Back to the Future – Sort Of

December 22, 2022
Blog
Inside HR
Strategic Planning
Read time: 3 mins

My first career was as a hairdresser, and one of my instructors at “beauty school” always told us to learn the basics because there are really only a couple of haircuts—and they tend to recycle themselves, with minor changes every 10 years or so. Although I haven’t been a practicing hairdresser for 30 years, I still see his statement proving true every day as haircuts seem to recycle. Years later I was reminded of this while watching “Back to the Future.”

Now that I’ve spent over 20 years in human resources, I’m seeing some of the same patterns—we seem to be returning to some past requirements, with certain modifications—as the Department of Labor revisits the Fair Labor Standards Act and the Independent Contractor Rules, both of which may have portions that look like prior versions. As we wait to see if the FLSA duties test will return to something resembling the previous percentage requirements instead of the current “primary duty” test and whether the Independent Contractor Rule will more closely resemble its 2020 version, we also need to keep our eye on other legal and operational requirements for 2023.

National Labor Relations Board General Counsel Jennifer Abruzzo has issued a memorandum urging the NLRB to evaluate the use of electronic management technologies that, if adopted, could render the use of artificial intelligence and other technologies unlawful under the National Labor Relations Act indicating a belief that “close, constant surveillance and management through electronic means threaten employees’ basic ability to exercise their rights.” Although the memorandum does not define the type of AI that might be unlawful, Abruzzo references items such as GPS tracking devices, cameras, wearable devices, radio-frequency identification badges, keyloggers and other monitoring software, phones and other devices with tracking capability, and artificial intelligence and algorithm-based decision-making tools, such as applicant personality tests. Currently, this is a proposal only, but something to keep our eyes on in the new year!

On a less compliance-related note, a 2021 McKinsey report of European chief human resources officers indicated a need to return to more employee-centric HR practices. For many years, HR has been tasked with creating efficiencies through strategies such as employee self-services, developing and implementing stronger processes, and better control of expenses related to human capital. These European CHROs indicated a desire to rethink their HR function and transform the organization’s engagement to be less reliant on self-service solutions, or at minimum, have face-to-face solutions available for employees as an option. They pointed to the need to build personal service into these relationships in light of the increased number of employees working remotely. They also pointed to a greater need for recognition of individual capabilities and contributions across the entire workforce. Keeping these factors in mind along with understanding each employee’s individual plans and goals should be key factors in HR’s 2023 plans. It also underscores the continuing desire for flexibility that has become a constant employee request as we emerge from the pandemic and discover what the new workplace looks like.

Although our return to some modified prior work rules and employee relations philosophies may not have the potentially devastating impact that Marty McFly faced if his parents did not manage to get together, we still need to be aware of our changing HR environment. Or as Doc would say, “Great Scott!”

Wishing you all a joyous and safe new year!