating people, technology, and spaces.

This unique intersection allows them to navigate diverse areas such as facilities management, digital experiences, employee well-being, and cross-departmental collaboration.

By prioritizing engagement and well-being, WEMs play a crucial role in ensuring productivity and adaptability in our evolving workplaces.

What aspects of the WEM role do you find most challenging yet vital for achieving success?

Are Your Employees Pretending to Be Productive?

Amazon's return-to-office mandate, championed by CEO Andy Jassy, stresses that in-person attendance is key to a strong company culture.

However, the shift to hybrid work has pressured employees to showcase productivity, with over a third admitting to engaging in "pretend productivity".

This highlights the need for organizations to foster genuine engagement through clear systems and interactions, as happy employees—whether in-office or remote—are the most productive.

The Rise of Flexible Work: A Transformative Shift

Recent data from the U.S. Bureau of Labor Statistics reveals a significant increase in hybrid and remote work, with 22.8% of employees teleworking as of August 2024—contradicting the narrative of a mass return to the office.

As companies adapt, trends like "hushed hybrid" work and "coffee badging" reflect employees' desire.

With the demand for adaptability rising, those adhering to rigid policies may struggle to attract and retain top talent.

Quick Hits:

  • Team Offsite Investments: Companies spend between $520 and $2,600 per person on offsites, based on factors like team size and industry. Jason Fried, CEO of 37signals, shares a transparent breakdown of their meetup costs across various cities in the US, Europe, and Canada. Read more
  • Salary vs. Flexibility: Will Flexibility Come at a Cost? A MyNorthwest poll shows a split on remote work pay:​ 34% would take a pay cut, 34% want equal pay regardless of location, and 32% say it depends on salary. This trend spotlights the shifting value of remote work as corporate giants like Starbucks enforce stricter office requirements, sparking fairness and equity discussions, especially for employees with childcare needs.
  • Flexibility Remains Key Employee Demand: A recent Conference Board survey found that after salary, workplace flexibility—particularly control over work hours and location—is the most valued benefit among employees, with 65% of respondents placing it in their top five desired perks. What are the others?

THE FUTURE OF HR ROUNDUP

I follow and summarize the news that future-forward and people-centric leaders care about, so you don't have to.

This week:

What Day 1 of President Donald Trump's Plan to Make America Great Again Looks Like for HR.

One way or another, Donald Trump’s election win marks ​the beginning of a new era​, one set to reshape the U.S. economy, federal workforce, and labor landscape.

On Day 1, his administration aims to tackle issues such as ​immigration, oil production, and ending the war in Ukraine​, signaling a swift departure from previous policies. Here are five key areas HR professionals should watch closely:

  • Immigration Enforcement:​ With plans to reinstate programs that force asylum seekers to wait in Mexico and mass deportations via the Alien Enemies Act, companies relying on immigrant labor could face tighter restrictions.
  • Federal Workforce Changes: Trump’s proposed reinstatement of Schedule F could strip civil service protections, making thousands of federal employees at-will, potentially affecting recruitment and job stability.
  • Union Dynamics: His administration is expected to roll back Biden-era union gains, which could impact organizing efforts at major companies like Apple and Amazon and challenge workers’ collective bargaining rights.
  • Increased Tariffs: Broad tariffs, up to 60% on Chinese goods, could raise inflation, reduce purchasing power, and prompt retaliatory levies that could harm American exports.
  • DEI Initiatives:​ Trump’s prior restrictions on DEI training for federal workers may return, and tighter oversight on DEI programs in the private sector could bring more scrutiny to diversity efforts.

Each of these changes has the potential to redefine HR policies, from compliance and talent management to DEI strategy, making it essential for HR leaders to stay informed and proactive.

54% of HR Professionals Cite Burnout as a Key Issue

A recent survey of over 300 UK HR professionals reveals notable barriers to effective employee wellbeing initiatives.

Only 35% of senior leaders are committed to enhancing well-being, and 38% point to insufficient leadership support. Additionally, 90% cite the cost-of-living crisis as detrimental to employee wellbeing, with 40% highlighting a lack of financial investment.

To drive improvements, HR should secure stronger leadership buy-in. Investing in well-being, while money can’t buy happiness, it can buy a comfy office chair! Finally, let’s adopt data-driven approaches to measure our impact effectively.

Are you feeling the strain of being in HR?

HR professionals are navigating a whirlwind of challenges, with stress levels rising as they juggle the demands of organizational health amidst the chaos of the past five years.

HR must meet the expectations of both the organization and employees while maintaining trust through open communication.

To truly shine as strategic partners, HR needs a front-row seat in decision-making and a culture that champions resilience and joy at work.

How can we better support HR in this demanding role to lighten their load?

Quick Hits:

  • IRS Increases 401(k) Contribution Limits for 2025: Means retirement savers can now contribute up to $23,500 to their 401(k), with catch-up limits remaining at $7,500 for those aged 50 and older. SECURE 2.0 offers higher limits for participants aged 60-63, while IRA limits stay at $7,000. This increase allows individuals to save more for retirement, which is crucial for building financial security in the face of rising living costs.
  • Gen Z Does Not Prioritize Lifelong Commitments: Gen Z is increasingly turning to skilled trades, with 55% preferring them over traditional corporate roles (cause ​"polyworking"​), driven by rising college costs and the desire for job satisfaction and autonomy. This generation prioritizes growth and flexibility, viewing their careers as a series of impactful "career acts" rather than lifelong commitments. To attract and retain this dynamic workforce, companies must foster a flexible, purpose-driven culture that emphasizes well-being and supports continuous learning rather than rigid schedules.
  • Cultivating Resilience is Crucial for Employees: Experts agree that resilience can be developed through strategies like setting boundaries, fostering open communication, and supporting mental well-being. Companies with supportive cultures—where saying “no” is respected and well-being is prioritized—help employees manage stress and avoid burnout. Ultimately, while training can be provided, lasting change depends on employees’ willingness to adapt and grow.

Your Weekly Must-Read Insights about the Role of HR in the Future of Work

The world of work is changing faster than the time we have to understand it.
Sign up for my weekly newsletter for an easy-to-digest breakdown of the biggest stories.

Join over 42,000 people-centric, future-forward senior leaders at companies like Apple, Amazon, Gallup, HBR, Atlassian, Microsoft, Google, and more.

Unsubscribe anytime. No spam guaranteed.