SHRM will focus on several key issues for HR professionals, CHROs, and CEOs this year, including regulatory changes under the new presidential administration.
Under the new Trump administration, significant regulatory changes are anticipated across key federal agencies, including the U.S. Department of Labor and the U.S. Equal Employment Opportunity Commission (EEOC), according to SHRM. With uncertainty regarding the fate of Biden-era workplace regulations, the evolving regulatory landscape will require HR professionals to stay informed and adaptable as existing policies are revisited, legal challenges unfold, and new rules are introduced.
HR professionals must be aware of regulations that directly impact their workers on a day-to-day basis, as well as office morale. For example, the 2024 overtime threshold for “white-collar” executive, administrative, and professional employees is currently under court scrutiny and has been vacated. The Trump administration may decide to stop defending it in court or begin new rulemaking to replace it.
CHROs need to be aware that following two 2024 U.S. Supreme Court decisions—Loper Bright Enterprises v. Raimondo and SEC v. Jarkesy—judicial scrutiny of regulatory actions and administrative proceedings will increase. These rulings should reshape how CHROs assess compliance costs versus the risk of court reversals. Additionally, leadership shifts at the EEOC and National Labor Relations Board will further impact the workplace. CHROs should stay alert to evolving enforcement and prosecution priorities, SHRM noted.
CEOs also should monitor the long-term impacts of the new administration’s regulatory agenda on their organizations.
Inclusion, Diversity, and Compliance
Another top issue SHRM will be focusing on is inclusion, diversity, and compliance with workplace law. HR professionals must be mindful that agencies under the Trump administration will take a different approach to inclusion and diversity (I&D) in employment. This shift will likely influence how policies and regulations are developed and enforced, ultimately cascading into the everyday workplace. Workplace policies, employee training programs, and office protocols will need to be re-evaluated to ensure alignment. SHRM anticipates that there will be increased focus on Title VII of the Civil Rights Act of 1964. Employment practices that consider protected characteristics may come under scrutiny, regardless of their stated intention. Religious accommodation practices may also be an area of focus because federal agencies may prioritize protections for religious expression, which could intersect with broader diversity efforts.
CHROs must ensure that their I&D initiatives are carefully framed to emphasize equal opportunity without granting preferential treatment based on identity alone.
SHRM anticipates a renewed focus on the strict interpretation of Title VII, signaling a shift toward a more literal and narrow application of anti-discrimination laws. This approach may lead to heightened scrutiny of employment practices that consider protected characteristics, regardless of an organization’s intentions or broader goals. CEOs should carefully frame their I&D objectives to reflect lawful, achievable goals based on equal opportunity, avoiding public commitments that suggest identity-based preferences, which could lead to legal and reputational risks.
Additional Priorities
More top issues that SHRM will address this year include:
- Workforce displacement and skills gaps driven by artificial intelligence. HR should address the critical need to upskill and reskill workers for anticipated changes due to AI. CHROs will need to face these challenges by helping their organizations balance technological advancements with the demand for human skills such as creativity, adaptability, and critical thinking while managing employee concerns about job security. As generative AI and automation become more commonplace, CEOs must consider how the integration of these technologies will impact their organizations’ bottom line, security, and employee morale and needs. CEOs also should look for ways to invest in boosting technical skills and improving digital literacy in the workplace.
- Workforce participation gaps. HR professionals will continue to empower their workforces, including by supporting untapped talent pools, increasing access to vital benefits, and enhancing workplace flexibility. CHROs must ensure their organizations are using all the tools available to them—including programs financed by the Workforce Innovation and Opportunity Act, apprenticeships, technical training services, and employer-led training programs to address talent shortages—and support individuals re-entering the workforce. CHROs in a variety of industries may continue to look to foreign-born talent to supplement workforce needs. CEOs should be weighing in with policymakers to ensure that public policy enables their organizations to expand work and education opportunities, prioritize underrepresented talent pools, and supplement U.S. talent gaps through a workplace immigration system that is transparent, efficient, and modern.
- Employee well-being and benefits. With more employees juggling caregiving across generations while managing their own health, HR should focus on worker productivity, retention, and well-being. According to SHRM research, at least 80% of working caregivers expect their caregiving to be long term, and this number is expected to grow. Furthermore, there is an increased need to help workers manage their mental health. Data from SHRM indicated that due to insufficient support, in the past year, 28% of working caregivers have had to reduce the number of hours they work, 21% have had to reduce their workload, and 14% have changed jobs for more flexibility.
SHRM will continue to advocate for policies and solutions that address these key challenges.
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