How Is Compliance The Top Concern For HR?
Recruiting the right people and maintaining them at the workplace, managing cultural differences, and accurate pay benchmarking data are all challenges for HRs today. However, the biggest challenge they face is keeping up-to-date with the employment law requirements. In fact, apart from HRs, even senior finance executives find it challenging to keep up with such compliance. How HRs maintain and manage this challenge can decide upon an organization’s success or failure. In fact, many organizations today lack on standardized and integrated HR and payroll, which becomes a serious cause of compliance costs! To fight this, effective compliance with HR technology and employment laws is very important, and this can be brought about by hiring professionals like iDeal HR Service, a reputed and experienced statutory compliance consultant in Hosur.
The path to better compliance can be achieved by having everyone work in a standardized way with fewer tools, along with a system and infrastructure that is always up-to-date and relevant. This can be even better managed by an outsourcing partner as they can put in their skills and knowledge to harmonize payroll and HR administration across systems, tools, and cultures, along with ensuring compliance with rapidly changing laws. An experienced professional can handle all sorts of compliance requirements to keep an organization in conformance with all kinds of legal and regulatory changes. This can also stabilize costs, increase employee productivity, lower risk, and improve access to talent, while providing scalable solutions. On the other hand, having the expertise in-house to maintain and manage all these changes can be very complex and costly. Moreover, falling short in key areas of compliance can only put your business at a great disadvantage. So, instead of having in-house expertise, it is advisable to opt for outsourcing professionals to get the job done.
Here are the top compliance concerns that can be most likely faced by small businesses.
Not following compliance regulations and laws
Small businesses often see difficulties in following compliance regulations. The costs associated with such cases prove to be a burden because of the related overhead expenses. Poorly managed personnel-related tasks can lead to highly expensive compliance costs. Also, keeping up with all the new and changing regulations and laws can be intimidating. Tests need to be conducted, plan provisions must be applied, all required government filings must be completes, and required notices and documents must be provided to employees.
Lack of coordination of HR processes
The HR department works like an assembly line, where there is a complete system of lined-up processes. When there is any kind of inconsistency in this system, a lot of time is wasted in identifying and implementing a rectification. If different vendors are employed for payroll and benefits record-keeping, the business owner must understand the technicalities of the different systems to coordinate cooperation. He is the one responsible for ensuring that everything is coordinated and running efficiently.
Lack of quality HR guidance
In a small company, the HR department means a single individual who is responsible for a variety of HR tasks like staffing, labour relations, training, legal issues, HR management, and much more. All of these responsibilities put on a single individual may lead to errors. Even a small single mistake can lead to complexities and penalties. Thus, careful and quality Hr guidance must be provided by the entrepreneur along with proper training.
Not addressing potential workplace litigation
The two most common forms of workplace discrimination seen in small businesses today is racial and sexual discrimination. If these problems are not addressed, or if the employees are not disciplined, it opens the doors to wrongful termination lawsuit when the victim employee leaves the job. This could have the organization being sued, along with bearing legal costs and petitions that could go up to crores of rupees!