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The Risks of Non-Compliance for your Business

by Shilpa Shingade

Introduction

Corporate compliance involves adhering/following to a wide range of rules, regulations, laws, and standards which are designed to protect your business, employees, stakeholders and all others involved in the organization. Right from obeying safety guidelines, to following the standards for payment of wages an organization must comply with all the local, state and federal laws at all the times.

In recent years, adhering to the laws and standards, and monitoring the compliance of the business processes has evolved as a major concern for the business owners. Monitoring not only refers to continuously observing possible compliance violations but also includes predicting possible compliance violations in the future. Since the concept of business process compliance is vast, thus approaches related to process monitoring are hard to identify. Monitoring the compliance of business processes with relevant regulations, constraints, and rules during runtime has evolved as a major concern in practice.

The cost of non-compliance and monetary fines have been continuously increasing in the past few years. However, business owners are getting impatient as these consequences would affect the organization in many ways. Increased complexity, enforced business changes, and individuals being held personally accountable are all set to continue because of continuous compliance failures.

HR Compliance Plus

Why Statutory compliance

  • Required by Law-All the registered companies are required by Lato follow the statutory laws and comply with them.
  • Audits-Non-compliance also invites unnecessary inspection and audits, leading to waste of time and money.
  • Financial  Penalties-Non-adherence to statutory Compliance leads to payment of heavy fines and indirect loss to companies.
  • Imprisonment-Non-compliance may lead to fines and imprisonment of the CEO/Directors/Board members
  • Brand Value and Market Reputation– Payment of fines and imprisonment can destroy a company’s brand name
  • The company shut down– In serious non-compliance cases, companies are asked to shut down by the authorities.

Recent examples of the impact of being Non –Compliant  – Referred from QuickBooks Resource Centre

  • The Department of Labour’s Wage and Hour Division (WHD) recently obtained a consent judgment of nearly $1 million to secure the payment of back wages from Manna, a restaurant chain operating in New York. 
  • Businesses that are found to have discriminated against an applicant’s protected class (e.g. religion, national origin, sex, etc.) can expect to pay up to $300,000 in compensatory and punitive damages, depending on the size of the offending company.
  • If you are alerted to an OSHA violation, don’t hesitate to correct it. Allegations of blocking exits and hazardous conditions at a Boston location led to Dollar Tree Stores facing a fine of $177,800.

Newer technology driven solutions have emerged to protect businesses from Non-Compliance

Compliance requirements can be complex, and business owners may not always be fully educated about the latest rules and regulations.

Because of the vast number of government guidelines for compliance, it can be easy for business owners to find themselves in violation, leaving their companies open to penalties and even dissolution. Having a complete and thorough understanding of corporate compliance is crucial to protecting your business in the years to come.

Illustrative benefits of  using technology driven approach:

  • Reduces business risks
  • Helps to expedite global expansion
  • Enhances control and visibility
  • Real-time, cloud based platform
  • Enables proactive alerts, notifications, and escalations to eliminate business risks
  • Interactive global compliance command center -that allows you to change priorities, delegate activities and monitor progress
  • Flexible, customizable
  • Intelligent dashboard, alerts, and analytics.

After all, when it comes to non-compliance issues, ignorance of the law is no defense.

“Being Complaint is not a choice, but a mandate”

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Learn how IoHR (Internet of HR) assist revolutionize your business reality

Internet of Things + HR = Internet of HRby Teena Thimothy on 3 Feb ’15

Globally organizations are pondering how best to leverage the new age technology and wisdom to stay ahead & lead the pack. Staying ahead with technology may be a necessity, but what else is important to your business.

Here is a simple question to help you figure the right answer.  What is your business reality like?  Adopting cloud computing as the main computing platform for conducting day-to-day business, or empowering your workforce with mobile advancement and so on.

Here is a fresh proposition that will help incorporate all of the new age technology and still allow you to experience a business reality that you envisioned, by harnessing the internet of things (IoT). By 2020 it is estimated that there will be around 50+ billion connected devices whereas the world population may be around 7 billion.

Internet of things (IoT) encases the entire world, so let me drill down to narrow the focus.  The IoT is evolving to become the central nervous system, but remember the heart of your business org is your “human resource”. So how can IoT couple with your HR?

It helps to understand what Internet of Things is. IoT is the interconnectivity between things; the medium of connectivity is wireless communication technology identifier to connect to the internet and each objects, locations, or living thing has its own unique, thus allowing for the direct transmission and seamless sharing of data.

IoT is especially interesting as it incorporates independent electronic system using mobile, cloud, microprocessor & real time analytics to help translate 

data–>information–> knowledge–> wisdom

Here are few use cases and the impact of IoHR (IoT in HR). It isn’t limited to these few, this is just a start.

Smart training room for Learning

  1. Smart training room that will have smart content, smart delivery, and smart learning infrastructure.
  1. Intelligent chair – that can log attendance of the individual. Talking between chair (pressure), RFID ID to identify individual, integrated attendance system, etc.

Intelligent onboarding

  1. Onboarding of new resource supported by wearable device and self-learning and orientation
  2. Google glasses – with complete onboarding and orientation session
  3. RFID tagged resources for tracking location of the resources required for me to perform my work

Smarter manpower planning

  1. Workforce Administration – Workforce application on-demand.
  2. Dynamic roster planning based on mapped resource competency, productivity, and availability vs. real-time need

Smart work allocation

  1. Smart work allocation process; dynamic work allocation workflow
  2. Varying work allocation based on “current” productivity and efficiency of resources

Smart workplace

  1. Infrastructure Workplace that is designed for maximum productivity and responsive to workforce needs
  2. Turning on contextual display devices
  3. Extra sound absorbing mechanism activation during meeting hours; brighter lighting during break timings

Technology is just the middleman and organizations will need to look beyond the tip of the iceberg to see the multitude of opportunities. Technology can help re-engineer out thinking to accommodate large scale remodelling of our requisites envision a new reality and make it in happen in real time. The famous statement work smarter not just harder is found new meaning with this revolution. Envision a smarter HR; help build a better and stable organization.

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How to localize your “existing” HR technology infrastructure without having to customize it?

by Samuel Isaac  on 21 Jan ’14

The way HR technologies are moving, localization may be outdated in the future – possibly a decade from now. Especially with the advent of global cloud based HR systems. But till such time, localization will continue to be a painful need of HR strategy for Multinational Corporations (MNCs) worldwide.

Technology has been a key enabler and inhibitor of standardization and localization of HR respectively. At Neeyamo, we have observed that the failure rate of HR transformation initiatives go up with excessive thrust on standardization and return on technology dollars go down with increasing flexibility for localization. Local HR seems to be adverse to adopting some global HR processes and vice versa. While standardization does help institutionalize global HR best practices, localization are required to address local statutory requirements and socio-politico-operational-cultural (SPOC) nuances. Given the importance of human capital in a knowledge economy, it becomes a tightrope for global organization and their HR IT units to strike a balance between the right degree of standardization and localization.

There is a constant tug-of-war between the propagators of standardization at the corporate HQ and advocates of localization from the local HR. While the question of standardization vs. localization will continue to be played in the HR transformation war rooms as a part of the internationalization of human resources, it will also be a question of – to what degree? And more importantly – how? Enter – Discrete HR Apps.

The global HR system tries to institutionalize global best practices and “basic tenets” of contingent/ local practices. These components of a global HR system however fail to address nuances of the local HR requirements that calls for higher degree of localization, sometimes as local as only to one business unit in that geography! The Discrete Apps help create a HR technology infrastructure that enables MNCs address inevitable localization requirements without having to go for costly and very-oft self-defeating customizations. Discrete Apps helps address

localized HR requirements that goes beyond certain objective factors such as local labour/ industrial law and regulation and goes ahead to address localized process refinements that are aligned to local business and operational realities.

The non-invasive integrating Discrete HR Apps cater to MNCs’ local demands without having them compromise their HR system’s globalization tenets. Discrete HR Apps – which are highly configurable and can operate in harmony with the local HR processes and global HR systems – allow an organization to be much flexible to their localization needs and celebrate heterogeneity of the global organization.

To know more about HR Discrete Apps and to understand how it can address your localization needs, talk to one of our Discrete Apps specialists today.