As we approach a pivotal moment in U.S. politics, a new administration will soon take the reins, bringing with it a fresh set of regulatory priorities that could significantly affect HR leaders. Understanding how to adapt workplace policies and ensure compliance will be crucial in this changing landscape.

As Emily Dickens, Chief of Staff and Head of Government Affairs at the Society of Human Resource Management (SHRM), emphasizes, it’s important to approach this transition with a level head. “First, breathe. These changes won’t happen overnight,” she advises. While incoming leaders often have ambitious plans for their first 100 days, significant shifts in federal workplace policies are unlikely to materialize immediately.

Understanding the Impact of Leadership

The pace at which a new administration can implement changes depends heavily on the makeup of Congress. For example, if former President Trump returns to office while Democrats maintain a slim majority in the Senate, the confirmation process for key nominees could be prolonged. Conversely, President Harris facing a Republican-majority Senate may encounter similar delays.

Even if the new president seeks to leverage executive authority to enact sweeping regulatory changes, they must juggle various priorities, including energy and education policies. This complexity makes it essential for HR leaders to stay informed and prepared.

What Should HR Do Now?

HR professionals should focus on identifying which regulations will likely have the most significant impact on their businesses. Monitoring potential changes in areas such as worker classification and minimum wage laws is essential, especially for organizations with large contract workforces.

It’s also wise to consider whether there are outdated regulations that could be revisited under a new administration, regardless of party affiliation. Dickens highlights that SHRM and its public affairs team actively track key legislative and regulatory developments that affect employers, providing valuable insights into upcoming changes.

Budgeting for the Future

As the regulatory landscape shifts, HR leaders should incorporate these potential changes into their budgeting plans. Understanding the costs associated with implementing existing regulations will help organizations prepare for possible changes that may arise in the next year or two, especially in relation to headcount and associated expenses for fiscal years 2025 and 2026.

HR teams can project costs based on previous workplace priorities from the Trump administration (2017–2021) or consider the initiatives President Harris may pursue if she continues President Biden’s policies. A notable example is the Department of Labor’s independent contractor rule. Planning for costs under differing interpretations of this rule will be crucial for effective budgeting.

The Local Impact

While federal elections undoubtedly affect workplace dynamics, Dickens stresses the importance of local and state elections, which often have a more immediate impact on daily operations. “What happens at the state level will affect your life more than events in Washington, D.C.,” she notes. Local leaders, such as mayors and governors, play a crucial role in shaping policies that influence day-to-day operations.

As HR prepares for the transition to a new administration, it’s vital to stay informed and adaptable. By understanding the regulatory landscape and its potential changes, HR professionals can ensure their organizations remain compliant and ready for whatever comes next.