Human resources (HR) plays a key role in the success of an organization, including working towards compliance efforts. In the workplace, human resources compliance refers to the process of defining and implementing training, policies, and procedures to help employees better understand and comply with all applicable laws and regulations. HR compliance applies to most employment-related laws, such as equal employment, anti-discrimination, and medical leave.
Changes over the last year have many employers concerned about remaining in compliance with changing federal laws and guidelines. Here is a look at some key trends and considerations that are currently driving the future of HR compliance:
HR Compliance Challenges Shaping the Future Of Work
Challenges in HR compliance are quickly shaping the future of work. The COVID-19 pandemic put significant stress on businesses in all industries, as well as their workforce. This economic crisis also altered employee expectations in many areas, such as remote work, paid leave, and well-being.
There has also been a lot of discussion regarding employers’ rights and responsibilities. Since these concerns remain unresolved at a federal level, many states are establishing new laws that put excess stress on HR professionals. Struggles also come in the form of compliance automation through new HR solutions.
Payroll And Other Tax Implications Of Having A Decentralized Workplace
Labor centralization has remained a traditional work model for centuries. Under this model, employees work together in a specified location. However, advancements in technology have enabled work to be completed away from physical workplaces, resulting in tax implications and issues with payroll.
Taxation can become complex when employees are spread across borders, whether across state lines or even globally. The more that a workforce is scattered, the challenge to ensure that tax liabilities remain met becomes more complex. This can lead to tax obligations in two more locations, as well as payroll withholding obligations in the country where the employee resides.
Leveraging Workforce Data Through HR Tech Investment
Technology has changed the way that HR handles workforce data. According to the Boston Consulting Group, more than $12 million in venture capital went toward the HR technology market in 2021. However, despite the large array of tools available to HR professionals, it is important to choose the right tools to achieve optimal effectiveness.
Businesses are gaining a better understanding of how to leverage workforce data by investing in the right HR technology.
The Evolution Of Worker Expectations And A Demand For Flexibility
What workers want in a job has changed drastically over the last decade. Today, employees want to work for businesses that possess a great culture that they can feel like they are a part of and that aligns with their values. Many workers also seek greater flexibility in the workplace with opportunities like remote work and paid time off.
Many employers are attracting a new talent pool by meeting worker expectations. According to a Gartner survey of business leaders in finance, legal, real estate, and HR, 82 percent said they would allow some remote work to continue after COVID.
Meeting The Needs Of Current And Prospective Employees
Understanding the unique needs of employees and taking the necessary steps to meet these needs is critical for company productivity, morale, and overall success. There are several benefits of meeting employee needs, such as a happier and more motivated staff, a healthier workforce that misses fewer days of work, higher employee retention, increased productivity, positive employee reviews, and better customer service. It is not only important to meet the needs of current employees, but to also anticipate what prospective employees are looking for and to find ways to deliver.
Considering Employer And Business Needs
Employment laws fall into several categories and companies are required to create HR processes for each area. Businesses must also adapt their policies as their workforce grows to remain compliant. These policies should be communicated in the employee handbook, as well as to employees during HR compliance training.
To create and execute a successful HR compliance strategy, employers and corporate leaders should take into consideration topics like discrimination, wages and working hours, immigration, employee leave, benefits administration, safety, and union rights.
Key Elements Of Consideration For The Future
From data security to pay transparency, businesses must learn the best ways to minimize their risks and stay ahead of the curve. When creating their strategies for HR compliance, there are many areas that companies should consider, including:
- Recruiting and hiring
- Employment laws
- Workplace policies and procedures
- New healthcare regulations
- Keeping up with local and state mandates
- Worker demands and expectations
- Increased focus on diversity, equity, and inclusion (DEI)
When it comes to compliance, organizations must also consider privacy and security. Today, people expect greater control of their data and businesses must take the initiative to implement comprehensive privacy programs for HR data that will keep this information safe.
Prepare To Adapt To Employee Demands And The Evolving Regulatory Landscape
The needs of employees continue to evolve, especially since the onset of the COVID-19 pandemic. Many workers are now seeing permanent hybrid and remote work opportunities, and due to a more competitive job market, employees are in a position to demand more flexibility from their employers.
Employers must use caution when determining the best way to incorporate new features into their employees’ existing benefits offerings to ensure that they are compliant with changing laws and regulations.
There Is A Trend Of People And Purpose Driving Workplace Culture
Most business leaders understand that the diversity of people is what leads to strong teams and better outcomes for companies. Most products and services are intended to serve a wide range of communities, making diversity a must for companies to remain relevant. However, finding new ways to attract and retain a diverse pool of talent is not always easy.
Business leaders must have the ability to empower their employees and make them feel like part of the team. When employees feel valued and supported, they are more likely to contribute to the organization.
Data Continues To Be A Driving Trend In The World Of Work
Companies in nearly all industries depend heavily on data to operate smoothly on a daily basis. Today’s employers leverage workforce data to help them make important decisions regarding compliance issues. With access to the right data, business leaders can be more confident in their decisions and better meet the unique needs of their workforce.
Real-time data, in particular, is of significant importance when it comes to compliance. With access to timely insights into the workforce, employers can quickly alter their compliance needs and anticipate future compliance issues.
Identifying The Right Growth Partnerships For Success
Ever-changing employment laws and regulations make HR compliance increasingly complex. Many employers find themselves constantly revising their processes and altering their employee handbooks and other documents to maintain compliance and avoid costly penalties and lawsuits.
Partnering with professionals who possess extensive knowledge in these areas is key for long-term business success. The knowledgeable advisors at New City Insurance offer HR compliance services to ensure that your business remains compliant across a variety of critical compliance regulations.
To learn more details about HR benefits and compliance from an experienced consulting firm, contact New City Insurance today online or by calling 888.210.2765.