What Will 2024 Bring?
AI Focus Workforce Management Imagine if a robot could handle the routine and repetitive parts of your job – including the ones that are necessary to ensure compliance with a multitude of employment laws? That day is now here. AI can streamline payroll processing and benefits administration – including automated benefits enrollment, payroll calculations, and tax filings – making these processes more efficient and less prone to errors. Performance Management PEOs and staffing agencies can now use AI to analyze employee performance and provide insights to their clients, identifying areas for employee development, optimal team compositions, and improved overall productivity. At the same time, it can help create personalized employee engagement and retention strategies by analyzing employee feedback and behavior patterns, suggesting tailored engagement to enhance job satisfaction and reduce turnover. AI Compliance and Security Challenges The benefits of AI come at a cost. There are massive compliance and security issues for PEOs and staffing companies utilizing AI in their processes, and customer use of AI may create risk that flows upstream to you. Bias issues are rampant with AI use in HR, and regulation is on its way at both the state and federal level. EEOC Commissioner Keith Sonderling recently offered suggestions for employers at FP’s AI Conference on ways to combat AI bias. Data security is also a major concern, as AI complicates your data privacy compliance by creating new types of data and new entry points for hackers to steal your data. AI notetakers are just one example of a new type of threat to be wary of. New Federal Standards Will Impact Joint Employment The NLRB released its final joint employer rule that makes it easier for workers to be considered employees of more than one entity for labor relations purposes in October – a move that will result in increased union organizing and collective bargaining efforts across the country in 2024 and beyond. The controversial rule establishes joint employment not only when one company has the right to exert control over terms and conditions of another company’s employees, but also when evidence exists of reserved, unexercised, or indirect control over any working conditions. This includes not only obvious situations like hiring and firing but also such other conditions as wages, benefits, scheduling, supervising, directing, and disciplining. While it isn’t slated to take effect until late February and could very well be derailed by litigation or even Congressional action, your organization should review our 10-step plan to respond to this rule as soon as possible. As with many legal developments, the new joint employer rule may warrant customer contract and policy modifications. Other Key Trends Will Shape Industry Three significant trends sweeping through the landscape will require PEOs and staffing agencies to stay nimble in the coming year: • An increasing number of states are enacting data privacy legislation, of particular interest to PEOs and staffing due to the enormous amount of sensitive data in their possession. • The federal government is cracking down on restrictions on competition – and not to be outdone, states like California are also ramping up the pressure. • Companies are increasingly looking south of the border to Mexico for solutions to staffing challenges given the key labor reforms taking place there.
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