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How Can Your Business Close the HCM-Related Compliance Gap?

GapAs a business owner, how are you tackling HCM-related compliance?  Are you confident your organization has the right systems in place to keep up with an increasingly complex regulatory environment?

Your company probably has a process for how it handles paying employees, managing time and administering benefits, but making sure those processes are in compliance with the latest legal requirements adds an extra layer of complexity to running a business.  As regulations continue to change and evolve, it can be hard for organizations to keep up.  If your business isn’t making compliance a priority, the entire enterprise is at risk of receiving financial penalties or facing legal repercussions.

According to the results of a new study conducted by ADP and CFO Research of 161 senior finance and HR executives at mid- to-large sized employers, managing human capital management (HCM)-related compliance processes continues to be a significant challenge.  Many respondents cite new regulatory requirements (53 percent) and increased regulatory oversight and enforcement (45 percent) as two of the main factors that make HCM-related compliance management so difficult.

However, despite those challenges, 44 percent of respondents say their company uses multiple, separate systems for handling HCM-related compliance. That can come with a price tag: 78 percent of respondents say that they are forced to spend more money on HCM-related compliance due to the lack of integration between their existing HCM systems.

The research indicates businesses need a solution that can help them improve HCM-related compliance management and close existing gaps – currently, 57 percent of respondents say it takes more effort than it should to enter or update data in their HCM-related systems, and 80 percent of respondents believe making their HCM-related systems easier to use is important. Technology could be one way to help businesses keep up with moving compliance targets.

As a first step, business should consider taking an inventory of the systems that they’re using to manage HCM-related compliance activities.  Following that assessment, they should consider implementing a tool that can help them prioritize and organize these compliance activities across all core business operations (payroll, benefits, etc). Having a tool with a robust reporting and analytics function can also be an asset for providing valuable data that businesses can use as they evaluate operations and the bottom line.  Finally, businesses should make sure that the tool or system they use for helping them manage HCM-related compliance has the flexibility to adapt to changing legal requirements.

Additional details can be found in this infographic. For more information on ADP SmartCompliance®, please visit: http://www.adp.com/solutions/employer-services/smartcompliance.aspx.
 
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