HR Compliance Trends: What's New

Human resources professionals carry heavy loads. They oversee recruitment and staffing, handle employee relations, compensation and benefits, implement performance management initiatives and much more. Compliance also falls on HR's shoulders and it may be the most consequential part of the job.

Staying updated on the ever-shifting employment-related rules and requirements and industry standards can help organizations mitigate litigation, penalties, fines and the bad press that can result from non-compliance. It can also help businesses run safely and smoothly, and with fairness and compassion for employees. Here are some of the compliance trends you should be aware about to help your company stay on top of its compliance initiatives.

What Is HR Compliance?

HR compliance is a broad term that refers to managing business operations within the boundaries of employment laws, regulations, internal policies and the best business employment practices. Effective HR compliance helps with risk management, data protection and employment satisfaction. It plays a big part in an organization's success.

Emerging Shifts in Requirements

HR can never get complacent about HR compliance, in large part because of the constant changes and additions to the laws and society's expectations. A regular review schedule with an HR expert can help your company stay updated on HR compliance. Here are five shifts in requirements HR should consider focusing on right now.

Environmental, Social, and Governance (ESG)

ESG criteria can encourage responsible business practices and contribute to a positive impact on the world. Companies are implementing ESG initiatives in these ways: .

• Sustainability workplace efforts. These may include implementing eco-friendly internal initiatives and adding "green" jobs.
• Diversity, equity and inclusion (DEI) initiatives.
• Providing resources that support employees' health (especially their mental health).

Remote work policies

More people are working remotely than ever. Cities, states and the federal government are making policy updates on many issues that affect remote work, and HR must keep up and adjust accordingly. Companies that hire remote workers from other countries have another layer of regulations to consider. The rules may change on things like:

• Workers' compensation for work-related injuries sustained at home.
• Requirements for mandatory remote work.
• Rules giving workers the "right to disconnect" and not be on call constantly.
• Protecting data security and privacy in home offices.

Employment laws

Shifting regulations on protecting workers' rights and improving fair employment practices put this trend on our list. Examples of the changes include minimum wage increases (including at the city level), overtime adjustments, and a tighter rein on assigning correct job status under the Fair Labor Standards Act.

In addition, there's a closer watch on anti-discrimination laws, family leave policies and workplace safety practices.

Diversity, Equity, and Inclusion (DEI)

Companies of all sizes are striving to create a more inclusive workplace where every voice is welcomed and appreciated. Companies with DEI initiatives and programs should periodically audit their internal DEI initiatives, policies and programs to confirm compliance with relevant law. Failure to observe legal and compliance requirements applicable to DEI initiatives can adversely impact a company's reputation and recruiting efforts.

Technology Impacts

According to a study by Gartner, 46% of HR leaders plan to increase investment in HR technology, and tech advancements are having a dramatic effect on HR compliance. The creation of exciting new tools and software platforms is driving this trend.

Artificial intelligence (AI)

One of the most prominently discussed advancements affecting compliance requirements is the use of AI. The emerging technology can analyze company data to uncover potential patterns, while predictive analytics helps to identify potential concerns, so businesses can take steps to address them. This can help enhance and streamline review processes.

Data protection

The vast amount of information a company manages today is pushing new developments in data security. HR teams must bulk up security protocols to protect personal information as well as confidential information of the company. To prevent security incidents and maintain compliance standards, companies are setting strict cybersecurity protocols, securing data storage and managing access controls. Technology tools that securely automate and streamline these tasks build trust with employees and protect the company's reputation.

Process automation

AI developments are driving trends in this area, as well, through intelligent document processing (IDP). In a document-heavy field like HR compliance, IDP can help by automating pulling data from documents, then organizing, processing and analyzing it. Adding automation to HR processes offers several compelling benefits. It can help:

• Increase the accuracy of compliance-related tasks by reducing the chances of human data entry errors in employee records and other documentation.
• Streamline processes, saving on time and costs.
• Proactively mitigate risk with increased efficiency in tasks like automated payroll and time tracking.
• Decrease repetitive tasks, giving HR more time to stay updated and focused on top priorities.

Best Practices for HR Compliance

Staying on top of compliance trends and implementing them into your policies is easier said than done. Keeping track of your organization's compliance takes considerable strategic planning. Here are some tips for handling it effectively.

Fully document policies

Create written policies that outline HR's compliance procedures. This approach will help provide clarity and keep efforts consistent across the board. Maintain detailed policy documents with expectations and update them regularly as laws and regulations can change. Share these policy changes with every staff member and ask that they acknowledge and understand them, so the company won't have to deal with misunderstandings that can create compliance concerns.

Stay up-to-date on trends

It's impossible to stay compliant if HR doesn't constantly read about and follow trending news.

• Subscribe to and read trade publications. Magazines, blogs, and newsletters from respected HR leaders and regulatory organizations provide valuable information. This effort will help keep you in the know about upcoming regulations and new trends.
• Attend conferences and webinars. By regularly participating in industry events, you'll hear about shifts in mindsets and growing trends as they develop.
• Talk to your peers. Network with other trusted HR professionals and discuss compliance. You can help inform them, and they can help inform you.

Embrace change management

If the past has taught us anything, it's that change is imminent. Being ready for and welcoming change may go against your natural inclination to protect the status quo. However, it's essential for maintaining long-term HR compliance.

Hammer out a timeline and approach for how HR will implement changes into its current policies. From there, educate every HR person about the change, when it's coming and why it's happening. Finally, monitor how everyone adapts to the change and follows the new rules to maximize your compliance efforts.

Use an HR software service provider

Human resources information systems (HRIS) can help support compliance. This cloud-based software solution can streamline and automate your processes, enhance efficiency, less vulnerability of errors and greater all-around success.

An HRIS can also help you navigate certain HR compliance requirements, because its provider can update the software year after year to incorporate new rules and requirements.

Choose a provider that offers what you need. For example, small organizations may only want a way to handle payroll and the related reporting to agencies. Larger companies may want a system that does that along with time-tracking, compensation and benefits, managing employee information and other business management functions.

Implementing HR software can make it easier for HR to navigate regulatory compliance, document tasks for audits and perform more efficiently as a whole.

Understanding HR Compliance Trends Is Essential for Success

A recent Gartner survey on HR Technology shows that 56% of HR leaders say their HR technology solutions and strategy do not match current and future business needs.

TriNet's HRIS — HR Platform — offers powerful HR technology built for companies that want to run HR in-house with an intuitive, cloud-based platform.

Our administrative services organization (ASO) combines HR Platform with the outsourced HR services your business needs to thrive. This option — HR Plus — offers three levels of service for companies that want full control of their HR and want to maintain their employer of record status, but need help with administrative tasks.

TriNet PEO, a professional employer organization, is a full-service HR outsourcing solution for compliance, payroll, access to benefits and other HR needs.

HR compliance involves staying within boundaries, following internal policies and maintaining industry standards. Get the help you need with this cumbersome, ever-evolving task so you can focus on what matters-- while gaining peace of mind and the freedom to innovate. Contact TriNet today to learn how our comprehensive HR solutions can help your business.