How the US Election Affects HR
Donald Trump won the US election, and will take the role of President of the United States of America on January 20th 2017. But what implications does Donald Trump’s victory have on business, and how does the US Election affect HR?
US Election’s Impact on American HR Departments
Let’s start by looking at the ripples the US election will have on HR departments in America.
Here are some of the things Ere Media says we might see happening in the coming years, which may affect human resources departments in the States:
– Minimum wage. Donald Trump isn’t expected to do much by way of increasing the minimum wage. However, people do expect him to introduce tax breaks which will benefit American workers.
– Gender pay equity laws. CNN reported last year that the gender pay gap in the United States stands at around 78 cents to the dollar. This means, on average, women earn only 78% of what men earn. A lot of people worry that Trump does not support taking action on pay equity laws. Therefore, we can probably assume that the gender pay gap in the United States isn’t likely to improve any time soon – unless HR departments aim to make proactive change.
– Health insurance. Trump made it very clear in his campaign that he was going to get rid of “Obamacare”, and replace it with Health Savings Accounts (HSAs). What this means on a practical level is unclear, but we do know HR departments will have yet another big pile of policy and legislation to get their head around.
How the US Election Might Affect UK Business Operations
We might not have to worry about radical changes to employment law, but we will certainly be affected by the US election. HR departments in the UK are likely to feel the ripples.
It’s uncertain exactly how Trump’s victory might affect UK HR departments, but one area might be what it is doing to the value of the pound. Combined with the aftershock of “Brexit”, the US election results have sent the value of the pound into an even more unpredictable state. If you hire employees overseas, or if you manage a network of contractors, then you may well be affected by fluctuating exchange rates for quite some time.
The changing value of the pound also has an impact on travel. While this might not directly concern most HR departments, you may need to think carefully about how you handle trips away with your team.
Of course, HR is playing an increasingly important role in business growth and strategy, and therefore it is worth considering how international trade and business relationships will be impacted. You may well find yourself having to help navigate your company through troubled waters in the years to come!
According to the BBC, it has been China and the US driving global growth for the last 25 years. But it seems that Trump considers this joint lead “unfairly skewed towards China”.
What do you think is going to happen to HR departments in America, in the UK, and across the rest of the world? Do you think Donald Trump’s victory will have a bigger impact than a Clinton victory would have? Do you think the effects will be mostly positive or negative?
Please let us know by leaving a comment.
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