{"id":413,"date":"2019-07-26T18:11:00","date_gmt":"2019-07-26T18:11:00","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/?post_type=chapter&#038;p=413"},"modified":"2024-04-24T23:18:31","modified_gmt":"2024-04-24T23:18:31","slug":"human-resources-today","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/chapter\/human-resources-today\/","title":{"raw":"Human Resources Today","rendered":"Human Resources Today"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Outcomes<\/h3>\r\n<ul>\r\n \t<li>Describe the role of human resources<\/li>\r\n \t<li>Discuss the trends shaping HRM<\/li>\r\n<\/ul>\r\n<\/div>\r\n<img class=\"alignright wp-image-568\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4056\/2019\/07\/30182810\/business-people-1572059_960_720-300x200.jpg\" alt=\"Four office workers sitting at their desks working on desktop computers under florescent lights.\" width=\"400\" height=\"267\" \/>At a macro level, the role of human resources is to ensure that an organization has the talent\u2014the right combination of skills, knowledge, aptitude and attitude\u2014to achieve its strategic goals. In addition, human resource management is responsible for developing people-related structures, policies and procedures. This process role includes ensuring compliance with internal policy\u2014for example, the policies outlined in an Employee Handbook and HR-related union contract provisions\u2014and relevant federal and state legislation such as the Equal Employment Opportunity Act, the Occupational Safety and Health Act and minimum wage laws. This compliance role can lead to a perception of human resource staff as \u201cenforcers.\u201d However, a more apt categorization is both guardian and champion, practicing and promoting the type of behavior that contributes to a healthy and productive culture. We will discuss these roles further in <a href=\"..\/chapter\/why-it-matters-corporate-social-responsibility\/\" target=\"_blank\" rel=\"noopener\">Module 15: Corporate Social Responsibility<\/a>.\r\n<div class=\"textbox tryit\">\r\n<h3>Practice Question<\/h3>\r\nhttps:\/\/assess.lumenlearning.com\/practice\/831082ea-417a-4bf4-a10f-b67334024f26\r\n\r\n<\/div>\r\n<h2>Trends in Human Resources Management<\/h2>\r\nThe trends shaping HRM are the trends shaping business in general. As we enter the next industrial age, a business\u2019s survival will largely depend on the ability of its human resource management to adapt the organization\u2014and transform itself\u2014to a new operating reality. Let's take a look at some of the macro trends shaping HRM today.\r\n<h3>Changes in Workforce Composition<\/h3>\r\nIn a <em>Wall Street Journal<\/em> briefing, advisory firm Deloitte observes, The \u201cflexible workforce\u201d\u2014crowd-sourced networks, outsourced teams, independent contractors, freelancers and gig workers\u2014\u201chas joined the mainstream,\u201d adding that the ability to \u201cmanage this diverse talent segment will become essential to business growth in the years ahead.\u201d[footnote]Volini, Erica, Jeff Schwartz and Indranil Roy. \"<a href=\"https:\/\/deloitte.wsj.com\/cfo\/2019\/06\/24\/creating-value-from-the-alternative-workforce\/?id=us:2sm:3tw:4wsj\" target=\"_blank\" rel=\"noopener\">Creating Value form the Alternative Workforce<\/a>.\" <em>The Wall Street Journal<\/em>. Accessed July 29, 2019.[\/footnote] Deloitte notes that the alternative workforce can be a long-term solution to tight labor markets\u2014driving business growth and extending workforce diversity\u2014if managed strategically; that is, if organizations adopt a source-blind approach to deploying talent and ensure that both alternative and traditional workers \u201cbe treated with respect with regard to culture, inclusion, and work assignments\u2014and that perceptions on all sides reflect these values.\u201d\r\n<h3>Increasing Workforce Diversity<\/h3>\r\nThe labor force is not only generationally diverse, it\u2019s becoming more racially and ethnically diverse, driven largely by immigration thanks to the U.S.\u2019s relatively low population growth and labor participation rate.\u00a0[footnote]Cohn, D'vera and Andrea Caumont. \"<a href=\"https:\/\/www.pewresearch.org\/fact-tank\/2016\/03\/31\/10-demographic-trends-that-are-shaping-the-u-s-and-the-world\/\" target=\"_blank\" rel=\"noopener\">10 Demographic Trends that are Shaping the U.S. and the World.<\/a>\" Pew Research Center. March 31, 2016. Accessed July 29, 2019.[\/footnote]\r\n<h3>Increased Employee Expectations of Employers<\/h3>\r\nGiven the tight labor market, employees are demanding a more personalized work experience, a more flexible, equitable and inclusive culture, and social advocacy on the part of employers. In their Global Talent Trends 2019 report, LinkedIn observed that \u201cEmployees expect more transparency, flexibility, and accountability from the companies that hope to attract and retain them.\u201d[footnote]Lobosco, Mark. \"<a href=\"https:\/\/business.linkedin.com\/talent-solutions\/blog\/trends-and-research\/2019\/global-recruiting-trends-2019\" target=\"_blank\" rel=\"noopener\">LinkedIn Report: These 4 Ideas are Shaping the Future of HR and Hiring.<\/a>\" LinkedIn Talent Blog. January 28, 2019. Accessed July 29, 2019.[\/footnote] We\u2019ll discuss these points further in future modules.\r\n<h3>Changes in Societal Expectations<\/h3>\r\n<img class=\"alignright wp-image-1426\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4056\/2019\/07\/13172317\/customer-1253483_1920-1024x683.jpg\" alt=\"Illustration of a person wearing a red shirt. They are labelled as a customer. Written around them are the words &quot;service,&quot; &quot;quality,&quot; &quot;efficiency,&quot; and &quot;reliability.&quot;\" width=\"400\" height=\"267\" \/>As Deloitte notes in their Human Capital Trends report, \u201cOrganizations are no longer assessed based only on traditional metrics such as financial performance, or even the quality of their products or services. Rather, organizations today are increasingly judged on the basis of their relationships with their workers, their customers, and their communities, as well as their impact on society at large\u2014transforming them from business enterprises into social enterprises.\u201d[footnote]\"<a href=\"https:\/\/www2.deloitte.com\/insights\/us\/en\/focus\/human-capital-trends\/2018.html\" target=\"_blank\" rel=\"noopener\">2018 Global Human Capital Trends<\/a>.\" Deloitte Insights. Accessed July 29, 2019.[\/footnote] We\u2019ll discuss this further in <a href=\"..\/chapter\/why-it-matters-corporate-social-responsibility\/\" target=\"_blank\" rel=\"noopener\">Module 15: Corporate Social Responsibility<\/a>.\r\n<h3>Infrastructural Obsolescence<\/h3>\r\nLabor market dynamics, employee expectations and technological changes will require fundamental changes in the organization\u2019s structure and culture and associated HR systems, policies and procedures. For perspective on the challenge, KPMG reports that 70% of human resource executives who participated in the advisory firm\u2019s 2019 Future of HR survey confirmed the need for workforce transformation. However, as noted in the Why It Matters section, only about a third (37%) indicated that they feel \u201cvery confident\u201d about HR\u2019s ability to effect this transformation.\r\n<h3>Changes in the Nature of Work<\/h3>\r\nAutomation is expected to significantly shift the division of labor between human and machine, changing job profiles and workforce planning, among other factors. As the World Economic Forum senior writer Sean Fleming phrases it: \u201cThe world of work is going through a period of arguably unprecedented change at the hands of machines; automation and artificial intelligence (AI) are the new kids on the employment block.\u201d In their 2019 Talent Trends Report, PwC refers to this trend as \u201cworkforce rebalancing,\u201d noting that \u201cjobs are being unbundled into tasks that could be offshored, automated, augmented with technology or rebundled into new roles as organisations analyse how work gets done.\u201d[footnote]\"<a href=\"https:\/\/www.pwc.com\/gx\/en\/ceo-survey\/2019\/Theme-assets\/reports\/talent-trends-report.pdf\" target=\"_blank\" rel=\"noopener\">Talent Trends 2019: Upskilling for a Digital World.<\/a>\" PwC. Accessed July 29, 2019.[\/footnote]\r\n<h3>Market and Industry 4.0<\/h3>\r\nMultiple recent studies have identified soft skills as a critical complement to functional skills related to automation and AI. Specifically, these studies identified people-oriented skills such as communication, empathy and leadership\u2014as well as an agile, continuous-learning mindset\u2014as essential to take full advantage of new technologies. This is particularly true given the rapid pace of technological change and the associated devaluation of skills.\r\n<h3>Changes in the Evaluation and Valuation of Talent<\/h3>\r\nAs mentioned above, the change in required skills and abilities will require human resource management to change policies, procedures and programs that define how candidates (internal and external) and employees are evaluated, compensated and developed.\r\n<h3>\u201cA Reskilling Imperative\u201d<\/h3>\r\nAs we will discuss further in <a href=\"..\/chapter\/why-it-matters-onboarding-training-and-developing-employees\/\" target=\"_blank\" rel=\"noopener\">Module 7: Onboarding, Training, and Development<\/a>, the skills gap has become mission critical, with 79% of CEOs viewing the lack of skills as a threat to their businesses. Indeed, with emerging trends and technologies accelerating skills obsolescence, re-skilling and upskilling will become the new normal. According to the World Economic Forum, 35% of the skills that workers need\u2014regardless of industry\u2014will have changed by 2020.\u201d To put that in perspective, the WEF projects that by 2022, more than 50% of employees will require significant re- and upskilling.[footnote]Kasriel, Stephanie. \"<a href=\"https:\/\/www.weforum.org\/agenda\/2017\/07\/skill-reskill-prepare-for-future-of-work\/\" target=\"_blank\" rel=\"noopener\">Skill, Re-Skill, and Re-skill Again. How to Keep Up with the Future of Work.<\/a>\" World Economic Forum. July 31, 2017. Accessed July 29, 2019.[\/footnote]\r\n<h3>Increasing Geopolitical Risks<\/h3>\r\n[caption id=\"attachment_566\" align=\"alignright\" width=\"350\"]<img class=\"wp-image-566\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4056\/2019\/07\/30181905\/800px-Kostin_Putin_Meng_20141002-300x185.jpeg\" alt=\"Three people in suits are sitting on a stage with microphones in front of them. Vladimir Putin sits in the middle and to the right sits Meng Wanzhou.\" width=\"350\" height=\"216\" \/> Huawei's CFO Meng Wanzhou, Vladimir Putin, and Andrei Kostin speaking at <i>Russia Calling!<\/i> investment forum.[\/caption]\r\n\r\nHR executives responding to WEF\u2019s The Future of Jobs survey cited increasing geopolitical volatility as \u201cthe greatest threat to employment and job creation at the global level.\u201d We\u2019ve seen this playing out over the last few years with tariff wars impacting global supply chains and markets. In September of 2018\u2014arguably before the Trump administration's tariff wars became intense\u2014the nonpartisan policy research organization The Cato Institute compiled a list of over 200 companies that had been negatively impacted by the administration\u2019s trade policies. The companies represent a cross-section of American businesses from start-ups to <em>Fortune<\/em> 500 companies, and industries including craft stores, distilleries, media, technology start-ups and manufacturers. One company profiled, Rhode Island yacht maker MGM Yachts, lost a $2.2 million sale to a Monaco buyer because of retaliatory tariffs. The company noted that the income from that one sale would have supported four families for a year. These examples are in addition to the record number of bankruptcy filings\u2014twice the number than during the Great Recession\u2014in states that account for approximately half of U.S. agriculture production.[footnote]Pacheco, Jackson. \"<a href=\"https:\/\/www.pastemagazine.com\/articles\/2019\/02\/trump-tariffs-are-proving-fatal-to-farmers.html\" target=\"_blank\" rel=\"noopener\">Trump's Tariffs Are Killing Farmers as Bankruptcies Soar<\/a>.\" <em>Paste Magazine<\/em>. February 11, 2019. Accessed July 29, 2019.[\/footnote] Diplomatic tensions have also impacted Chinese investment in American businesses. The <em>New York Times<\/em> reported Chinese direct investment \u201cplummeting by nearly 90 percent since President Trump took office,\u201d dropping from $46.5 billion in 2016 to $5.4 billion in 2018.[footnote]Rappeport, Alan. \"<a href=\"https:\/\/www.nytimes.com\/2019\/07\/21\/us\/politics\/china-investment-trade-war.html\" target=\"_blank\" rel=\"noopener\">Chinese Money in the U.S. Dries Up as Trade War Drags On.<\/a>\" The <em>New York Times<\/em>. July 21, 2019. Accessed July 29, 2019.[\/footnote]\r\n\r\nThe risk extends beyond economic impacts. In December 2018, Canada arrested Chinese technology firm Huawei\u2019s CFO Meng Wanzhou at the request of the U.S. Justice Department, which is seeking her extradition.[footnote]Bilefsky, Dan. \"<a href=\"https:\/\/www.nytimes.com\/2019\/05\/08\/world\/canada\/huawei-meng-wanzhou-extradition.html\" target=\"_blank\" rel=\"noopener\">Huawei Executive Gets New Bail Term: Staying in a $16 Million Home.<\/a>\" The <em>New York Times<\/em>. May 8, 2019. Accessed July 29, 2019.[\/footnote] Within days of Canada\u2019s decision to move forward with an extradition hearing, China detained two Canadians\u2014a former diplomat and an entrepreneur\u2014on charges of espionage.[footnote]Buckley, Chris and Catherine Porter. \"<a href=\"https:\/\/www.nytimes.com\/2019\/03\/04\/world\/asia\/china-canada-michael-kovrig-huawei.html?module=inline\" target=\"_blank\" rel=\"noopener\">China Accuses Two Canadians of Spying, Widening a Political Rift.<\/a>\" The <em>New York Times<\/em>. March 4, 2019. Accessed July 29, 2019.[\/footnote] As diplomatic tensions escalate, it appears that both American executives and Canadian citizens are being targeted as political pawns.\r\n<div class=\"textbox tryit\">\r\n<h3>Practice Question<\/h3>\r\nhttps:\/\/assess.lumenlearning.com\/practice\/33b1233c-25a4-42d5-bcfc-7523c78e56a4\r\n\r\n<\/div>\r\nAs Deloitte notes in their Human Capital Trends report, \u201cwe are witnessing seismic changes in the workforce, the workplace, and the technologies used in the world of work.\u201d[footnote]\"2018 Global Human Capital Trends.\" Deloitte Insights. Accessed July 29, 2019. [\/footnote] The upside, for those with a tolerance for uncertainty and risk, is the human resources profession has the opportunity to shape the future of the business, with significant human, organizational and, by extension, societal impacts.","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Outcomes<\/h3>\n<ul>\n<li>Describe the role of human resources<\/li>\n<li>Discuss the trends shaping HRM<\/li>\n<\/ul>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-568\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4056\/2019\/07\/30182810\/business-people-1572059_960_720-300x200.jpg\" alt=\"Four office workers sitting at their desks working on desktop computers under florescent lights.\" width=\"400\" height=\"267\" \/>At a macro level, the role of human resources is to ensure that an organization has the talent\u2014the right combination of skills, knowledge, aptitude and attitude\u2014to achieve its strategic goals. In addition, human resource management is responsible for developing people-related structures, policies and procedures. This process role includes ensuring compliance with internal policy\u2014for example, the policies outlined in an Employee Handbook and HR-related union contract provisions\u2014and relevant federal and state legislation such as the Equal Employment Opportunity Act, the Occupational Safety and Health Act and minimum wage laws. This compliance role can lead to a perception of human resource staff as \u201cenforcers.\u201d However, a more apt categorization is both guardian and champion, practicing and promoting the type of behavior that contributes to a healthy and productive culture. We will discuss these roles further in <a href=\"..\/chapter\/why-it-matters-corporate-social-responsibility\/\" target=\"_blank\" rel=\"noopener\">Module 15: Corporate Social Responsibility<\/a>.<\/p>\n<div class=\"textbox tryit\">\n<h3>Practice Question<\/h3>\n<p>\t<iframe id=\"assessment_practice_831082ea-417a-4bf4-a10f-b67334024f26\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/831082ea-417a-4bf4-a10f-b67334024f26?iframe_resize_id=assessment_practice_id_831082ea-417a-4bf4-a10f-b67334024f26\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe><\/p>\n<\/div>\n<h2>Trends in Human Resources Management<\/h2>\n<p>The trends shaping HRM are the trends shaping business in general. As we enter the next industrial age, a business\u2019s survival will largely depend on the ability of its human resource management to adapt the organization\u2014and transform itself\u2014to a new operating reality. Let&#8217;s take a look at some of the macro trends shaping HRM today.<\/p>\n<h3>Changes in Workforce Composition<\/h3>\n<p>In a <em>Wall Street Journal<\/em> briefing, advisory firm Deloitte observes, The \u201cflexible workforce\u201d\u2014crowd-sourced networks, outsourced teams, independent contractors, freelancers and gig workers\u2014\u201chas joined the mainstream,\u201d adding that the ability to \u201cmanage this diverse talent segment will become essential to business growth in the years ahead.\u201d<a class=\"footnote\" title=\"Volini, Erica, Jeff Schwartz and Indranil Roy. &quot;Creating Value form the Alternative Workforce.&quot; The Wall Street Journal. Accessed July 29, 2019.\" id=\"return-footnote-413-1\" href=\"#footnote-413-1\" aria-label=\"Footnote 1\"><sup class=\"footnote\">[1]<\/sup><\/a> Deloitte notes that the alternative workforce can be a long-term solution to tight labor markets\u2014driving business growth and extending workforce diversity\u2014if managed strategically; that is, if organizations adopt a source-blind approach to deploying talent and ensure that both alternative and traditional workers \u201cbe treated with respect with regard to culture, inclusion, and work assignments\u2014and that perceptions on all sides reflect these values.\u201d<\/p>\n<h3>Increasing Workforce Diversity<\/h3>\n<p>The labor force is not only generationally diverse, it\u2019s becoming more racially and ethnically diverse, driven largely by immigration thanks to the U.S.\u2019s relatively low population growth and labor participation rate.\u00a0<a class=\"footnote\" title=\"Cohn, D'vera and Andrea Caumont. &quot;10 Demographic Trends that are Shaping the U.S. and the World.&quot; Pew Research Center. March 31, 2016. Accessed July 29, 2019.\" id=\"return-footnote-413-2\" href=\"#footnote-413-2\" aria-label=\"Footnote 2\"><sup class=\"footnote\">[2]<\/sup><\/a><\/p>\n<h3>Increased Employee Expectations of Employers<\/h3>\n<p>Given the tight labor market, employees are demanding a more personalized work experience, a more flexible, equitable and inclusive culture, and social advocacy on the part of employers. In their Global Talent Trends 2019 report, LinkedIn observed that \u201cEmployees expect more transparency, flexibility, and accountability from the companies that hope to attract and retain them.\u201d<a class=\"footnote\" title=\"Lobosco, Mark. &quot;LinkedIn Report: These 4 Ideas are Shaping the Future of HR and Hiring.&quot; LinkedIn Talent Blog. January 28, 2019. Accessed July 29, 2019.\" id=\"return-footnote-413-3\" href=\"#footnote-413-3\" aria-label=\"Footnote 3\"><sup class=\"footnote\">[3]<\/sup><\/a> We\u2019ll discuss these points further in future modules.<\/p>\n<h3>Changes in Societal Expectations<\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-1426\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4056\/2019\/07\/13172317\/customer-1253483_1920-1024x683.jpg\" alt=\"Illustration of a person wearing a red shirt. They are labelled as a customer. Written around them are the words &quot;service,&quot; &quot;quality,&quot; &quot;efficiency,&quot; and &quot;reliability.&quot;\" width=\"400\" height=\"267\" \/>As Deloitte notes in their Human Capital Trends report, \u201cOrganizations are no longer assessed based only on traditional metrics such as financial performance, or even the quality of their products or services. Rather, organizations today are increasingly judged on the basis of their relationships with their workers, their customers, and their communities, as well as their impact on society at large\u2014transforming them from business enterprises into social enterprises.\u201d<a class=\"footnote\" title=\"&quot;2018 Global Human Capital Trends.&quot; Deloitte Insights. Accessed July 29, 2019.\" id=\"return-footnote-413-4\" href=\"#footnote-413-4\" aria-label=\"Footnote 4\"><sup class=\"footnote\">[4]<\/sup><\/a> We\u2019ll discuss this further in <a href=\"..\/chapter\/why-it-matters-corporate-social-responsibility\/\" target=\"_blank\" rel=\"noopener\">Module 15: Corporate Social Responsibility<\/a>.<\/p>\n<h3>Infrastructural Obsolescence<\/h3>\n<p>Labor market dynamics, employee expectations and technological changes will require fundamental changes in the organization\u2019s structure and culture and associated HR systems, policies and procedures. For perspective on the challenge, KPMG reports that 70% of human resource executives who participated in the advisory firm\u2019s 2019 Future of HR survey confirmed the need for workforce transformation. However, as noted in the Why It Matters section, only about a third (37%) indicated that they feel \u201cvery confident\u201d about HR\u2019s ability to effect this transformation.<\/p>\n<h3>Changes in the Nature of Work<\/h3>\n<p>Automation is expected to significantly shift the division of labor between human and machine, changing job profiles and workforce planning, among other factors. As the World Economic Forum senior writer Sean Fleming phrases it: \u201cThe world of work is going through a period of arguably unprecedented change at the hands of machines; automation and artificial intelligence (AI) are the new kids on the employment block.\u201d In their 2019 Talent Trends Report, PwC refers to this trend as \u201cworkforce rebalancing,\u201d noting that \u201cjobs are being unbundled into tasks that could be offshored, automated, augmented with technology or rebundled into new roles as organisations analyse how work gets done.\u201d<a class=\"footnote\" title=\"&quot;Talent Trends 2019: Upskilling for a Digital World.&quot; PwC. Accessed July 29, 2019.\" id=\"return-footnote-413-5\" href=\"#footnote-413-5\" aria-label=\"Footnote 5\"><sup class=\"footnote\">[5]<\/sup><\/a><\/p>\n<h3>Market and Industry 4.0<\/h3>\n<p>Multiple recent studies have identified soft skills as a critical complement to functional skills related to automation and AI. Specifically, these studies identified people-oriented skills such as communication, empathy and leadership\u2014as well as an agile, continuous-learning mindset\u2014as essential to take full advantage of new technologies. This is particularly true given the rapid pace of technological change and the associated devaluation of skills.<\/p>\n<h3>Changes in the Evaluation and Valuation of Talent<\/h3>\n<p>As mentioned above, the change in required skills and abilities will require human resource management to change policies, procedures and programs that define how candidates (internal and external) and employees are evaluated, compensated and developed.<\/p>\n<h3>\u201cA Reskilling Imperative\u201d<\/h3>\n<p>As we will discuss further in <a href=\"..\/chapter\/why-it-matters-onboarding-training-and-developing-employees\/\" target=\"_blank\" rel=\"noopener\">Module 7: Onboarding, Training, and Development<\/a>, the skills gap has become mission critical, with 79% of CEOs viewing the lack of skills as a threat to their businesses. Indeed, with emerging trends and technologies accelerating skills obsolescence, re-skilling and upskilling will become the new normal. According to the World Economic Forum, 35% of the skills that workers need\u2014regardless of industry\u2014will have changed by 2020.\u201d To put that in perspective, the WEF projects that by 2022, more than 50% of employees will require significant re- and upskilling.<a class=\"footnote\" title=\"Kasriel, Stephanie. &quot;Skill, Re-Skill, and Re-skill Again. How to Keep Up with the Future of Work.&quot; World Economic Forum. July 31, 2017. Accessed July 29, 2019.\" id=\"return-footnote-413-6\" href=\"#footnote-413-6\" aria-label=\"Footnote 6\"><sup class=\"footnote\">[6]<\/sup><\/a><\/p>\n<h3>Increasing Geopolitical Risks<\/h3>\n<div id=\"attachment_566\" style=\"width: 360px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-566\" class=\"wp-image-566\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4056\/2019\/07\/30181905\/800px-Kostin_Putin_Meng_20141002-300x185.jpeg\" alt=\"Three people in suits are sitting on a stage with microphones in front of them. Vladimir Putin sits in the middle and to the right sits Meng Wanzhou.\" width=\"350\" height=\"216\" \/><\/p>\n<p id=\"caption-attachment-566\" class=\"wp-caption-text\">Huawei&#8217;s CFO Meng Wanzhou, Vladimir Putin, and Andrei Kostin speaking at <i>Russia Calling!<\/i> investment forum.<\/p>\n<\/div>\n<p>HR executives responding to WEF\u2019s The Future of Jobs survey cited increasing geopolitical volatility as \u201cthe greatest threat to employment and job creation at the global level.\u201d We\u2019ve seen this playing out over the last few years with tariff wars impacting global supply chains and markets. In September of 2018\u2014arguably before the Trump administration&#8217;s tariff wars became intense\u2014the nonpartisan policy research organization The Cato Institute compiled a list of over 200 companies that had been negatively impacted by the administration\u2019s trade policies. The companies represent a cross-section of American businesses from start-ups to <em>Fortune<\/em> 500 companies, and industries including craft stores, distilleries, media, technology start-ups and manufacturers. One company profiled, Rhode Island yacht maker MGM Yachts, lost a $2.2 million sale to a Monaco buyer because of retaliatory tariffs. The company noted that the income from that one sale would have supported four families for a year. These examples are in addition to the record number of bankruptcy filings\u2014twice the number than during the Great Recession\u2014in states that account for approximately half of U.S. agriculture production.<a class=\"footnote\" title=\"Pacheco, Jackson. &quot;Trump's Tariffs Are Killing Farmers as Bankruptcies Soar.&quot; Paste Magazine. February 11, 2019. Accessed July 29, 2019.\" id=\"return-footnote-413-7\" href=\"#footnote-413-7\" aria-label=\"Footnote 7\"><sup class=\"footnote\">[7]<\/sup><\/a> Diplomatic tensions have also impacted Chinese investment in American businesses. The <em>New York Times<\/em> reported Chinese direct investment \u201cplummeting by nearly 90 percent since President Trump took office,\u201d dropping from $46.5 billion in 2016 to $5.4 billion in 2018.<a class=\"footnote\" title=\"Rappeport, Alan. &quot;Chinese Money in the U.S. Dries Up as Trade War Drags On.&quot; The New York Times. July 21, 2019. Accessed July 29, 2019.\" id=\"return-footnote-413-8\" href=\"#footnote-413-8\" aria-label=\"Footnote 8\"><sup class=\"footnote\">[8]<\/sup><\/a><\/p>\n<p>The risk extends beyond economic impacts. In December 2018, Canada arrested Chinese technology firm Huawei\u2019s CFO Meng Wanzhou at the request of the U.S. Justice Department, which is seeking her extradition.<a class=\"footnote\" title=\"Bilefsky, Dan. &quot;Huawei Executive Gets New Bail Term: Staying in a $16 Million Home.&quot; The New York Times. May 8, 2019. Accessed July 29, 2019.\" id=\"return-footnote-413-9\" href=\"#footnote-413-9\" aria-label=\"Footnote 9\"><sup class=\"footnote\">[9]<\/sup><\/a> Within days of Canada\u2019s decision to move forward with an extradition hearing, China detained two Canadians\u2014a former diplomat and an entrepreneur\u2014on charges of espionage.<a class=\"footnote\" title=\"Buckley, Chris and Catherine Porter. &quot;China Accuses Two Canadians of Spying, Widening a Political Rift.&quot; The New York Times. March 4, 2019. Accessed July 29, 2019.\" id=\"return-footnote-413-10\" href=\"#footnote-413-10\" aria-label=\"Footnote 10\"><sup class=\"footnote\">[10]<\/sup><\/a> As diplomatic tensions escalate, it appears that both American executives and Canadian citizens are being targeted as political pawns.<\/p>\n<div class=\"textbox tryit\">\n<h3>Practice Question<\/h3>\n<p>\t<iframe id=\"assessment_practice_33b1233c-25a4-42d5-bcfc-7523c78e56a4\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/33b1233c-25a4-42d5-bcfc-7523c78e56a4?iframe_resize_id=assessment_practice_id_33b1233c-25a4-42d5-bcfc-7523c78e56a4\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe><\/p>\n<\/div>\n<p>As Deloitte notes in their Human Capital Trends report, \u201cwe are witnessing seismic changes in the workforce, the workplace, and the technologies used in the world of work.\u201d<a class=\"footnote\" title=\"&quot;2018 Global Human Capital Trends.&quot; Deloitte Insights. Accessed July 29, 2019.\" id=\"return-footnote-413-11\" href=\"#footnote-413-11\" aria-label=\"Footnote 11\"><sup class=\"footnote\">[11]<\/sup><\/a> The upside, for those with a tolerance for uncertainty and risk, is the human resources profession has the opportunity to shape the future of the business, with significant human, organizational and, by extension, societal impacts.<\/p>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-413\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Human Resources Today. <strong>Authored by<\/strong>: Nina Burokas. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>Kostin Putin Meng 20141002. <strong>Authored by<\/strong>: Kremlin.ru. <strong>Provided by<\/strong>: Wikimedia Commons. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/commons.wikimedia.org\/wiki\/File:Kostin_Putin_Meng_20141002.jpeg\">https:\/\/commons.wikimedia.org\/wiki\/File:Kostin_Putin_Meng_20141002.jpeg<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><li>Untitled. <strong>Authored by<\/strong>: sigre. <strong>Provided by<\/strong>: Pixabay. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/pixabay.com\/bg\/photos\/%D0%B1%D0%B8%D0%B7%D0%BD%D0%B5%D1%81-%D1%85%D0%BE%D1%80%D0%B0-%D0%BA%D0%BE%D0%BC%D0%BF%D0%B0%D0%BD%D0%B8%D1%8F%D1%82%D0%B0-%D0%BE%D1%84%D0%B8%D1%81-%D0%B1%D0%B8%D0%B7%D0%BD%D0%B5%D1%81-1572059\/\">https:\/\/pixabay.com\/bg\/photos\/%D0%B1%D0%B8%D0%B7%D0%BD%D0%B5%D1%81-%D1%85%D0%BE%D1%80%D0%B0-%D0%BA%D0%BE%D0%BC%D0%BF%D0%B0%D0%BD%D0%B8%D1%8F%D1%82%D0%B0-%D0%BE%D1%84%D0%B8%D1%81-%D0%B1%D0%B8%D0%B7%D0%BD%D0%B5%D1%81-1572059\/<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/about\/cc0\">CC0: No Rights Reserved<\/a><\/em>. <strong>License Terms<\/strong>: Pixabay License<\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Specific attribution<\/div><ul class=\"citation-list\"><li>Customer Expectation. <strong>Authored by<\/strong>: Gerd Altmann. <strong>Provided by<\/strong>: Pixabay. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/pixabay.com\/illustrations\/customer-expectation-service-1253483\/\">https:\/\/pixabay.com\/illustrations\/customer-expectation-service-1253483\/<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/about\/cc0\">CC0: No Rights Reserved<\/a><\/em>. <strong>License Terms<\/strong>: Pixabay License<\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section><hr class=\"before-footnotes clear\" \/><div class=\"footnotes\"><ol><li id=\"footnote-413-1\">Volini, Erica, Jeff Schwartz and Indranil Roy. \"<a href=\"https:\/\/deloitte.wsj.com\/cfo\/2019\/06\/24\/creating-value-from-the-alternative-workforce\/?id=us:2sm:3tw:4wsj\" target=\"_blank\" rel=\"noopener\">Creating Value form the Alternative Workforce<\/a>.\" <em>The Wall Street Journal<\/em>. Accessed July 29, 2019. <a href=\"#return-footnote-413-1\" class=\"return-footnote\" aria-label=\"Return to footnote 1\">&crarr;<\/a><\/li><li id=\"footnote-413-2\">Cohn, D'vera and Andrea Caumont. \"<a href=\"https:\/\/www.pewresearch.org\/fact-tank\/2016\/03\/31\/10-demographic-trends-that-are-shaping-the-u-s-and-the-world\/\" target=\"_blank\" rel=\"noopener\">10 Demographic Trends that are Shaping the U.S. and the World.<\/a>\" Pew Research Center. March 31, 2016. Accessed July 29, 2019. <a href=\"#return-footnote-413-2\" class=\"return-footnote\" aria-label=\"Return to footnote 2\">&crarr;<\/a><\/li><li id=\"footnote-413-3\">Lobosco, Mark. \"<a href=\"https:\/\/business.linkedin.com\/talent-solutions\/blog\/trends-and-research\/2019\/global-recruiting-trends-2019\" target=\"_blank\" rel=\"noopener\">LinkedIn Report: These 4 Ideas are Shaping the Future of HR and Hiring.<\/a>\" LinkedIn Talent Blog. January 28, 2019. Accessed July 29, 2019. <a href=\"#return-footnote-413-3\" class=\"return-footnote\" aria-label=\"Return to footnote 3\">&crarr;<\/a><\/li><li id=\"footnote-413-4\">\"<a href=\"https:\/\/www2.deloitte.com\/insights\/us\/en\/focus\/human-capital-trends\/2018.html\" target=\"_blank\" rel=\"noopener\">2018 Global Human Capital Trends<\/a>.\" Deloitte Insights. Accessed July 29, 2019. <a href=\"#return-footnote-413-4\" class=\"return-footnote\" aria-label=\"Return to footnote 4\">&crarr;<\/a><\/li><li id=\"footnote-413-5\">\"<a href=\"https:\/\/www.pwc.com\/gx\/en\/ceo-survey\/2019\/Theme-assets\/reports\/talent-trends-report.pdf\" target=\"_blank\" rel=\"noopener\">Talent Trends 2019: Upskilling for a Digital World.<\/a>\" PwC. Accessed July 29, 2019. <a href=\"#return-footnote-413-5\" class=\"return-footnote\" aria-label=\"Return to footnote 5\">&crarr;<\/a><\/li><li id=\"footnote-413-6\">Kasriel, Stephanie. \"<a href=\"https:\/\/www.weforum.org\/agenda\/2017\/07\/skill-reskill-prepare-for-future-of-work\/\" target=\"_blank\" rel=\"noopener\">Skill, Re-Skill, and Re-skill Again. How to Keep Up with the Future of Work.<\/a>\" World Economic Forum. July 31, 2017. Accessed July 29, 2019. <a href=\"#return-footnote-413-6\" class=\"return-footnote\" aria-label=\"Return to footnote 6\">&crarr;<\/a><\/li><li id=\"footnote-413-7\">Pacheco, Jackson. \"<a href=\"https:\/\/www.pastemagazine.com\/articles\/2019\/02\/trump-tariffs-are-proving-fatal-to-farmers.html\" target=\"_blank\" rel=\"noopener\">Trump's Tariffs Are Killing Farmers as Bankruptcies Soar<\/a>.\" <em>Paste Magazine<\/em>. February 11, 2019. Accessed July 29, 2019. <a href=\"#return-footnote-413-7\" class=\"return-footnote\" aria-label=\"Return to footnote 7\">&crarr;<\/a><\/li><li id=\"footnote-413-8\">Rappeport, Alan. \"<a href=\"https:\/\/www.nytimes.com\/2019\/07\/21\/us\/politics\/china-investment-trade-war.html\" target=\"_blank\" rel=\"noopener\">Chinese Money in the U.S. Dries Up as Trade War Drags On.<\/a>\" The <em>New York Times<\/em>. July 21, 2019. Accessed July 29, 2019. <a href=\"#return-footnote-413-8\" class=\"return-footnote\" aria-label=\"Return to footnote 8\">&crarr;<\/a><\/li><li id=\"footnote-413-9\">Bilefsky, Dan. \"<a href=\"https:\/\/www.nytimes.com\/2019\/05\/08\/world\/canada\/huawei-meng-wanzhou-extradition.html\" target=\"_blank\" rel=\"noopener\">Huawei Executive Gets New Bail Term: Staying in a $16 Million Home.<\/a>\" The <em>New York Times<\/em>. May 8, 2019. Accessed July 29, 2019. <a href=\"#return-footnote-413-9\" class=\"return-footnote\" aria-label=\"Return to footnote 9\">&crarr;<\/a><\/li><li id=\"footnote-413-10\">Buckley, Chris and Catherine Porter. \"<a href=\"https:\/\/www.nytimes.com\/2019\/03\/04\/world\/asia\/china-canada-michael-kovrig-huawei.html?module=inline\" target=\"_blank\" rel=\"noopener\">China Accuses Two Canadians of Spying, Widening a Political Rift.<\/a>\" The <em>New York Times<\/em>. March 4, 2019. Accessed July 29, 2019. <a href=\"#return-footnote-413-10\" class=\"return-footnote\" aria-label=\"Return to footnote 10\">&crarr;<\/a><\/li><li id=\"footnote-413-11\">\"2018 Global Human Capital Trends.\" Deloitte Insights. Accessed July 29, 2019.  <a href=\"#return-footnote-413-11\" class=\"return-footnote\" aria-label=\"Return to footnote 11\">&crarr;<\/a><\/li><\/ol><\/div>","protected":false},"author":17,"menu_order":3,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Human Resources Today\",\"author\":\"Nina Burokas\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Kostin Putin Meng 20141002\",\"author\":\"Kremlin.ru\",\"organization\":\"Wikimedia Commons\",\"url\":\"https:\/\/commons.wikimedia.org\/wiki\/File:Kostin_Putin_Meng_20141002.jpeg\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Untitled\",\"author\":\"sigre\",\"organization\":\"Pixabay\",\"url\":\"https:\/\/pixabay.com\/bg\/photos\/%D0%B1%D0%B8%D0%B7%D0%BD%D0%B5%D1%81-%D1%85%D0%BE%D1%80%D0%B0-%D0%BA%D0%BE%D0%BC%D0%BF%D0%B0%D0%BD%D0%B8%D1%8F%D1%82%D0%B0-%D0%BE%D1%84%D0%B8%D1%81-%D0%B1%D0%B8%D0%B7%D0%BD%D0%B5%D1%81-1572059\/\",\"project\":\"\",\"license\":\"cc0\",\"license_terms\":\"Pixabay License\"},{\"type\":\"cc-attribution\",\"description\":\"Customer Expectation\",\"author\":\"Gerd Altmann\",\"organization\":\"Pixabay\",\"url\":\"https:\/\/pixabay.com\/illustrations\/customer-expectation-service-1253483\/\",\"project\":\"\",\"license\":\"cc0\",\"license_terms\":\"Pixabay License\"}]","CANDELA_OUTCOMES_GUID":"92f59cdb-7e06-419a-b428-8c6ddef3e41b, 09826d02-bc7e-4734-ac27-27b222e9bb8f, 75e31f83-9791-4c32-b33e-1632e9e252ea","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-413","chapter","type-chapter","status-publish","hentry"],"part":403,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/413","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/users\/17"}],"version-history":[{"count":18,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/413\/revisions"}],"predecessor-version":[{"id":3286,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/413\/revisions\/3286"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/parts\/403"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/413\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/media?parent=413"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapter-type?post=413"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/contributor?post=413"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/license?post=413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}