HR Compliance: A Guide for Business Owners

HR Compliance

A team member comes to you complaining about an inappropriate comment made by a colleague. You’re knee-deep in a project and don’t know the first thing about human resources complaints; what do you do?

Keep in mind that the wrong choice could result in the downfall of your company, too.

It’s a scary thought, isn’t it? That’s why it’s so important to have HR compliance guidelines in place so you can always protect your business and its employees.

To learn more about how an HR compliance team can help your business, make sure to keep reading!

Policy Structure and Enforcement

No matter what industry you’re in or how many employees you’re responsible for, your company must operate under a strict set of guidelines in accordance with the United States Department of Labor. Failing to incorporate or adhere to these guidelines can result in penalties ranging from fines to the closure of your business.

You’ll want to work with your team to create a guideline for HR compliance best practices. Your HR department should be well-versed in these regulations already, which in theory should expedite this process.

However, your team must update these guidelines whenever possible, so don’t think of this step as a set-it-and-forget-it type deal.

Employee Rights

Your employees have rights, ranging from workers’ compensation claims to protection from discrimination in the workplace. You owe it to your employees to create a fair, equal, and hate-free work environment, and strong human resource managers can help you do exactly that.

When you create a safe environment where your employees are free to be themselves, you’ll see productivity skyrocket. Ultimately, HR compliance services that specialize in employee rights represent a win-win.

That’s not to mention how these guidelines keep your business out of legal trouble. Not only could a lawsuit tank your business financially, but once you lose your reputation, it’s almost impossible to get it back.

The Solution: Outsource Your HR

It might seem strange, but don’t be so quick to dismiss outsourcing, as it can strengthen your business in some surprising ways.

For starters, you’ll save a ton of money. The average employee takes thousands of dollars to onboard when you account for materials, training, and so forth.

Likewise, outsourcing allows you to better manage your physical space. You won’t have to worry about another department taking up space in your office. This may allow you to rent a smaller, inexpensive office space or even move your team to all-remote operations, thus saving your business extra money.

Rest assured, you don’t have to lose out on great HR services. Instead, you’ll want to do what dozens of the world’s biggest companies do and hire a Professional Employment Organization (PEO).

We don’t have time to list all of the benefits of a peo but think of it as a way to get complete HR service at a fraction of the cost. You don’t have to sacrifice any quality, yet you’ll save a fortune!

Your Guide to HR Compliance

At the end of the day, HR compliance isn’t an option. It’s something that you’ll need to abide by or else you’re looking at some grave consequences.

Though the choice is up to you, remember that outsourcing is never a bad option. It’s affordable and provides your team with the peace of mind you need to do your best work.

For more tips on running your business smoothly, be sure to check out the rest of our business content.