HR and Compliance Simplified (2024)

FAQs

HR and Compliance Simplified? ›

HR compliance means adhering to all applicable labor laws. The larger your organization and the more geographic regions you operate in, the more regulations you must comply with.

Often, within a company, the bulk of the compliance work falls under the human resources (HR) umbrella. HR professionals are responsible for understanding which compliances must be met. They are also responsible for communicating those needs and developing ways for employees to meet them.

HR compliance is the process of building policies and procedures that ensure your organization follows up-to-date labor and employment laws and regulations. Not only does HR work to align workplace policies with the local and federal laws, but they also enforce the procedures to ensure all employees follow them.

The foundation of a strong HR function in any company, human resources operations focuses on maintaining regulatory compliance. This is the pillar in which policies and procedures are developed, an employee handbook is created, and mandated posters and other materials are provided to employees.

An HR compliance checklist is a systematically organized checklist that provides a list of tasks that need to be completed. Human resource specialists use it to prepare for an HR audit.

Manage all core HR departmental areas, including employee relations, HR admin, learning and development, internal recruitment, employee engagement, and maintaining and improving HR systems. b. To be responsible for recruitment, selection, on-boarding, appraisals, off- boarding.

There are five typical HR functions: talent management, compensation and benefits, training and development, compliance, and worker safety. The different areas of HR have a lot of crossover between different HR duties and other departments.

Many employees see compliance as a ball and chain around their neck. Instead, leadership should explain how compliance helps build a safe working environment for everyone. They can also emphasize how it contributes to creating a responsible, profitable business.

To have a working HR governance structure in place helps to align human resources management with an organization's overall strategy and its vision, mission, and values; to treat employees fairly, consistently, and in compliance with the law; to identify best practices; and finally also to control expenses and risks.

What is HR risk and compliance? ›

HR compliance risk assessment helps businesses evaluate and mitigate HR-related risks, including legal compliance with labour laws, equal employment opportunity laws, immigration laws, data privacy laws, benefits and compensation, employee leave laws, and harassment and discrimination laws.

An HR compliance audit is an important tool for all businesses to ensure the company's practices are in alignment with employment laws. As it lets you accurately evaluate your business' leave structure, disability structure, health and safety, HR policies, payroll, etc.

This begins with new employee orien- tation where HRM explains the rules of the workplace and the compliance officer explains the role and operation of the com- pliance program. Both should be address- ing compliance with governing laws and regulations.

Statutory Compliance: Your business must comply with government laws, or statutes, that regulate the workplace. Statutory compliance in HR includes areas like minimum wage, employment taxes, equal opportunity employment, insurance, and other federal and state mandates.

Compliance has traditionally been HR's main focus and area of responsibility. HR is expected to ensure the company meets all legalities concerning employee treatment while making sure employees understand workplace handbooks, codes of contact, and similar issues.

The compliance department ensures that a business adheres to external rules and internal controls. In the financial services sector, compliance departments work to meet key regulatory objectives to protect investors and ensure that markets are fair, efficient and transparent.

The ultimate goal of an HR compliance audit is to ensure an organization's adherence to laws and regulations, minimize legal liabilities, and foster a fair, equitable, and respectful work environment.

The role of HR in compliance and risk management involves developing and enforcing company policies, conducting training programs, monitoring compliance, managing employee relations, and collaborating with other departments to ensure that compliance strategies are integrated into all aspects of the business.

HR is important because it helps employers recruit in-demand talent and create safe, inclusive workplaces where employees can be their most productive. In addition, many HR responsibilities, such as payroll and regulatory compliance, are essential to avoiding costly violations.