There's no question that compliance with regulations is viewed as important by both employers and employees. Adhering to local, state and national labor laws and quickly adapting to changes is crucial, but it doesn't come cheap. In a recent study called "The $100,000 Bill," Kronos found that more than half of surveyed HR professionals say the cost of adapting to each new regulatory change ranges from $40,000 to $100,000 on average. And although many businesses could manage better with 120-150 days to react, regulations can take effect as quick as 60-90 days. This rapid pace of change puts increasing tension on employers to keep pace and mitigate any additional costs from falling into noncompliance. There are three ways
Train Staff and Optimize Internal Resources
Many businesses find that having outdated workforce management solutions puts them in a position of added stress when they cannot easily accommodate new legislation. Surveying internal systems, resources in charge of enacting change and communications strategies in place can paint a good picture of how prepared a business is for regulatory change. Upgrading solutions, setting clear communications goals and investing in training for internal resources can help bring businesses up to compliance speed.
Workforce Management Solutions Vendors
Providers of workforce solutions can be knowledgeable resources for keeping all systems in check. Cloud-based solutions present some advantages, as frequent, automatic update deployments can keep many features up to regulatory par. Vendors should ideally be aware of the latest national developments, but local and regional legislation may require deeper digging on their part to help configure the strongest solution set.
Engage Third-Party Workforce Consultants
Here's where we come in! While businesses' employees may require frequent training to stay on top of compliance changes in addition to their regular responsibilities, workforce solutions consultants like The WFC Group come ready to provide strategies and oversight for workforce compliance. Being so closely involved in implementing and upgrading solutions, our team is poised to identify necessary changes to meet the latest regulation requirements, and we can advise on any risk factors in advance of pending future changes.
Staying on top of compliance—while costly—does protect businesses from greater penalties from incidents involving regulatory neglect. It's important to find the solution that best suits a business's best capabilities now and for future changes. Shifting off of outdated systems, supporting an internal compliance specialist, or speaking with vendors or third-party consultants are a great place to start.