Don't miss these best practices to elevate HR compliance from a cost center to a strategic asset.
When HR teams are able to look beyond day-to-day operational activities and compliance responsibilities, they can focus more on identifying and capitalising on opportunities to contribute to executive-level strategic business goals and to having a greater impact on employee wellness and engagement.
Raising the bar for HR compliance
Expecting more value from human resources in terms of business impact is nothing new. For instance, identifying tax credit and incentives opportunities to offset costs related to hiring or to business innovation and growth is one way that HR can lean into adding more value to the organisation. Another is innovating the company's approach to pay.
Digging deeper into tax credit opportunities
Companies claim tax credits when they file their income tax returns. Tax credit programs often require records that document fulfillment of the credit, so businesses need to plan for tax credit reporting requirements and calculations in advance and keep records to prove compliance.
Often, companies are too over-burdened to even identify tax credit opportunities for which they may be eligible, or they may lack efficient and effective processes to do so.
Embracing the future of pay and investing in employee financial wellness
When it comes to payroll and employee pay, it isn't just how much employees are paid but how they are able to access those funds that matters. According to a 2019 ADP survey, more than 60% of employee respondents said if an employer offered more pay delivery flexibility (e.g., the ability to select pay frequency, same day pay, or early access), it would make a difference in whether they would accept a job offer.
Consumer trends and demographic shifts are leading employees to expect convenient, flexible methods of pay tied to online and/or mobile tools. Those tools can also contribute to their financial wellness by providing visibility to spending habits and guidance on planning and budgeting.
These pay card/digital pay solutions can reduce cost and effort for employers while enhancing talent recruitment and employee retention—just another example where innovation and efficiency can go beyond cost savings to contribute to the strategic goals of the company.
HR compliance has always been important to any organisation, but today it is playing a bigger and bigger role. Its impact is expanding, and a growing number of executive members is allocating resources to taking HR compliance to the next level. Any organisation's strategic planning would suffer if HR compliance had not been fully considered.
