5 Steps to Build an Effective Compliance Strategy
There’s no question that the world of work has seen major changes over the last several years. Today, organizations must keep up with many regulatory changes quickly while still managing their daily business processes.
When companies operate in a reactive rather than proactive way, it’s challenging to keep up. This is where having an effective compliance strategy can help.
What is a compliance strategy?
A compliance strategy will safeguard your organization from the fines and loss of talent due to non-compliance. It also allows you to act on compliance regulations quickly without it interfering with work.
But too often, abiding by the laws and regulations governing your business falls to one department or person. Most organizations (62%) have a compliance team made up of 5 or less people, according to this recent study.
The key to an effective compliance strategy is to coordinate amongst critical teams: HR, IT, and payroll. Collaboration gives organizations visibility into laws needed for operation and eases pressure on individuals or teams.
The key to an effective compliance strategy is to coordinate amongst critical teams: HR, IT, and payroll.
Having a good corporate compliance strategy helps protect workers by following rules and regulations, which has a positive impact on your employees. By making changes, you protect your business, serve your people better, and create a unique employee experience.
Here are five steps to take to build an effective compliance strategy.
How to build a compliance strategy
Step 1: Identify the correct team members.
The first step is to identify the teams and functional roles that need to align. Then, evaluate the compliance concerns of each team, such as data safety for IT and tax laws for payroll. Keep in mind that compliance concerns can vary depending on the industry and employees. Next, prioritize the risks that require addressing. For example, prioritize a compliance regulation that has a direct impact on paying your people correctly and on time.
Step 2: Identify opportunities for alignment.
Find opportunities for alignment and start building new working strategies that will be able to accommodate all teams. When aligning your team, focus on the areas that will help reduce duplicative efforts. Using each team’s strengths and expertise will help you find gaps in your processes and learn how to fill them.
The most important thing to remember while building your compliance strategy is to break down silos. You want to make sure your teams are working together so they can bring out the best process for your company.
Step 3: Understand the technology available.
Understanding your company’s technology means making sure each team is aware of the tools available to handle compliance and reduce risk. Using HR technology can simplify compliance and keep employees informed.
HR technology alerts you of new laws and regulations and automatically updates the system based on your company’s structure. For this reason, it’s important to train employees on how to use these tools and consolidate communication protocols for compliance changes.
Step 4: Capture and embrace employee feedback.
Listening to your people when implementing new processes is critical to success. Since your HR department and payroll teams constantly get feedback from employees about challenges they’re facing with technology, consider this an opportunity for them to work more closely with the IT department to identify adjustments that could improve the way your organization adapts to change.
Step 5: Establish regular check ins.
Compliance rules change often, so schedule regular, cross-functional check-ins, even after implementing your compliance strategy. On-going meetings ensure each functions’ needs are met and everyone is clear on processes. This will also help solidify a proactive strategy and allow you to quickly make changes to increase efficiencies.
Building a compliance strategy that works
To create a proactive compliance strategy, IT, HR, and payroll need to collaborate to meet the needs of both employees and the company. Teams work better together when they know their roles and expectations, and can communicate openly to reduce and manage risk. Working together leads to more creativity and innovation, better use of technology to improve processes, and a more connected workforce.
If you want to connect your organization’s teams and create an effective compliance strategy, watch our webinar on “The Compliance Alliance.” It explains how working together can reduce risk, increase agility, and create a more connected workforce.
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