We all know the saying “failure to prepare is preparing to fail” which showcases the importance of planning ahead. Last year brought us all a lot of unexpected twists and turns at an alarming rate. As we kick off the 2021 year, it is important to understand the trends we expect to shape the year ahead. Below are a few Human Resources trends we believe will shape the 2021 year. We want you and your company to be as prepared as possible as we begin to navigate what our new normal will look like.
The Importance of HR
The pandemic showcased the importance of Human Resources for all industries. It is expected to stay front and center as we begin to navigate the upcoming year. Human resources professionals were tasked with solving and working through a variety of problems last year. Whether it was remaining compliant with the changes in legislation, or ensuring your team was well taken care of through all of this change – human resources personal were called on in a big way. As we continue to push through these interesting times, companies will need human resource professionals to continue to step up.
The COVID-19 vaccine rollout is in full effect throughout the United States and each week we are seeing more and more people gain access to the vaccine. Keep in mind there are legal factors when deciding how you will handle this as an organization. It is important to also keep in mind you may need to provide reasonable accommodations for those who cannot get the vaccine or those who may refuse to receive it. Communication to your team will be very important regardless of how you decide to move forward.
New White House Administration
2021 started with a new administration taking over the White House. Analysts expect that the new Democratic administration will work to reverse many of the policies that were implemented over the previous four years. Some areas to pay attention to that could potentially see change include:
- Health Care
- Paid Leave
- Retirement Plans
- Changes in Minimum Wage
Importance of Company Culture
The workspace for much of corporate America has seen a big change since last year. Most employers were forced to move some, if not all, of their workforce to work remotely. For some companies, working from home may make the most sense moving forward, and others may return to the office when safe. Whichever route your company takes, find ways for your employees to connect on a consistent basis. Employers should encourage team building activities all throughout the year. Additionally, push your employees to continue to educate themselves and grow in their trade. Company culture is proven each day, whether you are together in person or virtually.
2021 Retirement Plan and Health Savings Account Limits
Just like in 2020, employee 401(k) contributions for 2021 will max out at $19,500. The catch-up contribution maxes out at $6,500 for those who are turning 50 or older.
The Health Savings Accounts limits for 2021 are slightly higher than last year. The limit for self-only is $3,600 and the limit for families $7,200. Health Savings Accounts catch up contributions, for those that are 55 or older, stay the same at $1,000.
Mental Health and Employee Wellbeing
Our work-life and our personal lives were intertwined this past year, which has introduced the “always-on” mentality to a lot of us. It is important for employers to reinforce boundaries to protect employee well-being. This will help to maintain a productive and effective workforce. Employee wellness programs are expected to be on the rise this year. The younger generations within the workforce are very interested in mental and emotional health support and solutions. The older population still tend to want access to physical fitness solutions. It is time for employers to take a proactive approach to employee wellbeing by increasing communication and promoting local resources. This may take some creativity since some employees may still be working from home. Be sure to research all of your options with your employee’s wellbeing in mind.
Focus OneSource is Iowa’s only domiciled PEO. We help local businesses improve their profitability and productivity. With Focus OneSource as a partner, owners can focus their time on growing their core business. We want to take the backroom work off of your plate, which includes keeping your business compliant through these interesting times.
We understand that the PEO model is not a fit for every small business owner. As we notice changes in the local and national business trends, we adapt. Our team of experts is here to take the load of payroll and payroll taxes, benefit administration, and HR administration and compliance off of your shoulders. Focus OneSource is happy to offer our customers the ability to pick and choose the services that best fit their unique business needs. We have your business covered from being the broker of record to the full-service PEO and everything in between.
Call us today to find out how we can meet your business’ needs!