Workplace policies and regulations are changing faster than ever, impacting every level of organizations — from executives to front-line employees. Technology, benefits, compliance, talent management, and caregiving responsibilities are reshaping how work is done and experienced. To stay competitive and resilient, everyone must understand these shifts and how they affect their roles.
SHRM seeks to serve as a trusted resource and advocate, providing research, guidance, and policy insights to help organizations navigate these changes, implement strategies effectively, and mitigate risk.
By leveraging SHRM’s resources, people can translate complex regulations and workforce trends into practical actions, foster inclusive workplaces, enhance employee well-being, and maintain operational and regulatory alignment — empowering employees and leadership to thrive in a rapidly evolving work environment.
Workplace Issue #1
Shifting AI Regulations, Ethics, and Workforce Transformation
The rapid integration of artificial intelligence and automation across HR and business operations is transforming how organizations recruit, evaluate, and manage employees while raising legal and compliance risks. Concerns around algorithmic bias, data transparency, and workplace surveillance are fueling a growing patchwork of state regulations. Additionally, workers continue to experience anxiety over AI displacement as organizations invest in these tools. Federally, policymakers are considering stronger oversight, including potential executive orders to pre-empt state laws and establish a unified framework.
AI-driven productivity shifts are redefining job classifications, wage structures, and skills demands, increasing pressure on organizations to invest in reskilling, clarify accountability for AI-assisted decisions, and update HR policies. Continuous workforce development is now a strategic priority as policymakers modernize training systems to help employees adapt to technology-driven roles. The tug-of-war between state and federal authority will continue to create complex compliance challenges, particularly as new AI-related scenarios collide with decades-old legal frameworks.
SHRM research has shown that 83% of employers believe the concept of a workday has shifted due to flexible work and technology, yet 74% said the Fair Labor Standards Act (FLSA) has not kept pace. These trends extend globally as AI-driven workforce transformation accelerates, reshaping HR practices and workforce development in multiple countries.
RESOURCE HUB
Artificial Intelligence in the Workplace Resource
Access up-to-date guidance, case studies, and compliance strategies for organizations navigating the evolving landscape of AI in HR. Use it to understand regulatory changes, manage risk, and ensure ethical, effective adoption of AI-driven workforce solutions.
83%
believe the concept of workday has shifted
74%
said FSLA has not kept pace
Workplace Issue #2
Escalating Costs and Design Complexity of Benefits
Health care inflation, expanded state mandates, and evolving federal reporting requirements are placing unprecedented pressures on employers, making benefits design and management increasingly complex. Organizations must balance affordability with competitiveness, particularly as they integrate digital health solutions, fertility benefits, and mental health programs. These challenges are magnified in a multi-generational workforce, where employees across six generations have differing needs, expectations, and preferences for benefits and workplace support.
The growing patchwork of compliance obligations — including coverage transparency, pharmacy benefit management, retirement plan rules, and paid-leave laws — requires organizations to adopt data-driven and inclusive strategies. As states continue to pass new benefits and leave legislation, often without uniform language, it will further complicate compliance for organizations operating across multiple jurisdictions. Employers must also navigate changes to federal tax credits, including newly available incentives and expiring provisions. This will directly impact benefits affordability, program design, and long-term strategic planning.
Organizations must monitor regulatory updates, communicate changes effectively, and ensure programs remain feasible to administer while supporting organizational goals. Clear education and communication are essential to employee engagement and morale, particularly when benefits are complex or evolving. Now is the time for organizations to advocate for flexible, tax-favored benefits and simplified regulatory frameworks, reducing administrative burden while meeting the diverse needs of a modern workforce.
SURVEY
2025 Employee Benefits Survey
Explore comprehensive benchmarking data and trend analysis to help you design competitive, cost-effective benefits packages. This survey highlights how organizations are adapting to rising costs, new mandates, and shifting employee expectations, informing smarter benefits decisions.
RESOURCE HUB
Total Rewards
Access practical tools, policy templates, and expert insights to simplify benefits administration and align your total rewards strategy with organizational goals. This hub supports effective communication, compliance, and employee engagement in a complex regulatory environment.
Organizations must monitor regulatory updates, communicate changes effectively, and ensure programs remain feasible to administer while supporting organizational goals.
Workplace Issue #3
Mounting Workforce Shortages, Talent Gaps, and Economic Pressures
In 2025, nearly 70% of organizations reported difficulty filling full-time positions, reflecting persistent labor shortages and widening skills gaps that challenge U.S. competitiveness and productivity. Demographic shifts — including an aging workforce and declining labor force participation — compound these pressures, while economic uncertainty and restrictive immigration policies constrain long-term workforce planning. Critical skills gaps limit capacity for innovation and strategic initiatives, weakening market position and employer brand.
Over a quarter of organizations (28%) reported that filling full-time positions required new skills; among them, nearly half (47%) were existing roles updated with new skills requirements. AI-driven workforce transformation is further accelerating the need for reskilling, while pathways to skilled global talent are narrowing due to immigration restrictions, H-1B visa policy changes, and expected work authorization delays. Domestic education-to-employment pipelines also remain insufficient, leaving gaps in the talent supply.
Organizations must invest in reskilling and upskilling as well as actively recruit and retain untapped talent, including military-connected talent such as veterans and military spouses, people ages 60 and older, workers with disabilities, people with criminal histories, and young people who are unemployed. Strengthening internships, mentoring programs, apprenticeships, and other workforce development programs can attract and retain qualified workers, mitigate talent shortages, and support long-term competitiveness — particularly in industries critical to U.S. economic and strategic priorities. A focused approach to untapped talent can expand the workforce and strengthen organizational resilience in a challenging labor market.
RESEARCH
2025 Talent Trends Report
Gain a forward-looking view of emerging talent challenges and opportunities. This report helps leaders anticipate workforce shifts, identify critical skill gaps, and shape proactive recruitment and retention strategies in a tightening labor market.
TOOLKIT
Skills-First at Work Toolkit
Leverage step-by-step guides and real-world examples for implementing skills-based hiring and development. This toolkit empowers organizations to tap into broader talent pools and address evolving skills needs more effectively.
Organizations reported:
70%
difficulty filling full positions
28%
filling full-time positions require new skills
Workplace Issue #4
Evolving Workforce Compliance in a New Legal Environment
Executive orders, recent Supreme Court rulings moving through the courts, shifting U.S. Equal Employment Opportunity Commission (EEOC) enforcement priorities, and state legislation are creating uncertainty around inclusion and diversity (I&D) initiatives and anti-discrimination practices. Employers are seeking guidance on building inclusive workplaces while mitigating legal and reputational risks. Clear direction is essential to harmonize anti-discrimination laws with organizational inclusion goals.
Though I&D remains a strategic priority, practices once considered lawful are now under heightened scrutiny. Organizations should closely monitor the U.S. Department of Justice’s implementation of the Strategic Enforcement Plan under Executive Order 14173, including potential expansion of the Civil Rights Fraud Initiative. At the same time, the U.S. Office of Federal Contract Compliance Programs is advancing proposed regulatory changes to the directives under its purview. The EEOC is expected to pursue more systemic litigation challenging the employment practices it believes to be in violation of the law and revising Pregnant Workers Fairness Act regulations and updated Harassment Guidance, signaling heightened compliance risk.
Organizations should audit policies, communicate clearly with employees, and stay informed on federal and state developments. Proactive monitoring, timely adjustments, and compliance-focused strategies are critical to reduce risk, maintain lawful practices, and advance inclusion objectives.
RESOURCE HUB
Inclusion & Diversity
Find policy guidance, compliance updates, and best practices for advancing inclusion while managing legal risk. This hub helps organizations harmonize diversity initiatives with evolving anti-discrimination laws and regulatory expectations.
TOOLKIT
SHRM's BEAM Framework
Utilize the BEAM Framework to build, evaluate, and advance your inclusion strategies. This toolkit offers practical templates and assessment tools to strengthen compliance and foster a culture of belonging.
Workplace Issue #5
The Pressing Future of Caregiving and Workforce Well-Being
Caregiving responsibilities — including elder care, child care, and support for family members who have disabilities — are placing an unprecedented strain on workers and employers alike. With limited public care infrastructure and inconsistent state and federal policies, organizations are increasingly expected to fill the gaps and provide the necessary support. This pressure due to caregiving needs contributes directly to absenteeism, turnover, disengagement, and early workforce exits, creating measurable impacts on productivity, operational costs, and organizational resilience. Fragmented leave laws and varied benefits requirements further amplify administrative and financial burdens, particularly for organizations operating across multiple jurisdictions.
SHRM research has shown that working caregivers experience significant challenges affecting their careers (38%), finances (53%), mental health (48%), and physical health (49%). In the absence of comprehensive care systems, employers must rethink benefits design, flexible work arrangements, and mental health supports to retain talent, manage costs, and meet the needs of a multi-generational workforce. Cultures that destigmatize caregiving and proactively communicate available resources are essential.
Organizations should also engage policymakers to advocate for a more robust care infrastructure, enabling more sustainable and inclusive workforce support. By aligning caregiving solutions with regulatory requirements, economic realities, and employee needs, organizations can enhance competitiveness, workforce stability, and long-term employee retention.
ARTICLE
Benefits and Beyond: Top Ways to Support Caregivers
Discover innovative benefits, flexible policies, and communication strategies that address the needs of working caregivers. This resource guides organizations in building a culture that values and supports caregiving employees.
TOOLKIT
Supporting Employees with Dependent and Elder Care Responsibilities Toolkit
Access actionable tools and policy templates for managing dependent and elder care challenges in the workplace. This toolkit enables organizations to navigate compliance, reduce absenteeism, and foster workforce stability.
Working caregivers experience significant challenges affecting:
- Finances (53%)
- Physical Health (49%)
- Mental Health (48%)
- Their Careers (38%)
CHRO/CEO Workplace Issue
Reshaping Workforce Policy Through Executive and Regulatory Actions
Forthcoming rulemakings — including changes to overtime thresholds, independent contractor definitions, joint employer standards, immigration, and global mobility — will fundamentally reshape employer obligations and risk exposure. These shifts carry operational and financial consequences because organizations must adapt payroll, classification, and benefits systems. They also affect long-term strategic planning for workforce structure, talent deployment, and benefits design.
Executive actions, including agency restructuring, regulatory shifts, federal investments, enforcement priorities, and potential executive orders, will further influence broader workforce trends, occasionally requiring rapid organizational responses despite typically delayed implementation timelines.
Proposed regulations expected in 2026 — particularly regarding worker classification and joint employer rules under the FLSA and fiduciary rules under the Employee Retirement Income Security Act — demand careful monitoring. Competing state-level actions may introduce additional complexity, particularly for organizations operating across multiple jurisdictions, amplifying compliance risk and administrative burden. Organizations must proactively assess potential impacts, develop contingency plans, and align operational policies to maintain workforce stability, mitigate liability, and preserve competitiveness.
Active engagement and advocacy by the employer community are essential to ensure regulations are clear, consistent, and practical. By participating in regulatory discussions, organizations can help shape policies that are achievable, balance operational feasibility with compliance requirements, and support innovation and sustainable workforce management in a rapidly evolving legal and regulatory landscape.
GUIDE
Executive Order Impact Zone
Stay informed with real-time analysis of executive actions and regulatory changes affecting workforce policy. This resource equips leaders to anticipate impacts, assess risk, and align strategies with new compliance requirements.
RESOURCE HUB
ESG, Ethics, & Compliance
Access expert guidance and practical frameworks for integrating ESG, ethics, and compliance into workforce strategy. This hub supports leaders in balancing regulatory demands with sustainable, responsible business practices.