Being the backbone of any organizational structure, HR plays a fundamental role in creating a strong basis as well as formation of a sound structure in terms of employee wellbeing, management, change management etc.
Following are some of the major HR compliance issues organizations typically encounter:
1) Inability to Classify Employees
One of the major HR compliance concerns is the inability of the HR department to classify employees. Classifications are important to be able to determine the independent contractor and differentiate from with the employees of the organization.
2) Work out of workstation
With the feasibility of redefining the workplace by working from their home and telecommuting, things have been made a lot more convenient for both the employee and employer. However, this also brings some issues to HR compliance, complicating processes with the added difficulty of keeping track of all the work flooding in. Also, the time difference, in case some of the employees are working from a different state, makes it difficult to schedule tasks and be vigilant about deadlines.
3) Hours to count
Often, companies fail to determine the break periods of the employees during work hours, and if the wages are paid on hourly bases, this becomes a growing concern. In some organizations though, the break periods are included in work hours as well, Also the out of station employees and those on business trips telecommunicating could prove to be a concern and complicate HR compliance function.
4) Changes in Regulations
While it is already a tough job for HR to keep up with the changes within the organization, it is another thing to manage those outside their domain and control. When the compliance regulations experience a shift, drastic or mild, the HR department has to be on their toes with all the changes that are to be made within the organization and policies. To ensure your business remains compliant, it is crucial to get expert employment law advice.
5) Discrimination
Discrimination is inevitable when it comes to the management of a great number of people. Mid-sized and small organizations often overlook the efforts of some of the employees and tend to focus on the more revenue generating resources, which may result in high turnover for the same reason. In cases of discrimination, employees have been known to file lawsuits, which is not only detrimental to the organization’s reputation but also impedes HR functions in future.
6) Hiring Hiccups
The hiring procedure isn’t only a complicated and critical task for potential employees, but also for the employers. In case any personal or odd questions are asked by the HR personnel and the decision is against a person, he/she could file a lawsuit against the company of being rejected due to an invalid and unrelated reason such as marital status or demographic background.
The HR department needs to hire professionals who not only have a stellar academic background but also have good interpersonal skills and are likely to stay within HR compliance rules and regulations so that the company never faces concerns for this reason.