HR’s Impact on Managing Change in an Ever-Changing World
May 4, 2021
HR’s Impact on Managing Change in an Ever-Changing World

Organizations deal with change regularly, but when the pandemic hit, the scale of that change ramped up exponentially for everyone. Where prior to the pandemic, change may have been centered around “normal” business function such as production, employee retention, business expansion, profits, and losses, etc. When the pandemic hit, all of the change pertaining to those topics were still in play, but on a grander scale. The businesses that were able to manage the change associated were the ones that managed to stem the tide and survive. The businesses that struggled to keep up with all of the changes were the ones that either faced shutting their doors or are looking at deficits that may be too large to overcome.


Dealing with change in business is nothing new. It is built into the fabric of doing business, and it is what ultimately defines success or failure with many businesses. In fact, whenever a business, pre-pandemic, attempted a change initiative, it quite often failed, simply because the “right” people were not included in the effort to make it work. Couple that with a global phenomenon and a recipe for disaster is created. The easy fix in most cases is to involve HR or HR personnel early in the process. That way, the “right” people are involved before the employees impacted by any change have an opportunity to resist any change.


The Companies that Survived

The ultimate question is, “how did the companies that overcame, succeed?” That question was answered above; companies entrusted and involved their HR departments and personnel in the process from the start.

The companies that did not, made the mistake of thinking the employees who would be impacted by the change were the problem; rather than taking into consideration how they could manage the transition on employees so it would be accepted by the employees and not resisted. It makes sense if you take a step back and think about it. HR deals with people. Change often involves people. So why shouldn’t HR be involved with change management and assist employees to understand and deal with the change. They had HR personnel that were versed in change management and got them involved early on.
 
This was never more evident than when the pandemic hit, and companies were either forced to allow employees to work remotely or shut down completely. Working remotely for most was a foreign prospect. Yes, it had been bantered about for years. However, it was not common practice, and now every business basically was faced with the same issue. The successful businesses were able to ramp up quickly and efficiently logistically--and with technology they were able to remain as productive as possible. There is a good chance HR played a major role in those companies in achieving those goals.


Four Key Factors of Change

We observed that there were basically four things that had to take place in order for companies to transition from in-person to remote working. They were:


  1. Analyze what needs to change and who is impacted.
  2. Develop a plan to change it.
  3. Execute the plan.
  4. Measure the results.


Where some of the companies fell short was in the execution. They simply did not follow all of the steps. They implemented steps 2 and 3 but never considered all of the potential impacts, nor did they have a plan in place to measure the success or if it was something they could sustain.


Communication is Key

Another key component throughout was communication. When businesses were working in-person, communication was, or should have been, much easier to do on a daily basis simply because of the visibility and availability of employees to one another. When everyone works remotely, communication becomes a challenge. A challenge that needs to be addressed from the start to ensure success of the program.


Communication does not only apply to the remote work process; it pertains to the role it has in the change management process as well. Everyone involved has got to be on the same page whether that be with conversations, listening or with feedback. It is important to know that with communication, explaining the “why” is crucial. People need to know that there is meaning and a reason why things are being done the way they are being done. The worst thing that can happen is for employees to view change as change for the sake of change. Change has to have meaning and value to all involved. HR can assist in delivering that message to help employees see their opinion matters.


Include Employees in the Solution

Another aspect that the successful companies utilized was including employees in the change management process. The saying “if you are part of the solution, you can’t be part of the problem” holds true. Also, including employees provides them with a vested interest and buy-in to the process that they can impart on their colleagues and build across the organization. This proactive approach will help HR personnel identify employees in the organization that could be valuable assets for future change management initiatives.


Good companies always plan for the worst. The best laid plans do not always work out. It is best to have a plan B. Anticipation of what could go wrong has saved many companies future headaches down the road.  Change management is not a be all end all. But, it could be the difference between success and failure for a business that deals with change regularly. Entrusting your HR personnel, the people you have hired to deal with your people to help your people through change is not only common sense, but also the smart thing to do.

     

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Top 5 HR Trends That Will Shape Businesses in 2025

January 7, 2025
As 2025 kicks off, the HR landscape is evolving faster than ever before. Technology, shifting workforce expectations, and the need for businesses to be agile in a dynamic global environment are all driving change. What worked yesterday may not be enough today, and companies must adapt to stay ahead. Here are the top five HR trends you’ll need to watch closely in 2025: 1. AI is Changing the Hiring Game Artificial intelligence is no longer just a buzzword in HR—it’s a game-changer. Tools that can scan resumes, match candidates to roles, and even conduct initial assessments are becoming staples for businesses aiming to save time and improve hiring outcomes. In 2024, many organizations began integrating AI to remove unconscious bias and make their hiring practices more inclusive, and this trend is expected to accelerate. 2. Flexibility Isn’t Just a Perk Anymore Hybrid and remote work models are here to stay, but the conversation has shifted. In 2025, it’s less about offering flexibility and more about making it work effectively. Companies are adopting sophisticated tools for remote collaboration, redefining performance metrics, and ensuring policies address the nuances of managing both in-office and remote teams. The focus is on maintaining productivity without compromising employee well-being. 3. Wellness Goes Beyond Gym Memberships In recent years, wellness programs have evolved beyond basic offerings like gym memberships to address a wider range of employee needs. As companies recognize the link between employee well-being and productivity, they’re broadening their focus to include mental health, financial stability, and holistic support. In 2023 and 2024, for example, Delta expanded its employee wellness initiatives by improving access to mental health care. The airline worked with Spring Health, a new EAP provider, to create a larger and more diverse network of mental health professionals, offering better support for both employees and their household members. Looking ahead to 2025, wellness will become more deeply integrated into company cultures. Expect companies to go beyond providing reactive support to fostering proactive wellness through personalized tools, such as mental health apps, financial coaching, and enhanced benefits like paid leave for caregiving. With these programs, businesses are not just addressing immediate health concerns but also empowering employees to manage their overall well-being in a more holistic way. The focus will be on creating a supportive, sustainable work environment that helps employees thrive both at work and in their personal lives. 4. Upskilling is a Competitive Necessity Technology is evolving faster than ever, and companies are racing to keep up. Upskilling employees in areas like data analysis, AI, and emerging tech became a priority in 2024, and it’s clear that this trend will only grow. Businesses that invest in continuous learning programs—whether through certifications, on-the-job training, or digital learning platforms—are better positioned to stay ahead in their industries. 5. Data is Driving HR Decisions HR is leaning heavily on people analytics to guide decision-making. Instead of relying on intuition, businesses are using data to understand employee engagement, pinpoint reasons for turnover, and improve productivity. The emphasis on metrics like employee sentiment and workforce utilization gained traction last year, and more organizations are embedding analytics into their HR strategies to tackle challenges proactively. Final Thoughts The HR landscape in 2025 will be shaped by these transformative trends. Businesses that embrace innovation and prioritize their people will find themselves not just adapting but thriving in the evolving workplace. As these trends unfold, staying proactive and flexible will be the key to turning challenges into opportunities.

IRS Announces 2025 PCORI Fee Update

January 6, 2025
The IRS has released the 2025 Patient-Centered Outcomes Research Institute (PCORI) fee , which will increase to $3.47 per covered life —a $0.25 increase from 2024. This fee applies to plan years ending on or after October 1, 2024 , and before October 1, 2025 . What is the PCORI Fee? The PCORI fee was introduced as part of the Affordable Care Act (ACA) to help fund the research conducted by the Patient-Centered Outcomes Research Institute (PCORI). This research focuses on improving healthcare outcomes by comparing different medical treatments. The fee is levied on insurers, as well as self-insured and level-funded health plans. The fee is calculated based on the average number of covered lives under a plan and is due once a year, with the filing occurring during the second quarter on Form 720 , the Quarterly Federal Excise Tax Return . The payment is due by July 31 each year. Key Details for Employers and Plan Sponsors Who is Affected? : The fee applies to health insurers, self-insured health plans, and level-funded health plans. When is it Due? : The fee must be reported on Form 720 and paid by July 31 each year. How is it Calculated? : The fee is based on the average number of covered lives during the plan year. The updated $3.47 per covered life fee will be in effect for health plans with policy years ending between October 1, 2024, and October 1, 2025. Employers should be prepared to account for this increase when filing for 2025. For more information on the PCORI fee and its reporting requirements, consult the IRS Bulletin 2024-49 , published on December 2, 2024, or visit the IRS PCORI Fee page . 

Federal DOL Restores Simplified Tip Credit Rule: Employer Guidance

January 6, 2025
In a move welcomed by many employers in the hospitality and service industries, the U.S. Department of Labor (DOL) has officially reinstated the pre-2021 tip credit rule. This change, effective December 17, 2024, follows a recent court of appeals decision that vacated the “80/20/30” tip credit rule that had been implemented under the Trump administration. If you’re wondering what this means for your business, don’t worry—this update doesn’t require any immediate action on your part. What Was the "80/20/30" Rule? Before we dive into the implications of the DOL’s latest rule change, let’s quickly review the "80/20/30" rule. This rule, introduced in 2021, placed specific restrictions on how much time tipped employees (such as waitstaff and bartenders) could spend on non-tip-generating duties (e.g., cleaning, setting up, and other side work). The rule essentially required that tipped workers spend at least 80% of their work hours on tip-generating activities to continue qualifying for the tip credit. Moreover, under the "80/20/30" rule, employers could no longer use the tip credit to offset wages for certain non-tip-producing activities, and they had to ensure that employees spent no more than 30 minutes at a time on side duties. This increased the burden on employers, as it required more careful tracking of employee duties and work hours to remain in compliance. Why Was the Rule Vacated? The court of appeals decision in August 2024 ruled that the "80/20/30" rule was too restrictive and inconsistent with the intent of the Fair Labor Standards Act (FLSA), which allows employers to take a tip credit for workers who perform both tipped and non-tipped duties. The court found that the new rule created unreasonable administrative burdens and restrictions that were not in line with past practices or legal precedents. In response to this ruling, the DOL moved quickly to restore the pre-2021 tip credit rule. What Does the Reinstatement of the Pre-2021 Rule Mean for Employers? With the reinstatement of the pre-2021 tip credit rule, the DOL has effectively simplified the way employers can apply the tip credit to their workers. Under the prior rule, employees who perform a combination of tipped and non-tipped duties can still qualify for the tip credit, as long as their primary job responsibility is related to tipped work. Employers no longer have to track the precise breakdown of time spent on tip-generating vs. non-tip-generating activities in the same way. This returns to the more flexible guidelines where as long as tipped employees perform "related" duties (e.g., cleaning their station, setting up for service), they can still receive the tip credit for those hours, provided those activities don’t dominate their workday. What Action Is Needed from Employers? For most employers, this change will not require any immediate action, as the final rule effectively restores the pre-2021 approach. The main thing to note is that employers should continue to comply with the broader requirements of the Fair Labor Standards Act (FLSA) and ensure they are properly paying employees at least the federal minimum wage (including tips) when they apply the tip credit. Here are a few things to keep in mind: Reassess Timekeeping Systems: While the rule change simplifies some aspects of record-keeping, employers still need to ensure they have a timekeeping system in place that accurately tracks the hours worked by tipped employees. It is essential to ensure that the wages (base pay plus tips) equal at least the federal minimum wage. No Need for Immediate Adjustments: If you were already applying the pre-2021 tip credit rule, no changes are necessary on your part. For those who had adjusted to the "80/20/30" rule, reverting back to the previous method should not require significant changes. State and Local Laws: Employers should still be mindful of any state or local laws that may have stricter requirements than federal law. Always check your state’s labor regulations to ensure full compliance. Why Is This Change Important? The reinstatement of the simplified tip credit rule provides relief to many employers, particularly in industries like restaurants, hotels, and other service-based businesses where tipping is common. The pre-2021 rule is seen as more employer-friendly, offering more flexibility in how tipped employees can spend their time without losing eligibility for the tip credit. For employers, this means less administrative burden, reduced risk of compliance issues, and potentially fewer legal challenges. This shift is a step toward simplifying labor law compliance for businesses already struggling with the complexities of wage and hour rules. Looking Ahead As we move further into 2025, it’s important for employers to stay informed of any future changes in federal labor regulations. While this change restores a previous rule, the DOL’s stance on tip credits and wage issues can continue to evolve. Employers in tip-dependent industries should continue to monitor updates from the Department of Labor and legal rulings to ensure ongoing compliance. The DOL’s restoration of the pre-2021 tip credit rule is a welcome change for many businesses, offering a return to simpler guidelines and less restrictive requirements. For most employers, no immediate action is required, but it’s always a good idea to review your practices to ensure they align with the updated rule. If you need further assistance in navigating these changes, reach out to Simco to ensure your business stays compliant in 2025 and beyond. 

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