How Does HCM Technology Overcome HR Compliance Challenges-Accomplishep

The compliance ecosystem is constantly evolving with new HR rules and regulations reshaping the way organizations operate day-to-day. Every year, complying with these laws gets harder and it goes true for 2020 as well. Each state is coming up with its compliance regulations, creating different policies. 

Also, the Human Resource landscape is expanding rapidly and managing companies is getting trickier and more challenging. What is the best way to ensure HR compliance? How employers and HR managers can keep up? The answer is HCM or Human Capital Management, an automated HR tool to optimize compliance. It manages the HR environment practically and efficiently, making the tasks easier and uncomplicated. 

A decade back, labor, wage, and hour law witnessed an active period, influencing payroll, and HR across the state, federal, and local jurisdiction. Of course, complying with the regulatory changes became a full-time job for HR professionals. When maintaining and enforcing a culture of compliance got challenging, HR technology came to the rescue to help organizations stay at top of their game. 

It is not only a way to avoid government fines and penalties but also secures businesses and employees while delivering an excellent experience to clients. Rest assured that HR software will enhance the accuracy of the HR department along with improving the hiring and recruiting process. 

What Is HR Compliance?

HR Compliance-Accomplishep

The process of defining policies and regulations in an organization to ensure that the workforce demonstrates a thorough understanding of laws and procedures is called Human Resource compliance. The government introduces new laws and policies every year, thus increasing HR complexities regardless of the size of the company. Any failure to comply with the changing laws can lead to penalties and risks. Hence, it becomes essential for employers and the HR team to make sure that their company adheres to these rules. The rules that they should be aware of include:

  • All the employment laws, such as federal, state, and local regulations and also follow them.
  • Audit regulations for the businesses and enforcing agencies may levy fines in case of non-compliance.
  • Lack of understanding or knowledge of compliance obligations is not an acceptable reason for legal defense.
  • Any lawsuit settlement can result in bankruptcy. 

Talking about compliance management, it is the process to make sure that the employees in an organization follow all the prescribed rules and regulations. It consists of policies, procedures, security controls, tech enforcements, audits, documentation along with the regulations laid down by the government, employee unions, and regulatory bodies. 

Accurate Timekeeping

Calculating overtime and paying employees accurately has become crucial than ever. Navigating through all the complexities of overtime is only growing with time. According to the Fair Labor Standards Act, more than 1 million employees are eligible for overtime pay. 

With numbers rising at such a rapid rate, companies need to get acquainted with the laws and deal with overtime pay properly. There should be a meticulous system to collect and calculate time accurately, including hours worked, paid time off, overtime, breaks taken, etc., so that employees are paid the right amount. 

Considering that overtime is the primary cause of wage and hour complaints, companies need to pay the utmost attention to it. Therefore, the HCM system allows detailed insight into time management. With effective tools that track the in and out the time of employees, total working hours can be calculated precisely. It comprises push alerts that notify employers about the schedules and overtime data, saving valuable time and resources in the long run. 

HR Analytics and Reports

Compliance is based on paperwork, such as employee handbooks, tax reforms, health forms, disciplinary actions, and other documents. Of course, taking care of all this documentation manually is challenging and time-consuming. 

However, with Human Capital Management software, companies can store the data electronically eliminating lengthy paperwork and errors. Also, you can retrieve the required information when needed for the audit and classify the forms based on regulatory norms. The HR software solution offers HR analytics and reporting capabilities that ensure transparency in your operations. 

Moreover, you can verify compliance with ACA, VETS, EEO regulations, and identify inconsistencies easily. With cloud-based HCM software, you get a dedicated platform to generate reports without any hassle or manual effort. 

Workforce Scheduling

For businesses with large workforces, such as retail and restaurant, managers have a hard time predicting scheduling and staffing needs. Many a time, employers have to make a last-minute decision which may create chaos and confusion. 

The authorities and lawmakers took notice of this situation and have asked organizations to prepare more predictable work schedules and post the advance requirement at least two weeks before. Needless to say that attaining this is easier said than done for people but the HCM system helps employers and managers to forecast labor needs, avoiding last-minute changes, and ensuring predictable work schedules. 

With artificial intelligence, machine learning, and forecasting algorithms, businesses can analyze the scenarios and predict future needs according to job functions, and skills. 

Leave Administration

Gone are the days when leaves were administered manually via emails, paperwork, spreadsheets, phone calls, etc. Honestly, all these management tasks only added to the workload of the HR staff and errors in HR compliance. Furthermore, processing unplanned and planned leaves and determining which policy applies to them is not that simple. 

Also, every state and jurisdiction has its policies, and leave calculation can vary according to employee location. Multiple policies can be applied to one sick time or leave which further decides how the employee should be paid. Simply relying on the HR manager in case of more cases is quite risky. 

Thus, companies switched to HR software that eased the complicated workflows and handled the documentation accurately. The best part of such a robust leave management solution is that it helps employers avoid complicated paper trails, enhance communication, and provide real-time analytics which is important for corporate compliance. 

Also Read: How Can HCM Software Address Your Payroll Concerns?

Risk Mitigation

Manual calculations and documentation are prone to errors. The HR department used to maintain spreadsheets to keep track of employees, payroll, and other information. This not only increased the chances of mistakes but also in non-compliance. However, HCM software ensures compliance management along with eliminating errors. The HR software comprises a tool that notifies users in case of any discrepancies. 

So, if you want to mitigate the risk of errors, then seek a reliable HCM software company to incorporate an efficient HR compliance technology into your system.

However, there are some other hidden HR compliance challenges that we may look upon. As we know the HR department is one the efficient division in every industry. They played a pivotal role in maintaining a complete compliance structure. We understand to create a secure hub for your employees is a must. There are some other safety policies of your employees that matter, such as violence, harassment, procedural violence, threats, and so on. 

It’s not easy for your HRs to follow up these remarks every other day. Hence, executing Human Capital Management will lessen your worry and your HR will be able to register and track the compliances easily.

Risk Mitigation-Accomplishep

Back to the point, we are mentioning concealed HR Compliance Challenges that could be overcome through HCM.

  • Managing multiple vendors at a time can be exhausting to HR departments especially when they are handling small business models. But, implementing an effective HCM tool will help them to streamline the process and they can also communicate with vendors. As we know, every tool generates its own data, through this way, HRD would be able to grasp the exact analysis for the completion of a task
  • Lack of internal communication is another major HR Compliance issues in the workplace. It has been seen that executive levels employees have issues with senior leaders for not making them understand the new approaches and goals at the organizational level. But when there is a use of HCM tool at the workplace, managers can get in touch with the HR and make them upload the new set of policies and knowledge base for the employee and retain towards them. There is a huge investment for setting up these HCMs’ 
  • Sometimes, the current strategies at the workplace may get interrupted because of negligence. Hence to create a perfect work culture and ethics, executing the HCM tool is the best option one could do. Human Captial Management technology will ensure the streamlining o the process with better efficiency. 

Hence, before proceeding with any product for your organization make sure to jot down the list of questions. This will help you in understanding the clear preview of why you need the HSCM tool.

  • What is the most frustrating factor in the Human Resource department?

We understand that the answer to this question may vary. There are some HRs’ who are dedicating their time and effort to copy data into the systems that aren’t integrated. There are various reasons that could slow down your efficiency at the workplace. It is important to understand the points that are annoying you in the organization.

  • Does our company is on the right track?

Make sure to understand the overall organization’s work ethics and goals. Apart from this, you can also have insights into the technologies that they are using. This will help you in understanding the better perspective of your organization.

Some other questions that you can ask are: 

  1. Should I offer perks to the employees? If yes, what could be the bonus features?
  2. If we get the HCM tools, what are the goals that we would focus on first?
  3. What about the capital? How much it would cost to get the fully-fledged HCM software


The pressure of HR compliance will not rest on management and they have to be on their toes to make sure that they avoid any fine or penalty. This is when automating the process comes in handy. The Human Capital Management system helps HR managers minimize the time they spend on updating the policies and conveying them to employees.

If your organization is still not using an HRIS solution, then it’s high time that you make a change. Connect with Accomplish for a trusted HR technology that assures you of peace of mind and a simplified compliance management system. 

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