HR Compliance: Managing the Risks
Photo Credit: Mari Helin on Unsplash
For all organisations, big and small, it is their personnel that lie at the heart of their business success. Managing the core functions of human resources is therefore essential for any company wanting to remain at the top of their game.
For many small to medium businesses, however, they often don’t have the capacity to support a full-scale HR department, leading to HR compliance being overlooked.
This can lead to myriad impacts on a business, including poor onboarding processes, lack of staff retention, and ultimately, financial and legal implications.
HR Compliance and Legislation
Whether you are a small-scale start-up or a large multi-national organisation, there are government regulated obligations you must meet in order to remain compliant.
These obligations are dependent upon legislation which is ever-changing in nature. 2020, in particular, has seen a raft of legislative changes being made due to COVID-19. Changes in working conditions and locations, increases in Workplace Health and Safety laws and regulations and rising stand-downs has made it increasingly difficult for businesses to keep up.
While the events of 2020 have seen an increased focus on HR compliance, the importance of human resources and the role it has to play in protecting workers has been gaining increasing awareness over the past few years.
With the #MeToo movement of 2018, many companies saw an increase in workplace harassment complaints, the impact of which continues to reverberate across the country. Further to this, 2019 brought to light many underpayment scandals across several industries, including the hospitality, legal and retail sectors.
The cost of ineffective governance can have wide-reaching effects, in some cases bringing previously thriving businesses to their knees.
The Cost of Poor HR Management
The cost of sub-standard HR management can be devastating to businesses.
Poor governance, combined with a lack of proper onboarding processes, has been shown to lead to high staff turnover and consequent lack of profits.
In a recent speech to the Australian Human Resource Institute’s New South Wales Employee Relations/Industrial Relations Network Forum, Fair Work Ombudsman Sandra Parker discussed the reputational and financial implications of non-compliance.
“It is safe to say that the […] impact for businesses that get it wrong is much greater than what they might have spent in getting it right from the outset,” Parker said. “If you notice a problem […] ensure your house is in order before it costs your company its reputation – and possibly much more.”
While there is no doubt workplace laws are complex, this will not mitigate the risks for non-compliant employers
HR Compliance Throughout The Employee Lifecycle
Over the coming weeks, I will be delving further into the specific workplace laws that need to be followed at each stage of the employee lifecycle.
This will include guidance around the following:
Recruitment: How to create a non-discriminatory job advertisement, conduct interviews and reference checks, and draw up job contracts that contain the 10 National Employment Standards
Paying Employees: Understanding and implementing the correct awards for workers, including knowing who can and can’t be classified as independent contractors, casuals or seasonal workers
Record-Keeping: Keeping the right records, including payslips, timesheets and rosters
Benefits: Knowing the leave and superannuation entitlements of all employees
Mediation and Conflict Resolution: Putting in place processes to deal with workplace complaints and disagreements
SMEs must stay up to date with changing legislation to ensure they remain compliant and mitigate risk to their business operations.
At Infinity HR, our HR professionals can provide expert advice on all things HR. Contact us today on 0400 489 743 or email info@infinityhr.com.au to learn more.
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