The financial industry is no stranger to regulation, but credit unions have the added scrutiny of keeping operations pristine to secure its members' benefits (like lower service fees and higher interest rates). Getting smacked with a penalty for non-compliant labor practices won't do anyone any favors. Luckily, the latest wave of workforce management solutions help institutions streamline many standard, daily processes that would be prone to costly manual errors in the event of an audit.
Keeping Pace with Regulatory Change
The main challenge with labor compliance is simply how fast laws are changing, and many changes are still overdue. But institutions aren't alone in navigating the many tiers of regulation between national and local levels. Enterprise solutions providers, like our partners at Kronos Inc., keep their cloud-based solutions on the cusp of regulatory changes, especially on the national level. Consultants like The WFC Group can help make sure your workforce management configuration meets the standards of state and local governments too.
Here are just some sources of recent change affecting institutions everywhere, creating urgency for compliance updates:
- Federal Regulations: Fair Labor Standards Act (FLSA), Affordable Care Act, Family and Medical Leave Act (FMLA)
- State Laws: e.g. Minimum wage deviations
- Local Statutes
Automate and Centralize Employee Records
Maintaining clear employee records will go a long way to helping credit unions stay in the regulatory clear. That means minimizing manual processes prone to human error. Take timekeeping for example, which helps establish full-time and hourly workers entitled benefits. Any deviation (intentional or not) from legally determined break, meal or overtime requirements could put institutions at risk, and manual administrative processes may not hold true in an audit. Consolidating employee's many records and data streams into one system record and implementing automation for clocking in/out or in scheduling alerts for managers can help create a clear record that holds up to scrutiny (and spares auditors a lot of extra effort!)
Focus on People as your Strength
Employee and member alike can benefit from streamlined workforce processes. When your workers can steer their attention to serving customers over administrative tasks, operations are stronger (and depositors happier) for it. To read more about compliance risk, check out Kronos's recent article on CUInsight.com. And reach out to The WFC Group today if you'd like to implement automated workforce solutions to your advantage.