The 2024 US Election Impact on HR

By Eric Knauf

With Donald Trump’s re-election, HR leaders in the United States of America are assessing how federal policy shifts could reshape the workforce over the next four years. The administration’s approach promises a blend of deregulation and tightening immigration policies, with implications for workplace dynamics, employer obligations, and foundational principles like diversity, equity, and inclusion. These anticipated policy shifts present challenges and opportunities for organizations, demanding that HR leaders adopt a proactive, flexible approach.

Here, we examine seven key areas where the administration’s policies may influence US-based HR practices, including immigration, DEI initiatives, labor regulations, healthcare, family and medical leave, federal workforce reforms, and technology and data privacy. Let’s explore how HR departments can strategically adapt to this evolving landscape.

1. Immigration Policies

As the administration intensifies its stance on immigration enforcement, HR departments must be prepared for new challenges. Proposed measures include ending birthright citizenship and increasing deportations, both of which will impact sectors heavily reliant on immigrant labor, such as agriculture, construction, and healthcare.

HR teams should anticipate:

• Labor shortages: Tighter immigration laws may lead to staffing issues as access to immigrant labor becomes constrained.
• Increased compliance requirements: The administration’s focus on immigration verification could mean more frequent audits and stricter I-9 documentation standards. HR teams should conduct regular audits, streamline verification processes, and explore third-party verification solutions.
• Employee morale concerns: Immigration policies may heighten anxiety for affected employees. HR can play a critical role by maintaining open lines of communication and providing resources for those facing immigration-related challenges.

Strategic HR leaders will build partnerships with community organizations and consult with legal experts to ensure compliance. Focusing on workforce development to broaden candidate pools within the domestic labor market can mitigate the impact of potential labor shortages.

2. Diversity, Equity, and Inclusion (DEI) Initiatives

The administration’s expected rollbacks in DEI initiatives could present challenges for companies prioritizing inclusivity and employee engagement. HR leaders should prepare for reduced federal support, particularly in organizations relying on federal contracts, and adapt to an emphasis on anti-discrimination compliance rather than proactive DEI initiatives.

HR departments can:

• Gather data to demonstrate DEI’s impact: Showing measurable benefits of DEI initiatives can help sustain these programs even without federal support. More importantly, focus on the value of belonging in organizations.
• Shift to voluntary programs: Instead of mandatory DEI training, companies can encourage employee-led initiatives and resource groups to foster a grassroots culture of inclusion.
• Communicate commitment to DEI: In times of regulatory shift, reassurance about the company’s commitment to inclusion can strengthen employee trust.

Despite changes in federal guidance, HR departments have the opportunity to continue fostering an inclusive culture by creatively reshaping DEI efforts in alignment with updated legal standards.

3. Labor Regulations

The Trump administration’s deregulatory agenda may relax certain labor laws, including workplace safety, minimum wage, and overtime policies. This shift could mean less federal oversight, prompting HR to take on greater responsibility for setting and maintaining safety and compliance standards internally.

Key actions for HR include:

• Updating workplace policies: Regularly reviewing health and safety policies to ensure they meet or exceed revised standards.
• Conducting internal audits: Reducing dependence on federal oversight by establishing rigorous self-regulation protocols.
• Managing union relations: Changes in National Labor Relations Board (NLRB) policies and right-to-work laws may make union organizing more challenging. HR teams must carefully manage relationships with unions and non-union employees to maintain a positive work environment.

Deregulation brings both freedoms and responsibilities. By proactively managing compliance and communication, HR leaders can build resilient labor relations and a stable work environment, regardless of external regulatory changes.

4. Healthcare Policies

The administration’s intent to repeal the Affordable Care Act (ACA) without a replacement framework introduces uncertainties around healthcare benefits. HR departments should prepare for potential disruptions in healthcare access and increased costs for employees and employers.

HR’s role will involve:

• Scenario planning for healthcare options: Re-evaluate benefits packages and consider high-deductible plans or Health Savings Accounts (HSAs) to offer cost-effective alternatives.
• Communicating transparently: Employee trust hinges on clear communication about potential changes and implications for healthcare coverage.
• Considering self-funded insurance: For companies with resources, self-funding can allow more control over plan benefits and cost management but requires significant financial commitment.

A flexible approach to benefits design will be essential for maintaining access to meaningful healthcare options that align with business goals, and employee needs in the face of healthcare policy transformation.

5. Family and Medical Leave

With discussions around updating the Family and Medical Leave Act (FMLA), HR departments may need to adapt leave policies to accommodate evolving federal standards. The administration could redefine eligibility and the scope of FMLA, including the possible introduction of paid leave options.

To prepare, HR teams can:

• Review current FMLA policies: Ensure policies clearly define qualifying events, eligibility criteria, and compliance requirements.
• Enhance employee support systems: Flexible return-to-work plans and resources like mental health support can help employees balance work and personal responsibilities.
• Build a culture of support: Emphasizing the company’s commitment to employee well-being can foster positive morale and productivity.

By being proactive, HR departments can enhance their leave policies and cultivate a supportive work environment, improving employee satisfaction and retention.

6. Federal Workforce Reforms

For public sector HR leaders, the reinstatement of Schedule F and potential workforce restructuring may significantly change employment protections and workforce management. Schedule F would allow certain federal employees to be reclassified as at-will, increasing turnover and affecting job security.

Public sector HR departments should:

• Communicate changes transparently: Address employee concerns around job security and clarify changes in employment protections.
• Develop agile workforce plans: Cross-training and succession planning can help mitigate disruptions caused by political transitions.
• Prepare for cultural shifts: Public agencies may experience changes in priorities with the addition of political appointees. HR can manage these transitions by reinforcing agency values and supporting employees through cultural adjustments.

Successfully navigating these federal reforms will require HR teams to adopt a strategic, resilient approach to managing change and supporting their workforce.

7. Technology and Data Privacy

Under the Trump administration, changes in technology regulations, particularly around data privacy and the use of AI, are likely. While a deregulatory approach may encourage innovation, companies must still prioritize data security and address potential risks associated with AI adoption.

For HR, this means:

• Strengthening data privacy protocols: Regularly updating data security practices, including employee consent forms and cybersecurity measures.
• Evaluating AI ethics in HR practices: AI can streamline recruitment and performance evaluations, but HR teams must address ethical concerns, such as bias and transparency.
• Developing targeted training programs: As automation advances, reskilling and upskilling employees for digital literacy and data analysis will be essential for future workforce readiness.

Proactive data privacy policies and skill-building initiatives will enable HR to lead responsibly in an increasingly digital workplace.

Conclusion

As the 2024 election ushers in potential shifts in US-based HR policy, HR leaders find themselves at a crossroads between regulatory changes and the evolving needs of the workforce. From immigration and healthcare to DEI and technology, these developments require HR teams to navigate complex and often sensitive issues while remaining agile and strategic. By embracing these changes as opportunities for growth and innovation, HR leaders can reinforce their organizations’ resilience, ensuring compliance and a commitment to an inclusive, engaged workforce.