Your human resources department is your company’s first line of defense against the risks and consequences of noncompliance. Your HR staff ensures that you operate within the federal and state laws and regulations in employing the top talent in your industry. They make sure your employees are treated fairly and within the scope of the law to keep your business out of hot water.
If your HR department is too small to fully support your company, they may find it challenging to keep up with the constant regulatory changes. This could leave you at risk of noncompliance and put the future of your company at risk. Thankfully, you can use this guide to learn the importance of avoiding HR compliance concerns – and discover ways to remain compliant.
Understanding Human Resources Compliance
When it comes to running your business in a legal and fair manner, there are many HR compliance rules and laws to keep in mind. Designed to create a beneficial workplace for all, employment regulations aim to prevent discrimination, sexual harassment, safety breaches and other concerns.
These laws ensure that everyone has a fair playing field in acquiring gainful employment and building their careers. They also help keep employees safe in their workplaces with strict guidelines for working conditions across all fields.
In response to societal needs, these regulations change frequently, requiring employers to do the same. If you do not adjust your HR operations to reflect these changes, you could end up at risk of noncompliance.
Consequences of Noncompliance
Failing to adhere to federal and state laws can result in serious consequences. Your business could face costly fines and even lawsuits as a result of sexual harassment or discrimination claims, for example. Safety breaches come with hefty monetary penalties as well, but can also result in criminal charges in severe cases. As instances of noncompliance arise, state and federal agencies may ramp up their scrutiny of your operations, resulting in even more fines. In some cases, noncompliance can even lead to the dissolution of your business.
Beyond the financial repercussions, your company’s reputation can take a serious hit with each instance of noncompliance. Your company could quickly lose its reputation as an employer of choice, resulting in a decline in qualified individuals willing to join your workforce. You will then find it difficult to attract and retain the talent you need to successfully run your business.
How a PEO Can Help
If HR compliance is a constant concern for your business, then it is time to make a change. You can partner with a professional employer organization, or PEO, to amplify the efficiency of your human resources operations.
At the start of your partnership, your preferred PEO can conduct a full HR audit to find the best level of service for your company. They can then provide the compliance tools and training needed to avoid common concerns. The compliance tools they may craft for your company include employee handbooks and workplace safety manuals.
Every step of the way, they will partner you with qualified HR professionals who work within current regulatory guidelines. Their continued training allows them to stay up to date with all the changes and apply them effectively to protect your company from noncompliance.
Take the Steps to Avoid Noncompliance in All Your HR Operations
You need an effective human resources department to avoid the risks and consequences of operating out of compliance. Making HR compliance a top priority will help protect your company from hits to its reputation and financial standing. It will also ensure that your prospective and current employees receive the right level of support and protection as they contribute to the success of your company. You can make HR compliance your priority by partnering with a trusted PEO like PRemployer. We can alleviate your concerns and help put your company on track for continued growth and success.