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Human Resources (HR) is one of the most fundamental departments in any company, regardless of scale or industry. HR compliance ensures that a company is protected for legal consequences due to poor record keeping, inaccurate reports, disgruntled employees and other incidents.

There are many laws that protect employees, and it is HR’s responsibility to ensure that these rules are upheld at all times. In a way, HR is a neutral department that acts in the best interest of company and worker. The ultimate role of an HR department is to ensure that a company is protected from litigation while employees are treated fairly and compensated appropriately for their work.

The Role of Compliance in HR

HR manages many different responsibilities including payroll, benefits and other forms of compensation that must be conducted according to a regulatory protocol. Failure to follow appropriate measures can result in massive lawsuits and penalties for a company. For example, the Employee Retirement Income Security Act’s (ERISA) provides guidelines for the reporting and disclosure of income.

As the ERISA changes, it’s vital that HR remains in-touch with the latest modifications to prevent any unjust treatment. Dozens of rules regarding health benefits, compensation and work protocol govern the HR department, and compliance within the division actively protects the security and longevity of an entire business.

How to Create Compliance

HR compliance is an ongoing process that should be continually monitored and enhanced. Hiring the right professionals is the first step, and there should be more than seasoned experts at the helm of the HR department. Companies need to strive to employ HR experts with younger employees whom can be mentored from hand picked talent; this will create long-term relationships within the company that will grow and evolve with time.

What’s more, a company should also provide ongoing training and education to ensure that its HR employees are always up-to-date on current standards, regulations and best practices. Employee compliance training ensures that important regulations are understood and enforced from the top down. Routine compliance audits will allow HR to identify weaknesses within its division and make appropriate changes.

Companies must be willing to invest in compliance and see it as both a standard and objective to continually be reached and improved upon. Through active communication and advancement opportunities, HR compliance can be thoroughly integrated into any organization.