Every year we like to take the time to look into our imaginary crystal ball and try to predict what is going to be big in HR and payroll in 2018. Like many others, we have expert knowledge in HR and payroll, but we are absolutely not clairvoyant. As a team we’ve come together to present these five predictions for HR & payroll in 2018.
The Rise of the Machines
While we don’t think a robot uprising is going to happen anytime soon (hopefully), we’re sure that as HR and payroll technologies improve alongside improved Artificial Intelligence, we’re going to see a major shift in the needs of the marketplace. The future absolutely includes technology advancements with a major focus on chat bots and programs to improve efficiencies. We recommend HR and payroll professionals look at improving their strategic capabilities while learning about the technology that is out there.
You know what robots can’t actually do? Get to know and humanely support people. Artificial Intelligence software might be able to answer questions and help with engagement, but they can’t be the ones who know how people are feeling and interacting with their environment. In 2018, HR will continue to look at improving workplace engagement and use it to create flexibility for employees through remote work, non-traditional schedules, and new types of benefits.
Partnering with Marketing
It might seem absolutely self-serving that Willory’s marketing manager believes HR should partner with marketing. However, as HR focuses more on people, it makes sense that there’s a stronger need to work with marketing and/or communications. The two departments focus on people. One of the biggest areas of intersection between HR and Marketing lies in recruiting. By working together, HR and Marketing are able to create relationships that truly matter. It is in building those relationships – internally and externally – that they can make a difference in their organization.
Companies have countless data points at their disposal. Data that can significantly help them to get ahead in both the marketplace and amongst their employees. By turning to data, HR and payroll practitioners can measure the cost of programs and initiatives, assess their recruiting strategies, better understand health and safety needs, and use predictive analytics. In fact earlier this year, SHRM shared that “32% of companies say they are ready to begin using predictive analytics.” This helps explain why one of the most important parts of implementing or optimizing a new HCM system includes building and understanding reports.
Boomers Continue to Retire
This was a theme we really started to track in 2017 and in 2018 we will continue to feel the impacts of aging Baby Boomers. As John discussed in his DisruptHR Cleveland presentation, the younger generations don’t want the jobs Baby Boomers are retiring from because they’ve formed their own paths. Now’s the time to invest in the appropriate succession planning, documenting standard operating procedures, and develop protocols for knowledge transfers.
In reviewing our 2017 predictions, which focused more on payroll. Many of the year’s predictions have been put on a backburner as the Trump administration focused on the Affordable Care Act and tax reform.
The changes to FLSA were meant to be monumental for many Americans and to go into effect December 1, 2016. The original 2016 rule was struck down in federal court, with ongoing litigations. A bill introduced in the House in November looks to reinvigorate the changes. For another year it appears we’ll be playing a wait and see game.
Throughout the year the Affordable Care Act was hotly contested within our government. The biggest blow to the ACA came toward the end of the year when the mandate and subsequent tax penalty requiring Americans have health insurance was removed beginning in 2019.
While student loans remains an important topic for many Americans, little was done as all the bills mentioned a year ago have remained at an “Introduced” status.
We knew at the end of last year that with President Trump’s inauguration we would see changes to the taxes. Right before everyone shifted their focus to Christmas this year, congressional Republicans celebrated passing of one of the most instrumental changes of President Trump’s first term: a sweeping tax bill that will definitely change employee taxes in 2018. We continue to pay attention to what this means for our clients, candidates, and consultants.
BONUS: The Mobile Workforce State Income Tax Simplification Act did pass the House, however, it remains on the Senate floor.
How do you think we’ll do with our 2018 predictions? Were any of them surprising?