Security and Compliance: The Work Behind the Scenes
December 11, 2018
For years, businesses have relied on human resources professionals for candidate recruitment, new employee onboarding, employee support, ongoing professional development, and more. These roles are all incredibly important and play hugely into company culture, employee morale, and talent retention. However, for the most part, these responsibilities have kept HR professionals in the background. In recent years, though, HR’s role has both expanded and come out from behind the scenes a bit more. The changes are forcing companies to question how they handle HR and have even pushed many businesses to consider HR outsourcing.
HR’s New Role: Compliance Expert
If you had asked an HR professional 10 years ago what their primary responsibility was, they probably would have told you “people.” Today, though, HR is increasingly synonymous with regulatory compliance. On the local, state, and federal levels, new compliance laws and ordinances have come into effect that have changed the game of talent acquisition, management, and retention. As a result, these compliance rules have changed the game for HR, too.
The laws in question are reshaping the way that employers handle the people they hire. Tweaks in health insurance legislation have required businesses to re-examine their benefits packages. Minimum wage laws are mandating revisions to payment policies. Ban the box laws—legislation that bars employers from asking questions about criminal history on job applications or in interviews—are prompting companies to tweak their job applications, review interview best practices, and even delay their pre-hire background checks. The #MeToo movement (and the legislation it has inspired) is causing businesses to take a closer look at their policies for preventing and dealing with workplace harassment. Stricter immigration laws have triggered many companies to take a closer look at who they are employing.
Why Companies and Startups Are Outsourcing HR
All these changes (and more) have caused HR’s long-held responsibilities to collide with the burden of legal compliance. Companies are trying to develop HR compliance solutions that can provide a shield against legal violations and their potential consequences. But while businesses are leaning on their HR teams for compliance on these matters, those same teams are still responsible for their old duties: onboarding, employee support, professional development, and retention. The balancing act is difficult for even the most hardened HR veterans.
It is in this strained context that HR outsourcing has become a valuable solution for many startups and well-established businesses alike. Staying compliant is getting more and more difficult every year, and HR compliance is a big part of the reason. As HR professionals attempt to juggle the burdens of compliance with the responsibilities of talent management, many of them are starting to struggle under the weight.
The risks of this volume of work can’t be overstated. They range from employees feeling neglected to new compliance requirements falling by the wayside. HR outsourcing can help. Handing off some or all of your company’s responsibilities to an outside HR pro can mean teaming up with an expert who is exclusively dedicated to knowing about new compliance regulations and providing companies like yours with timely compliance alerts.
You might choose to keep an internal HR team to promote staff development and for retention, while the outsourced experts handle the compliance side of things. Alternatively, you might opt to outsource your entire HR department—a popular choice for startup businesses in particular. Either way, JetPay can provide the outsourced solutions you need. Contact us today to learn more about our HR outsourcing services.
HCM Sales Manager
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