Senior Executive Lookahead: The Top Five Issues for 2022
The COVID-19 pandemic presented historic challenges for employers—from remote work issues to vaccine and mask mandates to increased pressures on workers coping with upheaval in their homes and communities. Organizations across the economy were forced to adapt and reinvent themselves amid uncertainty.
With the arrival of new COVID-19 variants, continued supply chain disruptions, and the ongoing Great Resignation, change will remain a constant in 2022.
These are the top five issues that should be on every employer’s radar in the months ahead.
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Executive Branch administrative actions will impact the employee-employer relationship
Employers must be ready for Executive Branch guidance, regulatory actions, and policy changes that might shift the employer-employee landscape.
The Department of Labor (DOL) is likely to increase its scrutiny of employers’ use of contract workers and arbitration agreements. We also expect DOL to continue efforts to implement a vaccine and testing mandate for large employers, encourage more union organizing, and expand overtime eligibility in 2022.
Worker discontent over wages, working conditions, and employee treatment have led to a resurgence of union activity. In 2021, the Labor Action Tracker from the School of Industrial and Labor Relations at Cornell University counted 178 strikes compared to 25 work stoppages in 2019 and only seven in 2017.
Employees are feeling emboldened to take drastic actions when they feel like they are being overlooked. Business leaders need to strengthen their relationships with their employees to safeguard against workplace disruptions.
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Employers will continue to face challenges accessing talent despite increased federal spending
During the Great Resignation, employers across the globe are looking for solutions to hire, train, and retain skilled employees to meet the demands of the global economy.
In response to the labor-market mismatch and stalled progress on immigration reform, employers should expect continued expenditures by states and the federal government on workforce development initiatives.
The effectiveness of this spending in addressing employer labor-market needs will depend on program design and employer engagement. Equitable access to training, reimbursement for training, and pursuing federal funding for training will be key issues for employers in 2022.
SHRM research shows that 54 percent of younger employees prefer a student loan payment assistance program over a 401(k) plan. Employers are now able to offer student loan benefits to workers tax-free thanks to the Employer Participation in Repayment Act, which became law in 2020 with assistance from SHRM.
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State policies will complicate the changing nature of work
The patchwork of state rules and regulations will require employers to change their business practices while failing to keep up with the changing nature of work.
States are poised to further complicate the current operating landscape for employers by expanding or implementing new paid leave laws, creating ways to tax remote employees, imposing new requirements on scheduling and hiring, and revising the rules governing worker classification and pay equity.
The pandemic has shown many businesses that it’s possible for employees to work productively from just about anywhere.
It is now incumbent on employers to aggressively track the locations of their remote employees and become familiar with the tax laws and licensure requirements of the states where their remote employees are working.
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Employers will continue navigating COVID-19 with competing government mandates
Experts and public health officials are warning that COVID-19 may be here to stay.
Employers must be prepared to address future variants of the virus, a changing guidance and public policy landscape, workplace protections, and how to support a hybrid workforce.
Competing requirements between state and federal governments will also continue, and long COVID will emerge as a workplace health issue.
Given the current public health situation, the shift from office face time to remote screen time will continue to change the way companies operate.
Workers demanding remote work policies and flexibility in when, how, and where they perform their work may encourage employers to increase outsourcing and reconsider what tasks or services can be offshored.
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Mental health and wellness will affect labor force participation and invite regulatory oversight
Now more than ever, employers are allocating more resources to address workplace mental health and wellness, especially in hybrid and remote work environments.
As with previous periods of economic dislocation, workers may drop out of the labor force entirely. This time, mental health and addiction are poised to drive disability claims and increase scrutiny of health care coverage.
Societal pressures, such as the evolving pandemic, equity, and social justice causes, economic instability, and political polarization will continue to affect workers and workplaces. Business leaders and HR professionals are leading transformational change by investing in effective wellness strategies, creating supportive workplaces, and engaging policymakers to maintain their comparative advantage.
Rather than being roadblocks, these five issues represent opportunities for business leaders to boldly bring about the changes they want to see in the world of work. In close partnership with HR professionals, CEOs can implement innovative, agile, and flexible policies that lead to better workplaces and a better world.
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Emily M. Dickens is the chief of staff, head of government affairs, and corporate secretary at SHRM, the Society for Human Resource Management. She earned a Bachelor of Arts and master’s degree in history at North Carolina Central University and graduated from the NCCU School of Law.