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Compliance Continuum: Optimized [Infographic]

On one end of the “Compliance Continuum” are companies that become so overwhelmed with managing employment-related tax and payment compliance that they choose to avoid it altogether. Companies in the middle of the continuum do just enough to get by and avoid penalties and fines. When companies choose to meet employment-related tax and payment compliance head on, however, they often realize the unexpected benefits that can be leveraged from this worthy pursuit.

Compliance Continuum - Optimized ImageA new survey released by ADP, in collaboration with CFO Research, found companies that invest in robust compliance programs are often rewarded for their efforts in areas not traditionally associated with compliance management, such as workplace morale.

In the survey, 59 percent of senior finance and HR executives surveyed say employment-related tax and payment compliance has a positive impact on employee productivity and operational efficiency. In fact, respondents say effective compliance has a positive impact on employee satisfaction (70 percent), employee engagement (63 percent) and corporate brand and reputation (55 percent).

All of these key metrics for the overall health of a business feed into what many would consider the most important metric – the bottom line – so it’s no surprise that half of respondents say employment-related tax and payment compliance has a positive impact on their company’s overall profitability.

When viewed through this lens, it becomes clear that when employment-related tax and payment compliance is treated as a priority, it begins working for a company rather than against it. Recognizing the unexpected benefits a robust compliance program can bring is one of the first steps toward implementing one.

The most frequently cited plans for improvement in employment-related tax and payment compliance involve improving existing technology and systems (51 percent), investing in new technology (39 percent), or improving collaboration between human resources and other functions (40 percent).

As a best practice, companies should consider being proactive about improving compliance management and should not be content with a compliance program that simply keeps them above water and contributes little or nothing to the bottom line, employee engagement and productivity, and corporate brand and reputation.

See the Compliance Continuum

Compliance Continuum image

See our previous infographic the Compliance Conundrum

Compliance Conundrum Image

ADP SmartComplianceSM is a cloud-based unified platform that helps ease the burden of key employment-related tax and payment compliance activities, virtually agnostic to your ERP, human resources or financial systems of record. For more insights and data, or to learn about ADP SmartCompliance, visit www.adp.com/smartcompliance.



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