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Forecast for HR

by Sally Weldin, Sr. Human Resource Specialist

Published Jan 31, 2012

Question: I’ve been asked to do some business forecasting for my organization. Can you tell me what concerns HR might face in the coming year?

Answer:  Like the weather, nothing about 2012 seems predictable so far, but employment analysts who were interviewed by the Bureau of National Affairs (BNA) cited the issues below as top concerns and challenges that human resource practitioners may face in 2012:

Economic Recovery
We haven’t rebounded yet from the recession, though the economy has slightly improved. According to the Illinois Department of Employment Security (IDES), Illinois added 52,600 jobs overall in 2011, and almost double that, 95,900 jobs, since January 2010.  This marks a turnaround after 23 months of job decline. In addition, the Illinois unemployment rate fell last month. HR continues to help keep recovery steady by providing organizations with attractive benefits and watching for ways to save money.

NLRB Actions Require Monitoring
The National Labor Relations Board (NLRB) made headlines a few years ago when it waged a complaint in a termination resulting from the use of social media in non-work hours. Recently, it has become embroiled in pending litigation concerning its mandatory pro-union Employee Rights Notice, which it hopes to have posted in every covered workplace.

Health Care Benefits
Rising health care costs and plan design continue to be concerns as employers offer heath incentives and wellness programs to an aging workforce.

Reemployment of Veterans
Two big tax credits for hiring veterans signal that the Obama Administration is scrutinizing veteran protections in addition to jobs growth. Also, the passage of the Veterans Opportunity to Work Act in November 2011 amended USERRA and may make it easier for employees to file hostile work environment claims related to military status.

Rewards for Top Performers
As employers recover economically, they are shifting their focus on rewarding top-performing employees with increases in base pay, which may help them re-engage and retain them. This priority is further reinforced by the results of our Economic Trends Survey. Contact our survey department for general and merit increase information. 

Federal Government Activity
In addition to NLRB, the U.S. Department of Labor's Office of Federal Contract Compliance Programs (OFCCP) has issued proposed regulations on outreach and hiring of protected veterans and individuals with disabilities as well as goal-setting for these groups.

Globalizing Talent Management
As U.S. companies maintain a presence in the global marketplace, finding and developing talent in the international arena will be a key issue. Recruiting talent in general remains a challenge, especially in the field of engineering. In a recent press release, the United States Citizenship and Immigration Services (USCIS), a division of Homeland Security, announced that on November 22, the government received more H-1B petitions than can be granted under the quota limits set by Congress.

Technology Integration
HR needs more from its human resource information systems (HRIS) than old and outdated programs can supply. Technology has responded to a leaner HR presence by developing more employee self-service programs.

Keeping Employees Engaged
With businesses rapidly changing to meet the demands of the market in a down economy, your employees may have what is known as “change fatigue.”  Keeping employees engaged will be critical to recovery and rebuilding.  

HR Keeps Evolving
HR continues to be an important strategic partner as the business world changes. There may also be more Human Resource career opportunities in the coming year.

(source: Bloomberg BNA – Special Report: Outlook 2012, January 2012)