Human Resources is swiftly evolving to meet changing workforce expectations, employee turnover, and cultural workplace challenges. Employees are the Tribe’s most valuable asset, representing the largest expense. How can Tribes effectively balance these factors moving forward? As we approach 2025, HR professionals must stay proactive by concentrating on the following key areas:
1. Employee Handbook Updates
Maintaining updated employee policies and procedures is crucial for any organization’s smooth and lawful operation. Regularly reviewing and revising these documents ensures that they remain relevant, effective, and compliant with evolving and relevant legal standards and organizational needs.
Keeping employee policies and procedures updated is fundamental to fostering a legally compliant, efficient, and positive workplace environment. It ensures that your Tribe can adapt to changes, manage risks effectively, and support employee growth and well-being. By prioritizing regular reviews and maintaining clear, transparent, and comprehensive policies, your Tribe can enhance operational success, protect sovereignty, and cultivate a thriving, engaged workforce.
2. Fair Labor Standards Act (FLSA) Changes
The Federal minimum wage remains unchanged at $7.25 per hour since July 2009. Although there have been ongoing legislative efforts to increase the Federal minimum wage, no changes have been enacted at the Federal level.
Currently, the salary threshold for overtime-eligible employees is $684 per week ($35,568 annually) or less.
It is essential to review all job classifications to ensure they are accurate. While there are no legal penalties for classifying a salaried position as hourly, doing so can result in financial consequences, such as paying overtime to employees who would not otherwise be eligible. Conversely, misclassifying hourly positions as salaried can lead to legal repercussions, including obligations to pay overtime wages, potential legal fees, back pay, and the risk of a Department of Labor audit. Proper classification helps mitigate these risks for your Tribe or Enterprise.
3. Compensation Considerations
As we start 2025, Tribes and their enterprises must strategically navigate the evolving landscape of employee compensation to attract, retain, and motivate talent effectively. Several key factors and trends are shaping compensation practices, driven by economic shifts, technological advancements, and changing employee expectations; not to mention the rural nature of many Tribes, which requires more data to ensure geographic compensation for comparison.
With fluctuating inflation rates, it is critical to regularly assess and adjust your compensation structure to ensure it is keeping pace with the rising cost of living. Failure to do so can lead to decreased employee purchasing power and increased turnover. Tribes should utilize regional cost of living indexes and other data to tailor compensation packages that reflect geographic differences, particularly in remote and rural environments.
In 2025, effective compensation strategies will be integral to your Tribe’s ability to attract, retain, and motivate talent in a competitive and dynamic workforce environment. By considering such factors as inflation, market competitiveness, pay equity, benefits, and performance incentives, HR professionals can develop robust compensation frameworks that support organizational goals and foster a motivated, satisfied, and loyal workforce.
4. Job Description Review
Regularly reviewing and updating job descriptions is a critical practice for any Tribe or enterprise aiming to maintain efficiency, compliance, and employee satisfaction. Job descriptions serve as foundational documents that define roles, responsibilities, and expectations within the workplace. Ensuring they are current and accurate is essential for various aspects of an organization’s success.
As Tribes and their enterprises evolve, their strategic goals and objectives change. By regularly updating job descriptions ensures that each role supports the current direction and priorities of the Tribe, reflecting any shifts in business focus or new strategic initiatives helps maintain the relevance of each position to the Tribe’s mission and vision.
Clear and accurate job descriptions help attract candidates who possess the necessary skills and qualifications, which improves the quality of hires. It also helps employees understand their roles, and responsibilities, and how their work contributes to the Tribe’s success, fostering a sense of purpose and direction.
5. Capacity and Capabilities Assessment
A capacity and capabilities assessment is a strategic evaluation process that helps Tribes understand their current strengths, weaknesses, resources, and potential for growth; especially given recent ARPA and grant funding. This assessment is crucial for effective planning, decision-making, and ensuring that the Tribe or enterprise can meet its goals and respond to ARPA and grant funding requirements.
By understanding the Tribe’s current capacity and capabilities, the Council and Boards can make informed decisions about future initiatives, resource allocation, and strategic priorities. Aligning organizational goals with available resources ensures that objectives are realistic, that roles and responsibilities are clear, and that skillsets align with strategic goals and vision.
Recognizing areas where the Tribe lacks the capacity or capabilities allows for targeted planning to bridge any gaps to ensure that the strategic goals are supported.
In 2025, HR professionals must adopt a more strategic role to drive the Tribe’s success. This includes updating the Employee Handbook, reviewing FLSA classifications, adjusting compensation to align with inflation and cost of living increases, refining job descriptions for greater clarity, and evaluating the current staff’s capacity and capabilities. By undertaking these initiatives, HR can effectively manage workplace complexities and foster sustainable growth, ensuring that the Tribe’s strategic goals are achieved.
Schedule a complimentary consultation with Blue Stone Strategy Partners to explore how we can help your Tribe address these HR challenges and build a thriving workforce. We can be reched by phone at (949) 476-8828 or by email at info@bluestonestrategy.com. Let’s work together to make 2025 a year of progress for you and your Tribal Community.