The complex and changing nature of employment law and introduction of new legislation like GDPR make it increasingly difficult for organisations to stay on top of HR compliance. In a complex regulatory landscape, over reliance on legacy processes and in-house teams can leave many companies exposed to risk, with one-third reporting they had been penalised for non-compliance issues in the last year.
Especially following the GDPR, the challenges around managing HR regulations, payroll and employee benefits create a big opportunity for human resources and finance executives. Because when it comes to transforming the way you maintain compliance and mitigate risk, your strategy can keep you a cut above the competition.
When every small change in legislation can have a wide-reaching impact across the business, the advantages of outsourcing become clearer.
"75% of finance executives say they don’t have access to real-time compliance data"
Substantial changes in HR legislation also require specialist input. Taking ongoing action to ensure GDPR compliance, for example, is as much about employee data protection as it is to do with managing external customer data. You need to know about the new rights of your employees, how to respond to data requests and how to prove that those requests have been executed. Ultimately, you need show regulators that your employee data protection policies and HR data management systems are optimised and compliant.
You need a thorough understanding of the employee data you hold – from recruitment information and medical notes, to payroll and expenses – and to be able to map that data across systems and processes. Such demands prompt many organisations to consider outsourcing their HR and payroll functions.
ADP works with leading organisations across all sectors to help them manage HR compliance and remove risk as regulations shift and companies evolve. These organisations benefit from over 65 years of experience in the HR and payroll arenas, our deep understanding of existing and future compliance challenges, including GDPR, and our on-going monitoring of HR regulations across the multinational landscape.
We’ve produced a white paper that discusses the challenges around HR compliance and provides detailed insights on how to mitigate future risk. You can also read more about the specific issues around GDPR in a dedicated area of the site.