Legitimate businesses of all sizes share at least one thing in common: the need to comply. But what compliance means to an organization isn’t universal.
With so many laws and rules emerging each year, it’s never a bad idea to step back and look at the big picture. In fact, evaluating your compliance strategy as you grow is key to long-term success.
Why should businesses care about HR compliance?
Maybe you’ve just formed an intimate team of experts or even struck gold and need to recruit hundreds of employees. Regardless, a business can’t do either confidently without understanding where it’s vulnerable and which laws affect it. For federal contractors, compliance makes or breaks their operations.
Every business needs to stay on top of:
- filing deadlines
- minimum wages
- health coverage requirements
- federal, local and industry-specific laws
- and more
Plus, audits force organizations to respond accurately and timely. Anything less risks setbacks like fines, penalties and other consequences.
How do small businesses ensure compliance?
The U.S. Census Bureau describes small businesses — companies with 100 or fewer employees — as a vital part of the economy. They do a lot with a little, but when every moving part makes a huge difference, noncompliance can derail success.
In addition to concerns over data privacy and document storage, small businesses also need to ensure they comply with the:
- Fair Labor Standards Act
- Occupational Safety and Health Act
- Consolidated Omnibus Budget Reconciliation Act
Self-service HR tech helps by connecting employees with their data and offloading tedious tasks from a small or even one-person HR team.
How do midsized companies ensure compliance?
Midsized companies — businesses with 100 to 999 employees — have more resources than smaller operations, but that doesn’t mean they enjoy fewer compliance concerns. In fact, one faulty process has the potential for huge consequences if it impacts every employee.
Consistency and accuracy, especially through onboarding and open enrollment, is crucial. Midsized companies should use HR tech to digitize important documents and respond to report requirements associated with the:
- S. Equal Employment Opportunity Commission
- Worker Adjustment and Retraining Notification Act
- Family Medical Leave Act
Ultimately, every business should automate HR processes where possible and take a proactive approach to its compliance.