All You Need to Know about the HR Function's Compliance Role

HR Tech Outlook | Wednesday, November 24, 2021

Fremont, CA: The human resources (HR) function is at the heart of most employers' efforts to identify, hire, and retain the people required to carry out their strategy and achieve their objectives. However, the HR function is also an important part of the organization's compliance structure.

There are numerous laws and regulations that govern the employment relationship that HR professionals must understand and navigate to help their organizations avoid costly fines and other penalties, including potential reputational harm.

HR compliance should be viewed as a process of defining individual and group behaviors to ensure that the organization follows the applicable laws and policies. The HR function must hire and retain employees who are knowledgeable about HR-specific laws and who can develop policies and procedures in accordance with these laws. Simply writing policies and procedures and storing them in a repository is insufficient. They must be effectively communicated throughout the organization once they have been established.

This is most likely to occur when HR compliance has been integrated into the organization's overall business strategy. The organization's leadership has taken steps to ensure that all employees understand the importance of HR compliance. Here are five fundamental principles that organizations should adhere to in order to achieve these objectives:

Recruiting the Right Talent – Hiring the right talent within the scope of the HR function's responsibilities is one of the most critical issues facing organizations today. The HR function must possess the necessary knowledge, skills, and experience or be able to obtain it through third-party relationships.

Education and Training – Human resource professionals must be well-versed in employment law and the regulatory/legal requirements that can affect an organization at any time. These laws and requirements are constantly changing, and it is critical for the HR function to stay up to date on the most recent information.

Creating an Employee Handbook and Updating It Regularly – One of the most important documents in any organization is its employee handbook. The employee handbook serves as a communication tool, outlining the organization's policies and procedures as well as how business should be conducted. Before distributing the handbook and any new policies and procedures, it is best practice to have legal counsel review them.


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