HR Trends Impacting Employers in 2019: Part 4

May 3, 2019

Welcome to part four in a series on the HR Trends impacting employers in 2019. Read part one here, part two here, and part three here.

HR TRENDS FOUR: Increased Complexity

The complexity of the modern workforce is accelerating. The “gig economy” is a reality. According to Upwork (a global freelancing platform), by the year 2020, 50% of the U.S. workforce will freelance in some capacity. In addition, many organizations are utilizing flexible workforce options, with employees working remotely.

Analytics and AI

Adding to the HR trends mix, analytics and AI (Artificial Intelligence) are having an increased impact on HR functions like recruiting, onboarding, performance management, employee engagement and benefits. These workforce changes have created both opportunity and complexity.

The use of AI and analytics involves an incredible responsibility to discern appropriate use, identify validity, build trust in the data, and incorporate transparency, along with a firm understanding that sometimes human behavior is impossible to predict and/or replicate.

Employee or Independent Contractor?

Employers must be well versed in the rules impacting the analysis of whether an individual is an employee or an independent contractor. As with many employment matters, there is no one rule or factor and the analysis can be complex. Adding to the confusion, there is no single test and many governmental entities have criteria for examining the independent contractor v. employee question, including the IRS, DOL, NLRB and state agencies such as Minnesota Unemployment. Consequences of mis-classification include possible back-pay, fines and other penalties.

Employers must understand the Federal, State and local laws that impact both onsite and remote workers. On the Federal level, the DOL (Department of Labor) is expected to issue a proposed rule to announce a new salary threshold for the FLSA’s (Fair Labor Standards Act’s) white-collar exemptions from overtime pay in 2019.

State Law v. Federal Law

Adding to the confusion, state law may not mirror Federal law, such as Minnesota’s minimum wage. Federal law requires a minimum wage of $7.25/hour while Minnesota minimum wage increased on 1/1/2019, to $9.86/hour and $8.04/hour. (Remember to update your employment law posters!)

Requirements such as ESST (Earned Sick and Safe Time) are being enacted across the nation. These rules (such as the Duluth, Minnesota ESST ordinance in effect 1/1/2020) may impact employees not located within the geographic boundaries of the employer.

From myriad layers of employment laws to freelancers, remote workers and technology, it is imperative for organizations to understand the forces impacting the modern workplace.

The year brings exciting opportunities as well as increased complexities. Keeping tabs on HR Trends and being proactive will pay off for employers.

Thanks for reading… we hope you enjoyed this four part series! Stay tuned for future tips, tools and posts on all things HR.

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Reach out for a free and confidential consultation at info@audacityhr.com.

About the Author 
HR thought leader, Stacy Johnston, provides innovative HR solutions with a mission to support organizations in understanding and engaging their biggest competitive advantage… their employees. Johnston writes and speaks about contemporary HR topics. She is a licensed attorney and holds the SHRM-CP and PHR credentials.

About Audacity LLC: HR Consulting
Audacity LLC’s passion is HR. We help organizations build peace of mind, dial in productivity and enhance employee engagement by creating agile HR solutions that align with mission and core values. Comprehensive solutions include tips and tools to effectively recruit, hire, onboard and retain an engaged and skilled workforce. They help organizations build strong, cohesive and inclusive teams and develop mindful leaders at all levels. Bold and innovative Human Resource solutions save valuable time and money.

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