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A variety of developments will impact HR departments over the next year, ranging from laws and regulations to artificial intelligence and employee wellbeing. ADP compiled a list of 10 trends for organizations to watch going into the new year, including the following topics.

Talent is becoming more geographically diverse as remote work continues, and this has both positive and negative implications for employee wellbeing. The share of cross-metropolitan workers has grown to 31%, according to ADP.

"Remote work and the evolution of technology have made it possible for us to have about five to six different ways to communicate with each other at any given time,” said Jason Delserro, chief talent acquisition officer at ADP. “Sometimes, this is great, but it also means we are more connected than ever. This can greatly impact mental health and employee stress because work and life are now so integrated and intertwined. One of the best things leaders can do is help employees set boundaries that will give them more balance and ultimately result in better employee wellbeing."

More than half of employees say they are burned out, which is prompting employers to incorporate wellbeing technology into their benefits strategy, according to ADP.

Employers are also increasingly tapping into the skills and experience their employees and candidates bring to the table. These skills may have been acquired through military or volunteer experiences. Ninety-four percent of employers who use a skills-based hiring method agree it is more predictive of on-the-job success than resumes, said ADP.

“Employers may also want to evaluate the language of their job postings if they want to lean into a skills-based approach to hiring,” said Tiffany Davis, chief inclusion and diversity officer at ADP. “Are they using the descriptor 'degree preferred,' and, if so, why? Is a degree truly needed for the role? If not, why is it 'preferred?’”

Artificial intelligence is likely to play a major role in the operations of work during the next few years. Eighty-five percent of workers believe AI will impact their jobs in the next two to three years, with recruiters pointing to the value of AI to help them sift through resumes and screen candidates.

However, laws are emerging to ensure use of AI is fair and unbiased in hiring decisions.

"We expect to see more laws requiring employers to disclose the use of AI in employment decisions,” said Jason Albert, global chief privacy officer at ADP. “We should continue to monitor new legislation, comply with new laws on the development of AI systems and use AI effectively and responsibly at work."

Pay equity and pay transparency remain business priorities as pay gaps persist. Understanding pay data and benchmarking pay can help employers monitor pay equity issues and market competitiveness, said Meryl Gutterman, senior counsel at ADP.

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