Since the start of a new year, I’ve seen a different article about HR trends in 2019 pop up every few days. Every publication and vendor has a different perspective about priorities and emerging issues, but there are some common threads.
Talent Acquisition Crisis
Almost every article highlights the crunch for talent and the shortage of skilled trades and manufacturing workers. Across the country, employers are faced with historic low unemployment figures and increasingly competitive pressures to retain their workforce. Prevailing solutions include embracing the ‘older worker’ and a growing trend toward developing and training existing workers and implementing formal apprenticeship program. Perhaps the most significant response is the emergence of the ‘gig worker’. One article I read recently expects that by 2020, approximately 50% of the U.S workforce will be temp, contract, or freelance workers. Wow! If you have not considered remote contractors or freelance workers yet, it will be prudent to explore it in 2019 and beyond.
The growth of Artificial Intelligence used in Recruiting goes hand-in-hand with talent shortages. What used to be an easy candidate database search now requires candidate mining to engage passive candidates and hone in on the skills you most need. Skilled recruiters aren’t just good with people – they are good with embracing technology and capitalizing on efficiencies they can gain from it.
Diversity and Pay Equity
Pay equity for women and minorities has remained a hot topic throughout 2018. Many states have responded by enforcing pay equity regulations. Employers should be evaluating the variance in pay across gender and minority classifications to address any discrepancies and should review pay policies to avoid future issues. Several states now prohibit asking about salary history and some even prohibit basing pay decisions on a person’s prior salary. Employers need to understand the laws in every state where employees are based – and monitor the rapid changes – in order to ensure compliance.
While pay equity has become a buzzword focusing more attention on compensation, don’t neglect ensuring diversity in your workforce. California, generally known to lead the way in employee-friendly regulation, has implemented a law mandating that publicly traded companies place women on the board of directors by the end of 2021, and huge corporations are beginning to boast the inclusion of women in C-suite roles and on their boards. Diversity is not just about gender though, it’s about age, race, ethnicity, sexual orientation and any other notable difference between groups of people, whether protected by law or not. HR and Hiring managers should make concentrated efforts to recruit, hire, and retain diversity. Savvy employers focus not just on diversity, but also on inclusion, which requires a concentrated effort toward building a culture where differences are truly appreciated.
#ME TOO
It’s not over – the #METOO movement continues into 2019 requiring employers to take a good look at their policies and practices. If your company has not conducted sexual harassment training and communicated policies regarding harassment in the workplace since the surge in media attention, do it now. Don’t become another headline!
Wages and Benefits
Some forecasters predict growth in wages, perhaps largely due to efforts to close pay equity gaps, but concern about potential economic recession hangs in the balance. In addition to wages, companies are facing challenges with recruitment and retention due to changes in the employee benefit landscape. Employees today want more than health insurance and 401(k) plans. Generous paid time off and leave policies, remote work access, wellness plans, and student loan repayment programs continue to increase in popularity as changing demographics in the workforce require employers to be more responsive.
Concern about the future of FLSA changes is back in the headlines as well. Although legislation during the Obama administration was stopped just before implementation, it is widely expected that some level of change will occur during Trump’s presidency.
Drug Use
The opioid epidemic, legalization of marijuana at the state level, and exorbitant prescription drug costs are forcing many companies to reexamine their drug testing policies and drug benefits. Whether decisions are driven by cost control, concern for employee safety and well-being, or the challenges of recruiting in some industries, concerns about drug use among employees looms large.
Other Trends
Other topics still getting attention across various HR trend articles include
- the importance of meaningful data and metrics – data should drive decisions and policies
- the role of company culture and values in consumer decision-making – consumers want to buy from companies with values similar to their own
- buzzwords like Agility and Empowerment – HR and Managers have to change as workforce demographics change
- workplace violence – shootings, stabbings, and physical and cyber threats remain of significant concern to employers
- IT security and breaches – almost everyone has been affected in some way
- compliance – the myriad of state and federal regulations are more complex and change faster than ever before
- employee handbooks – best practices require a ‘living document’ that gets updated quickly in response to compliance and other changes, these can’t be the ‘same old’ year after year
For more information or support in any of these areas, call or contact us today.