HR Compliance: A Love and Hate Relationship

HR & Compliance: A Love and Hate Relationship


The HR department plays an integral role in an organisation especially when it comes to identifying, hiring and retaining top talents. Nevertheless, one of the most core functions of HR department is to look after the organisation’s compliance concerns, it can be anything such as statutory, legal, regulatory, etc.


Several regulations and laws govern the employment relationship that HR personnel ought to understand whilst ensuring that the company abides by these regulations to avoid costly penalties and other fines. A common example of such a law that regulates the employee-employer relationship is that of fair employment act, which governs the minimum wage and rights to the employees. Further, in several organisations, HR department manages the diverse employee benefit and compensation programs as well, which again are sternly regulated.


This is what makes HR and compliance a love and hate kinship. Read on to know in detail.


Accomplishing HR Compliance

Since we know that HR compliance is a must for any organisation to spearhead in today’s competitive and fierce business ecosystem. However, achieving as well as maintaining compliance can turn out to be an intangible goal for a company that fails to identify the challenges as well as fails to develop efficient strategy to tackle the challenges.


Businesses ought to hire as well as retain people that possess sound knowledge pertaining to HR specific regulations and laws, who can develop procedures and policies abiding these laws. Simply writing the procedures and policies won’t do the trick here, as these ought to be efficiently communicated across the organisation.


Here are five core principles that an organisation ought to preach for executing HR compliance:


  1. Recruiting the Best Talent: Recruiting the best talent for HR department for responsibilities such as talent management, employee benefits, compensation and legal requirements is one of the core necessities for businesses these days. HR personnel ought to have good knowledge, experience and skills besides boasting the ability to maintain third-party relationships as well.


  1. Apt Training & Education: All the talents in the HR department should be well-aware of the various employment laws and legal/regulatory requirements that can have impact on the business at any given point of time. Since these requirements and laws keep on fluctuating, it is important for HR professionals to stay abreast with all the changes.


  1. Employee Handbook: Yes, HR department ought to draft an employee handbook that is updated on a regular basis. Employee handbook is undoubtedly the most crucial document. It is a means of communication that ought to clearly express an organisation’s procedures and policies pertaining to code of conduct.


  1. Scheduled audits for HR compliance: Several HR departments are usually overtired. On the other hand, non-compliance can result in reputational and financial disasters for an organisation, which is certainly not affordable. Thus, conducting scheduled audits for HR compliance ought to be a core part of an organisation’s overall business strategy to avert legal hassles.


  1. Communicate: As HR department is one of the key departments in an organisation, it is imperative for HR managers and leaders to communicate and keep a tab on HR compliance risks well ahead of the time irrespective of whether the company is enduring from compliance problems or not.    


Following these steps will assist HR department to take a huge leap in achieving all its goals pertaining to maintaining HR compliance for the entire organisation.


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