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    What Small Businesses Should Know About HR Trends In 2025

    Exploring the impact of pay transparency, AI in hiring, and more

    Posted on 12-30-2024,   Read Time: 6 Min
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    Highlights:

    • Pay transparency is on the rise, with more states requiring businesses to disclose salary ranges, and job seekers expect it.
    • As AI tools become more common in HR, businesses must ensure compliance and avoid discrimination in hiring and performance management.
    • Mental wellness initiatives are becoming essential for employee well-being, with businesses introducing wellness days and expanded benefits.

    Image showing several people in formal clothing who are seated in waiting room chairs with different things in their hands. Along with humans, there is also an AI being seated in a chair amidst them.

    If you run a small business, you know it is hard enough to keep up with your current human resources (HR) and compliance requirements, let alone stay informed of trends. But you also know there is value in being aware of those trends, even if they do not directly impact your organization just yet. Requirements that start in one state tend to spread into others—either in the form of new laws or heightened expectations.
     


    As we head into a new year, below are some trending HR and compliance issues we believe small businesses should be aware of.

    Pay Transparency

    Pay transparency generally involves sharing the expected salary or hourly wage range for a job when posting an open position. This practice is currently required in California, Colorado, D.C., Hawaii, Maryland, New York, and Washington.

    At the time of this writing, Illinois, Massachusetts, Minnesota, New Jersey, and Vermont are set to join them next year. Additionally, some cities and counties have their own requirements. With so many locations now requiring pay transparency in some form, job seekers largely expect to see pay ranges posted.

    Paid Sick Leave and Family Leave

    In 2025, Alaska, Maine, Missouri, and Nebraska will begin requiring paid sick leave or paid family leave, and paid sick leave expansions will go into effect in Connecticut, Michigan, and Washington. While a federal paid sick leave or family leave law remains unlikely, we do expect this trend to continue at the city and state levels. Employers with people working in multiple locations may find themselves juggling different requirements, and businesses not yet subject to any of these laws might nonetheless feel pressure to offer paid leave in order to stay competitive in the labor market.

    Captive Audience Meetings

    Alaska, California, and Illinois recently joined states that limit captive audience meetings. In these states, employers are not allowed to punish (or threaten to punish) employees for refusing to attend or participate in an employer-sponsored meeting when the purpose is to convey the employer’s religious or political views.

    On a national level, the National Labor Relations Board (NLRB) recently held that employers violate the National Labor Relations Act (NLRA) when they require employees to attend captive audience meetings under the threat of discipline or discharge and do not follow particular notice requirements related to those meetings.

    Artificial Intelligence (AI)

    AI is a hot topic in the HR space, as it is elsewhere, but all the HR rules, such as anti-discrimination, still apply to the use of AI by HR professionals. Businesses that use AI tools for hiring, performance management, or any other HR function are still on the hook if the tool results in discrimination or other unlawful outcomes.

    Supporting Employees with Menopause and Perimenopause

    Women in the workplace today are feeling more comfortable and motivated to call attention to their experience with menopause (the time that marks the end of the menstrual cycle) and perimenopause (the time before). They are not afraid to talk about the symptoms they experience and the stress those symptoms cause. In turn, employers are finding additional ways to help these employees manage their symptoms during the workday, such as frequent breaks, fans, or support groups.

    Mental Wellness

    Employees are starting to feel more comfortable talking about mental wellness in the workplace. In addition to providing an employee assistance program (EAP), employers are supporting employee mental health by encouraging mental wellness days (either with PTO already in place or adding days into the calendar), hosting wellness programs, establishing employee resource groups, and expanding benefits.

    Political and Legal Uncertainty

    Election outcomes often bring change to the HR and compliance space, but it is usually unclear for a time what those exact changes will be. While we think it likely that the incoming administration will prioritize changes to immigration and healthcare, among other issues, and appoint different people to run certain agencies, no changes have happened yet. Even when changes to rules and requirements do become official, it can take time to implement those rules, and courts can bring those changes to a halt.

    As always, working in HR means navigating uncertainty. The important thing is to stay reasonably informed about the future while focusing one’s attention on what truly matters today.

    Author Bio

    Image showing Wendy Dailey of Mineral Inc, wearing a green blouse with a red scarf around her neck and brown hair, wearing glasses and smiling at the camera. Wendy Dailey is a Talent Acquisition and HR Expert who serves as an HR Writer at Mineral, part of Mitratech.

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    ePub Issues

    This article was published in the following issue:
    January 2025 HR Legal & Compliance Excellence

    View HR Magazine Issue

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