Whether you’re with her or with him, today is election day! 229 days ago, Ted Cruz was the first to announce that he was running for president under the Republican ticket. What we didn’t know is that this election cycle would be filled with over ten different candidates vying for their party’s nomination. There has been a lot of hate mongering, lies, scandals, and some would even call this election a complete mess. We know the impact the election will have on the economy, but do we really understand the true impact on the HR and Recruiting industry?
With less than 12 hours before election results are flowing in, here are some things you need to know about how this election will affect HR, Recruiting, and the Talent Acquisition industry as a whole.
FMLA and family leave
Hillary Clinton has called for different regulations that are going to require employers to provide at least 12 weeks of paid leave.
Donald Trump would enact 6 weeks of paid maternity leave, funded by the elimination of unemployment insurance fraud and a childcare tax credit.
While there hasn’t been any firm decisions on whether these plans are going to be enacted or if they’re even going far enough, the implications on employers will be substantial. Employers will have to look at how these potential regulations are going to affect their business across various states and cities.
Minimum wage and compensation
Hillary Clinton will seek a raise in the minimum wage to $12 an hour.
Donald Trump will seek a raise in minimum wage to $10 an hour, but also states that he wants to give states the ability to set a minimum wage based on the appropriateness of their state.
The minimum wage argument has been more circulated in recent years as cities like Los Angeles, Seattle, Emeryville, San Francisco, Mountain View, etc., that all look to increase it to $15 over the next couple years.
Will either one of these presidents be able to fix the minimum wage and find a fair balance if elected? Obama raised the federal minimum wage from $7.25 to $9 an hour and was both praised and criticized. Other issues like overtime and pay equality are on the ticket this year, but what will the president do about it?
Unemployment and the pool of available talent
The current election cycle is much different than say in 2008. With the unemployment rate falling from 10.1% to 4.9%, the Federal Reserve considers this employment rate to be near full employment.
For employers, this means hiring is much more difficult. It's critical to know where the talent is and have established relationships with them. Prepare to snatch them up before the unemployment rate sinks deeper within a new presidency.
Both candidates offer to bring more jobs to America, which means it's going to be even more harder to hire. It's a candidate's world and you're just living in it.
Chatrane Birbal, a senior advisor for SHRM, said, “By monitoring the presidential candidates’ positions on employer-sponsored health benefits, HR can better understand how they stand on such issues as the tax treatment of health benefits, the impending excise tax on high-value plans, wellness programs and the definition of full-time [employee].”
The way your organization manages its health care offerings will change if Donald Trump is elected. Trump promises to repeal the Affordable Care Act and replace it with a system that relies more on government funding. Hillary Clinton says that she’ll expand the program, which could also mean changes may arise if she alters the requirements for employers to offer employees insurance.
The impact on the presidential election could cost companies millions of dollars regardless of who's elected. From FMLA to health insurance, employers should watch what happens this evening as whomever is elected will surely have an impact on the HR and Recruiting industry.