Business leaders and companies are gearing up for a second Trump administration, with President-elect Trump's victory potentially having a major impact on labor and employment laws.
Trump has pushed for deregulation at the federal level and pro-business economic policies on wages. He campaigned on eliminating federal taxes on tips and overtime pay and has also shown openness to a $15 minimum wage if it does not hurt small businesses.
The president-elect has enjoyed support from some union members, but he could roll back some pro-union policies that were instituted under President Biden.
Mattson Newell — the vice president of global delivery and channel partnerships at Culture Partners, a global management consulting firm — told Scripps News U.S. businesses see a cycle every couple of years, whether it be due to midterms or the presidential election, that brings forth changes of "policies and procedures."
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"Change is coming, and if you don't like the changes, just wait a couple of years because change will probably come back as well," Newell said. "While [presidents] do have an impact to change, it's not as far-reaching as some might think."
Still, Newell said CEOs of everything from Fortune 500 companies to small startups are now preparing for changes, and preparation for those changes is helped by what they've learned from how Trump's first administration affected the business sector.
"We're probably going to see more business deregulation. We're probably going to see policies that support businesses over unions. We're going to see increased tariffs. We might see some possible changes to the minimum wage," Newell said. "But what leaders need to keep in mind is that these policies and procedures in these laws can have an impact on their organization, and at the end of the day, it's their job to help clarify and connect their team to whatever externally is going on to what they can control internally."
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The changes the labor force will see during the second Trump administration will vary by industry — and probably by union. Newell said this is why it's important for CEOs and team leaders to interpret law changes or market trends with a focus on how these will impact their employees individually. This will lead them to more success if their team is led with "empathy and clarity," Newell told Scripps News.
To start on this path, Newell said business leaders need to focus on what they can control right now, but they also don't want to depend on the "wait-and-see" approach.
"You can see how the markets are reacting. You can see what's being put forward. So as CEOs today, what you need to be doing is being proactive and positive with how this is going to impact your organization and how you can adapt and succeed moving forward to achieve results," Newell said.
The full interview with Newell can be viewed above.
