Protecting privacy in HR systems

New privacy laws and requirements will take effect in five states in 2023, and several other states and the federal government are considering privacy-related bills. Businesses will be watching California closely as the California Privacy Rights Act that goes into effect Jan. 1, 2023, becomes the first to grant privacy rights to employees.

The act grants employees and job applicants who work in California certain rights regarding the personal information companies collect from them. Employers must also provide privacy notices when that information is being collected.

The CPRA will force companies to evaluate whether their systems are configured for data mapping – the process of knowing what data you’re collecting and how it’s being processed – so they can effectively and efficiently respond to employees’ requests under CPRA. Privacy management tools or plug-ins may also be necessary to help businesses fulfill rights requests.

While Texas’ current privacy laws aren’t as stringent as the CPRA, HR professionals will be watching how CPRA impacts companies. Similar legislation could pass in the coming years, and businesses and HR teams can prepare by investing in agile and flexible systems, allowing for adaptability when new requirements are introduced.

Maintaining compliance with complex regulations

The pandemic and underlying labor concerns that have been lingering for years have driven significant workplace change, such as rights and protections related to paid leave, minimum wage, and salary.

Staying up-to-date on laws and regulations governing employment practices, how employees are treated, and working conditions requires significant time and attention for businesses. Yet, for companies that aren’t compliant, the consequences can result in fines, lawsuits, and claims.

For small and mid-sized businesses, partnering with an employment lawyer or HR outsourcing provider can help you understand what requirements impact your business so you can ensure you’re compliant. HR professionals can then develop and enforce policies that help protect your workplace.

Boosting employee engagement

Nearly 100 million American workers quit their jobs during the “Great Resignation.” Now employers are facing a new challenge: low levels of employee engagement, also known as “Quiet Quitting.” A lack of employee engagement and dissatisfaction with pay are likely two key components driving this trend.

To reverse the trend, businesses and HR professionals should ask employees what they want through surveys or stay interviews, then analyze strategies that have not worked in recent years. Consider incentives outside of pay, such as retention bonuses or additional paid time-off. Then ensure your managers are equipped to lead, coach, and mentor their team members.

Refocusing recruiting, onboarding, and retention efforts can also help boost engagement. Turnover is costly, so invest time and resources in retaining employees you have. But when it’s time to hire, HR professionals should implement a comprehensive onboarding program that gives new employees resources and support to succeed early in their role.

Integrating flexibility with organizational structure

In a recent survey by Ogletree Deakins, 72 percent of company leaders reported that, since the pandemic, their employees’ desire for remote work is stronger. That’s prompted many companies to consider making remote work a permanent option.

Businesses should determine whether an in-office, hybrid, or fully remote workforce is best long term, then HR departments should develop and implement policies, procedures, and support that employees need to thrive in that environment.

For companies hesitant to commit to a hybrid workplace, discuss with company leaders what the impact on company culture will be and determine if a tailored approach could work. If an in-office strategy is best, be transparent in communicating the reasons with your employees.

HR’s role in helping companies grow and thrive

HR professionals will shoulder much of the responsibility in this workplace transformation. From developing policies and procedures to facilitating change to overseeing compliance and safety efforts, HR teams will be critical to how well businesses navigate the evolving workplace.

For small and mid-sized businesses, HR outsourcing services can fill the gap with expertise and competitive benefits that help attract and retain talent or by managing day-to-day tasks such as payroll, allowing your HR team to devote its time to more strategic initiatives.