Businesses today face an increasing need for accountability, and regulatory compliance is a huge part of that conversation. But to many human resources professionals, organizational compliance seems to often end up in a stressful gray area. The Workforce Institute at Kronos Inc.'s new study called "The Risky Business Survey" unveiled some surprising concerns across a majority of HR departments that build anxiety and create unnecessary risk that might not stand up to an audit. It's this kind of anxiety that detracts from the departments' ability to build strong workforces and culture.
Outdated Systems Create Complications
Nearly 69% of survey respondents said their compliance systems were more than five years old. With the rapid pace of regulatory change across local, state and national levels, HR teams often struggle to compensate for their outdated systems. The cost of changing or updating systems may be a deterrent, but the cost of noncompliance is more than financial. Modern enterprise solutions like Kronos can help businesses keep up with the pace of top-line change through systematic updates and latest compliance tools at their fingertips always.
Recordkeeping is Often Duplicated or Fragmented
With many processes and solutions in play, even simple employee records can become a cumbersome compliance concern. This is especially the case when manual recordkeeping is still in use. Take timekeeping for example. If employees manually logging hours, how are managers making sure break and meal times are adhered to, and that hourly thresholds for benefits are respected? Having a consolidated employee record, such as a cloud-hosted management solution (e.g. Kronos), helps businesses validate their compliance and stands up to scrutiny in the event of an audit (whereas manual processes often require longer observance and could result in a penalty with just one error).
Ignorance is No Excuse for Noncompliance
Not knowing the current state of labor regulations at any point won't save businesses from scrutiny. Being accountable and having the tools in place to uphold the highest level of compliance can save a whole lot of headache for employees, managers and auditors alike.
There's comfort in compliance for human resources pros, managers and employees alike. There's also security in knowing your business can hold itself accountable and stand strong in any audit. Pressure for time and resources often results in shortcuts that create risk, but stronger, more current systems in place can help alleviate many of these pain points for HR pros. If you see an opportunity to improve your current workforce management configuration and strengthen your measures for compliance, our team is eager to help. Just get in touch!