Compliance is a vital element in the success of any business, irrespective of its size. However, it is never an easily accomplished goal and that’s why HR professionals find it hard to ensure organizational compliance. It’s high time HR managers leveraged technology to make the most out of HR compliance software.
Though many companies are digitizing their recruiting & onboarding processes, they tend to ignore compliance due to its complexity. However, increased penalties for non-compliance emphasize the need for more effective HR compliance solutions. If you are still sticking on to traditional paper-based systems or struggling with excel spreadsheets, it’s time for a change!
Compliance manifests that all the laws and regulations set by the Federal/state governments are understood and followed. As everyone knows, the HR department is involved in a wide range of tasks from hiring and onboarding to ensuring good employee-employer relationships and improving employee retention. The HR department also has to ensure organizational compliance. Businesses need to be wary that failure to comply can bring them a bad reputation besides the hefty penalties.
HR compliance can have unintended positive effects and can affect aspects like employee retention. Though attaining compliance is essential, there are various challenges involved in the process of achieving it. Here are some of the compliance challenges organizations face and a few ways to overcome those.
The responsibility of HR teams starts from the task of bringing in new talent to the organization. Recruiting new hires is a reflection of organizational expansion. When it is never easy to bring in the right fit, the HR team should always see to it that the new hires aren’t just technically fit but are also in line with the organization’s culture. One mustn’t forget that the employee recruitment process should be free from any sort of discrimination.
Upon onboarding an employee, HR should then focus on the completion of Form I-9 within the 3-days rule. Immigration & Customs Enforcement (ICE) conducts random inspections to verify the I-9 compliance of the organizations. Those HR/employers who fail to complete the I-9s within the time specified are sure to invite penalties worth hundreds or thousands of dollars during these inspections.
If your organization recruits foreign nationals for work, then your HR is responsible for creating PAFs. HR should create a Public Access File upon filing the Labor Condition Application with DOL and is also responsible for the retention of the same. Form I-9 also comes with a retention period, and you are responsible for retaining these forms even for the terminated employees till a particular period.
Every organization should have an employee policy that clearly defines the procedures followed in the organization. HR can easily share this policy document with the new hires as it can guide them in understanding the organization better. The document also contains basic information about employee benefits, leaves, and other regulations. Most of the time, all these details are included in the Employee Handbook.
Every organization hiring employees for pay should follow FLSA's rules and regulations for paying minimum and overtime wages. However, a lot of employers are not aware of the penalties that may incur as of result of non-compliance with FLSA. Fair Labor Standards Act (FLSA) specifies the minimum/overtime wages to be paid for the employees. If your HR team fails to follow the wage and hour guidelines given by FLSA, you will run into some serious trouble.
One major challenge in attaining compliance is keeping up with ever-changing regulations. The Federal and State governments evolve their regulations continuously to address the growing issues. HR team finds it hard to keep up with these updates and ensure that all the requirements are met. If your organization policies aren't clearly defined, that would make it more challenging to comply with these ever-changing rules.
It won’t be wrong to state that your efforts to ensure organizational compliance are your first steps to improve your employee retention. Don't you think employees would like to work in an organization that provides a safe and professional environment free from any sort of discrimination? Invest in the compliance of your organization so that you don’t lose your valuable employees.
An HR compliance software can guide you through complicated processes and help you get rid of your compliance concerns. Though there are multiple HR compliance software available, selecting the wrong one can make things worse. Let us help you in staying compliant by becoming your compliance partner.
OnBlick HR bridges the gap between employers and regulatory compliance through guided processes. It eliminates human errors, assists in digital onboarding & employee verification using Electronic Form I-9, Integrated E-verify, auto-generated Public Access File, and Form I-983. OnBlick also helps businesses curb expenses with its cost-effective and efficient HR & I-9 audit services. Why wait? Switch to OnBlick and relieve your HR teams from the fear of non-compliance.