It is particularly challenging to run a company smoothly without having an HR compliance checklist. After all, it is a primary area of concern for HR departments and company executives. Before making an HR compliance list, or understanding how to manage them, let us first learn the basics.
What is HR Compliance?
It is a process where you define policies and procedures to ensure that your employment and work practices manifest a thorough understanding of applicable laws and regulations, keeping in mind the company’s larger human capital resources objectives.
Companies of all sizes face increasing HR complexities because of the rising employment laws and regulations. The risk of penalties for non-compliance has been more than ever now. When developing HR policies and procedures, business owners should know that a business may be subject to an audit from an enforcing company that may impose penalties and fines for non-compliance. However, a lawsuit settlement can perhaps bankrupt a company.
What is the role of HR in compliance?
Leaders of the HR department should bridge the gap between a company’s growth trajectory and principles. They need to make sure that efficient HR activities are integrated into business strategies. Compliance needs to start at the top and trickle down to all levels so that everyone in the company knows that the workplace should be kept safe, and discrimination of any kind won’t be tolerated.
Many business owners face demands on their time from all directions. Hence, they need to wear many hats- including one of a compliance officer. Ensuring HR compliance can be a mammoth task, but here are a few strategic HR compliance tips to get you started:
- Know the laws. HR laws change regularly. You need to be up-to-date with the existing laws so that you can create appropriate policies and communicate them to your staff.
- Seek good advice. Hire an HR staff with the experience and skills required for the implementation of HR activities effectively. If you can’t hire someone full time, it is advisable to contract with an HR consultant. Get an HR lawyer to work with your company as and when necessary.
- Create a policy of your HR activities manually and update it regularly. Make a handbook that meets your initial requirements and has space for new policies and procedures over time. You must always get your handbook reviewed by your lawyer before implementing any new policy.
- If you already have an existing compliance policy, you must conduct an internal HR audit of it to understand the strengths and weaknesses of your policy. If not sure, seek professional guidance or do your research on the enforcing government organization’s website.
- Everyone who is accountable for compliance in the company should be properly trained. Your managers have the most significant day-to-day interactions with the employees, hence you should review your policy manually with each manager. Make sure that they understand the objectives and implementations of HR activities and be role models for other staff members.
- Train your employees as well. Your compliance policy shouldn’t be something workers keep at the bottom of their drawers and forget. Inform them about every objective of the policy. Provide them with the updates of the manual and periodic retraining about important issues like exploitation and sexual harassment.
- Listen to your employees, your managers, and your internal as well as external experts. Together, they will help you identify the roots of compliance risks within your company, manage those risks effectively, and increase your awareness about what’s going on in the company.
- Let your staff know if they’re meeting the expectations of your compliance policy. Emphasize the importance of success and give them a chance to improve their weaknesses. Give emphasis to accountability and rub in the consequences of non-compliance.
- Memories fade over time. Therefore, it is better to document your HR activities. Moreover, lack of documentation can make your company vulnerable to HR non-compliance attacks. Document all critical decisions and employee evaluations, emphasize written policies, make sure everyone gets a written copy of it, and signs them, keep records of critical communications, and maintain all personal records. Remember, documentation is crucial.
Sounds like a lot? Not with Greenbox and Kriya. Get everything done productively with these smart process automation platforms without thinking twice. Once you understand your current practices thoroughly and identify gaps in the system that may lead to compliance issues, you can set up priorities and begin to strengthen your HR compliance activities