by Howard Tarnoff, Senior Vice President, Ceridian.
At this time of year, prediction lists are as common as mistletoe, Christmas trees, and a rich cup of eggnog. Normally I wouldn’t add my own ornamentation to the already well festooned season, but since I believe 2016 is going to be a momentous year for human capital management (HCM), please forgive the prognostications.
It’s going to be a slow year for new federal statutes, period.
It’s an election season, right? I expect the Congress to be in a combative, unproductive mood, especially when it comes to legislation involving business, employers and employees. If you thought the first half of the 114th session (2015) was slow, the second half will be positively famine-like. The corollary to the absence of statutory productivity will be smoke, mirrors and obfuscation. I anticipate a lot of screaming, mostly by members of each major party at members of the opposite party, all of which can generally be ignored until the 115th Congressional session gets underway.
Prepare yourself for public policy change.
Statutory inaction does not imply that the President and administrative agencies are prevented from promulgating new executive orders and regulations. For example, on September 7, 2015 the President issued an executive order Establishing Paid Sick Leave for Federal Contractors. I believe we will also see administrative activity regarding the minimum wage, overtime calculations, paid sick-leave regulations and more. The absence of statutory action (first prediction) will create a surge in regulatory activity.
Many businesses will struggle to maintain compliance with these new regulations.
Businesses with dedicated human resource (HR) staff and the right HCM tools will do better navigating the new regulatory landscape than, say, small businesses without dedicated HR staff. When combined with the increasingly complicated requirements of the Affordable Care Act, new changes to FLSA, wage and hour laws and more are going to make compliance problematic if not impossible.
The technology tool revolution will accelerate.
The first iPhone was released on June 29, 2007. The first Android device followed in October 2008. The first iPad was released April 3, 2010, and not long thereafter the first non-Apple tablet appeared. As of March2015 there were 700 million iPhones sold, twice the population of the United States. (And those are just iPhones, not all mobile phones.) If you reflect on your current use of iPhones, in just eight years we have witnessed a phenomenal revolution. That revolution is now bringing HCM to the palm of your hand. Expect it to continue, only faster.
New technology will bring new ways to address old problems.
If you are a small business struggling to meet the compliance requirements of both ACA and wage and hour laws, new technology may provide you with hope and solace. New cloud technology solutions are leveraging these mobile devices and more to provide businesses with a plethora of easy-to-use solutions to complex problems. For instance, new HCM technology can provide your workers with anytime anywhere access to their work schedules, pay stubs, HR information, and a wide variety of additional information. For employers, increased visibility into employee schedules and other business information will not only save the business money (in terms of smarter, more efficient scheduling), but should also assist with compliance. These new tools are making work life better and more productive and profitable for employers and employees alike.
Finally, continue to be amazed by human ingenuity.
We are a creative species. I am constantly amazed and heartened by human ingenuity and our ability to work on and execute solutions that deal with our basic needs (food, shelter, clean water and more), and first world issues (managing today’s workforce in the most effective way possible). Whether it’s reducing poverty in the world, or creating an easier way for workers to manage their work life balance, expect the creative genius of men and women everywhere to continue to flourish in the New Year and beyond.
Best wishes for managing your human capital better in 2016, better than at any other time in history. It can be done!
Howard Tarnoff is Senior Vice President for Ceridian, responsible for launching and overseeing the Award Winning Customer Success Program “XOXO” and other initiatives. With over 30 years of HCM experience, Howard is a highly sought after thought leader in the industry, especially for his insightful trend analysis. His deep domain expertise across multiple verticals, leadership experience and deep understanding of the HCM industry make him an invaluable asset to Ceridian. Follow him on Twitter @htarnoff.