This is the era for switching your organizations from traditional paper-based systems to HR compliance software. Though companies are digitizing their recruiting & onboarding experiences, they are still ignoring compliance due to its complexity. One reason for this is the limited number of software available, and SMEs feel the ones available are very expensive.
Its time for a change!
Increased penalties for non-compliance are calling in a for a more effective HR compliance solution. Let's dig out a little deeper to understand compliance and the importance of staying compliant.
Every organization strives to be efficient and successful, but the other most important aspect is ignored all the way. That is staying compliant. Compliance is a way of stating that all the laws and regulations are understood and followed. Usually, these rules are set by the Federal/state governments. In simple terms, organizational compliance means ensuring that it is following all the rules and regulations set for the industry it is into. The HR department is the core of any organization. HR is the one who strengthens the relationship between employees and the organization and assuring HR compliance is the key player for organizational compliance.
"HR professionals are the absolute front line of defense for a company to make sure it treats people fairly, legally and keeps the business out of danger." - David Miller
The HR department handles a wide range of tasks, from hiring to employee retention, minimum wages to overtime pay, employee-employer relationship to employee retention. And thus, it is the intrinsic part of any organization.
Have you ever heard of the quote, "If you think compliance is expensive, try non-compliance" Isn't this single line enough to understand the importance of compliance? Unfortunately, some organizations still don't consider compliance as a high priority and are usually focused on being successful rather than complaint. But, they often seem to forget that even a successful organization can come down in case of compliance failure.
Whether you are a small organization or a large one, the importance of compliance doesn't alter. In fact, HR compliance plays a vital role in the organization's success and keeping your employees happy. Though attaining compliance is essential, there are various challenges involved in the process of attaining it. Here are some of the compliance challenges organizations face. Let's learn about them and understand the ways of overcoming these challenges.
HR responsibility starts from the task of bringing in new talent to the organization. Recruiting new hires is a way of stating the expansion of the organization. It is never easy to bring in the right fit, but the HR team should always look for the person who isn't just technically fit but also fits the organization culturally. And the employee recruitment process should be free from any sort of discrimination.
Upon the onboarding of 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. Most of the HR/employers failed to complete the I-9s within the time specified, which leads to hundreds and thousands of penalties during these inspections.
If your organization is the one that 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 hence HR is responsible for retaining the I-9s even for the terminated employees. Is your organization successful in retaining the I-9s of all your employees?
Be it, a start-up or an enterprise-level organization, it will have a specified business plan, mission, and vision. In the same way, 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, which can guide them in understanding the organization better. The policy document should also include basic information about employee benefits, leaves, and other regulations.
Every organization hiring employees for pay should follow FLSA's rules and regulations for paying minimum and overtime wages. Most of the employers are still 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. And any organization should thereby adhere to these regulations to stay compliant. If your HR team fails to follow the wage and hour guidelines given by FLSA, you could run into some serious problems.
One major challenge in attaining compliance is keeping up with ever-changing regulations. The Federal and State governments evolve their regulations continuously in order 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 earlier, that would make it more challenging to comply with these ever-changing rules.
If you are paving a way towards attaining compliance, then those 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? So, start working towards a compliant organization in order not to lose your valuable employees.
With the enormous rules and regulations, HRs are struggling with the process of attaining compliance. This is the reason why most HRs are now looking for an HR compliance software that can guide them through this complicated process. Though there are multiple HR compliance software available, selecting the right tool for the right job is the most important aspect leading to compliance. Finding it hard to do so? Let us help you.
OnBlick is a SaaS-based application that guides organizations in staying compliant. It assimilates dates from regulatory sources and suggests the appropriate SOC codes and wage levels to make sure that you are paying your employees right. Its electronic I-9 system helps employers in completing and retaining the Form I-9s of all their employees on time. Not just that, it also records the audit trail for all the HR activities, which provides you an easily accessible record of all the activities to ensure compliance.
It patent-worthy feature of 'Auto generate PAF' will help your organization in auto-creating the PAFs. With more such value-adding features, your HR team will be free from all the stress of attaining compliance.