Legal Compliance is music to the ears of Human Resources and, at the same time, can make an employer break into a cold sweat. I like to think of compliance in two broad categories: 1) Pro-active and affordable or 2) Reactive and expensive. I think you can guess which I would recommend.
Compliance is one of the simplest steps you can take toward building a great place to work. The right compliance plan starts with communication and training. Hanging employment law posters, conducting annual trainings with both managers and employees, and maintaining a well-written employee policy handbook build a solid foundation of pro-active compliance. Not only do those three steps send a clear message on where you stand, they also lay a foundation for managers when navigating employee issues. But you cannot stop there. It is important to remember that employment laws are always evolving so your approach to compliance must keep pace on both the federal and state level. Additional steps like annual audits, weekly updates from a trusted legal source, and keeping HR involved in your day-to-day decisions must be part of your pro-active plan.
With a pro-active plan, an employer has time to make well thought-out decisions that both align with legal requirements and make sense with their business model. Employment laws are in place to provide protection to employees and set clear expectations for employers. You need the right HR team to bring all of that together and maintain it.
Not taking compliance with employment laws seriously can result in several issues. On the monetary side, an employer may face fines by state or federal agencies, attorney’s fees, backpay, and lawsuit settlements. Those numbers can quickly reach into six figures. Governing agencies may also require regular audits, forced compliance, and mandated reporting. And then there is the potential damage to your personal brand and your company’s reputation. The fallout from non-compliance can have deep and painful consequences.
It takes everyone on the team working together to establish a successfully compliant organization. Managers must be trained and equipped to respond. Employees need to know what is expected and how to bring concerns forward. HR should be leading the effort through expertise. HR Managed can help. Let’s talk about how we can manage pro-active legal compliance in your workplace so you can manage your business.
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