As the inauguration approaches, it seems as if nearly everyone is talking about how President-elect Donald Trump and his administration will change the business climate, as well as human resources, in the U.S.
The following are three important areas to watch.
1. Immigration reform
Trump ran on a platform of stiff changes to immigration reform, but big changes might not benefit businesses, writes Paul Grossinger for Inc.
“One of the starkest challenges will be immigration reform and the threat that scrapping the H1-B and other visa programs for skilled foreign workers would have on growth startups,” he writes.
Such changes could lead to earlier merger and acquisitions, Grossinger writes, which means “cannibalization of talented little startups before they can reach any market-changing potential.”
That could hurt long-term innovation and tech growth for the nation as a whole.
“In addition, there will be a dramatic increase in both I-9 audits and raids by the U.S. Immigration and Customs Enforcement agency,” Schappel writes. “This means employers, who haven’t already, need to make sure their I-9 processes and documentation are in order — starting today.”
2. Employee benefits and pay
Trump’s philosophy for American businesses: “The more freedom employers have from government constraints, the easier it’ll be for them — and the economy — to grow,” Schappel writes.
So, don’t expect his administration to start imposing more requirements related to paid leave on employers. And, don’t expect the federal minimum wage to go up.
“Trump will put the issues of employment leave and the minimum wage on the back burner, and let the states decided what they want to do,” Schappel writes. “If he does anything, it’ll be rolling back some of the Obama administration’s moves to get federal employers and contractors to provide more paid leave.”
President-elect Trump wants to encourage American jobs and strengthen its economy — and he may do so by cracking down on trade, including either renegotiating or withdrawing from the North
American Free Trade Agreement. He’s also threatened to “declare China a currency manipulator to force negotiations for better trade terms,” according to Reuters for Fortune.com.
Some manufacturers are nervous about what that could mean for American exports, according to Reuters.
And, Trump’s crackdown on currency manipulation could create a trade war, according to Quartz.
“This could entail challenges before the World Trade Organization, retaliatory tariffs, and other penalties on big US companies doing business abroad — which is most of them,” according to Quartz, “and would hit the pocketbooks of the American people.”