It was the fast moving political, economic and social changes of the early to mid 20th century that spurred the development of the human resource profession in America. War brought the need to hire and train new workers. Workplace disputes created unions and the need to negotiate on behalf of management. And equal protection laws created the need for compliance expertise.

This branching out of the HR profession into several disciplines continued into the late 20th century. Laws such as OSHA, ERISA, ADA and FMLA allowed HR pros to expand and sharpen their skills.

The start of the 21st century is promising to offer just as much opportunity for growth, if the HR profession is willing to embrace it.

Recommended For You

Today there are four major issues challenging the HR profession to expand its capabilities.  These issues include:

  • Expanding access to health care and retirement savings plans,

  • Addressing wealth and income inequality and,

  • Increasing the minimum wage.

How HR reacts to public policy initiatives that focus on these issues will determine if the profession becomes stagnant or continues to progress.

Will HR push forward or push back?

Expanding access to health care and retirement savings plans

According to the 2013 Census on health insurance coverage, about 54 percent of Americans have employer-provided health insurance. This number continues to decline as health insurance premiums rise. And the number of workers with access to a workplace retirement plan is just slightly higher than those with health insurance. This leaves a gap in coverage for a significant number of Americans. So significant is the gap that state governments and the federal government either have already passed laws or have laws pending to fill it.

Human resource professionals aren't exactly embracing this legislation. Many are critical of any changes to the status quo. Some HR pros are even going as far as recommending to the newly elected Congress the termination of any pending legislation addressing these issues. 

Addressing wealth and income inequality

Wealth and income inequality is an international issue that is receiving increasing attention.  This new focus on financial inequality started with the global recession of 2008 and reached fever pitch with the Occupy Wall Street movement.

The spotlight on wealth and income inequality continues today as featured in the 2014 edition of the highly regarded annual Credit Suisse Global Wealth Report.  According to the Suisse Report and other sources, the United States has one of the largest gaps between rich and poor in the developed world.

Much of this inequality is due to stock market performance, tax policies, job stability, debt, and demographics. And many HR pros may never consider the significant role they can play in addressing some of these drivers of wealth and income inequality.

For example, financial wellness programs can help workers address issues with debt. Job training, child and elder care, and other worker development programs can help with job stability issues. And revamped retirement plans that focus on outcomes can also help workers build wealth and lessen inequality.

Increasing the minimum wage

The federal minimum wage is $7.25 right now. The fact that it's unchanged since 2009 hints at the difficulty of making a change at the national level. Fortunately, several states and some cities have laws increasing the minimum wage in their jurisdiction. In today's political climate at the federal level, changes to the minimum wage may only be possible at the state and lower levels.

HR pros might be reluctant to suggest increasing workers' salaries to top management. And, again, they might not feel that this issue falls in their area of responsibility. However, every organization with a formal or informal salary management program needs to address minimum wage issues. An analysis of the impact of changes in the federal minimum wage, or state and local minimum wage is an opportunity for HR to show its analytical side. It's also an opportunity for HR to address the challenges of hiring and turnover.

The task of managing workers is as old as work itself. However, there wasn't always someone devoted solely to this task. The human resources management function developed over time to meet the evolving needs and wants of workers and employers. And as worker and employer needs and wants expand, so will the responsibilities of the human resources professional.

Today, workers and their employers grapple with a range of financial-related issues. HR professionals should seize this opportunity to find solutions to these challenges and continue its own development.

NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.