Business leaders have a wide array of concerns, from managing their teams to creating a successful customer experience. Yet growth and profit can be compromised when companies fail to comply with state, federal, and local regulations. There are new and updated regulations on everything from employee healthcare benefits to worker classification, and the penalties for non-compliance can be steep, ranging from penalties and fines to the dissolution of your business. Here is a closer look at how your company can stay up to date on the latest regulatory issues.
Establishing a Compliance Program
Studies show that executives are increasingly concerned about staying up to date on compliance issues, and with good reason. With so much at risk, it's important for companies to think strategically about their compliance efforts. The reality, according to the Society for Human Resource Management, is that there's no "off the shelf" compliance program companies can roll out. Instead, programs must be tailored to the individual risk profiles, which can be impacted by where you do business, your industry, and your staffing strategies.
An employee handbook can serve as one element of such a tailored compliance program, while education and training are also essential for disseminating appropriate policy and compliance guidance throughout your organization.
Compliance Extends Beyond HR and the C-Suite
Compliance is a company-wide effort and it's important to ensure it is enforced throughout your company. While HR and company executives will primarily address compliance-related issues, certain elements of compliance may impact many of your staff. Consider regulatory guidelines on hiring. The US Equal Employment Opportunity Commission (EEOC) provides clear guidelines on hiring practices. If your management or team violates these during the interview or hiring process, it can result in expensive litigation.
Hire Knowledgeable Partners
Who will you enlist to help your business stay in compliance? There are numerous options, from internal HR staff to labor and employment lawyers. Many businesses are choosing to work with a larger HR partner that provides a range of integrated compliance services. Support may be provided at every level, from drafting a customized employee handbook to keeping you up to date on taxation and compensation issues, workplace safety, workers’ compensation, and healthcare regulations.
No matter what the subject, staying up to date with the latest laws and regulations is a must for business owners. Recent regulatory activity has or will soon impact compliance with overtime regulations, worker classification, and healthcare requirements. But monitoring a wide array of regulations that can impact your business can be daunting. The right business partner can assist you with knowing your regulatory environment, avoiding expensive fines, and freeing you to focus on running your business.