0

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”

0

Here’s how you service your employees in the #LongTail

by Samuel Isaac  on 14 April 2016

A NewYork headquartered multinational with 20,000 employees worldwide and you are worrying about the only two employees you have in Thailand?

How long is your tail?

HR solutions for the long tail of countries.

According to International Labour Organization, today, some 50,000 multinational enterprises and their 450,000 affiliates employ over 200 million people throughout the world.  According to a survey carried out by Neeyamo Inc., MNCs on average have close to 60% of their workforce within their home countries and the balance placed internationally. Half of these or close to 20% of the population are scattered across a Long Tail of countries. That is more than 40 million employees!

The anatomy of the Long Tail is characterized by a catastrophic combination of low employee headcount scattered across long tail of countries, broken processes and very limited access to the HR technology infrastructure. It is a nightmare for HR leaders across the globe to keep these employees engaged and have visibility & control over these geographies. Not to mention that the local compliance requirements galore and a large number of vendors to manage.

Well, Long Tail is indeed a looooong problem for those managing HR in multinational companies.

So here are the 5 Long Tail HR strategies that should help you effectively manage your talents in “small countries”.

  1. No bees, no honey; no work, no money. GET YOUR GLOBAL PAYROLL STRATEGY RIGHT.
    A critical aspect of payroll is its impact on the morale of the employees. They need to feel assured that they can be paid on a consistent and timely basis. This expectation becomes more accentuated for an employee working out of a remote location.
  2. Garbage in; garbage out. ENSURE YOUR HR AND PAYROLL DATA ARE RIGHT.
    A multinational had a shock of its life when they learned of a highly compensated employee, who had actually stopped reporting to work for 3 months, was continued to be paid. Inadequate data, inaccurate data, and inconsistent data inputs can have significant repercussions in your Long Tail HR operations.
  3. Think compliance is expensive? Try non-compliance. ENSURE YOU ARE AWARE OF LOCAL COMPLIANCE FIRST AND THEN COMPLY NEXT.
    Well, payroll does play a vital role in protecting the company’s reputation by ensuring compliance with various legislations. But HR compliance is more than just payroll compliance. In 2013, for example, there were 20 changes to California employment laws alone. There are close to 200 countries, around 320 legal jurisdictions that can translate to thousands of HR laws/ regulations and millions of compliance transactions!
  4. In technology we trust. LEVERAGE RIGHT TECHNOLOGY/ PARTNERS TO DRIVE YOUR LONG TAIL HR.
    Servicing Long Tail HR effectively and efficiently is only possible as a result of the following equations: platform = productivity and platform = predictability. The productivity ensures that you are able to service your Long Tail employees in a sustainable manner with a sound business case and predictability ensures you have the required transparency and control over your HR and payroll operations in these long tail of countries.
  5. Too many moving parts? Move now. CONSOLIDATE YOUR LONG TAIL VENDOR NETWORK.
    One vendor for payroll, another one for records, and yet another one for time, expense, mobility, and what not! That’s not just it – you also need to ensure that these vendors are appropriately empaneled and comply with your organization’s standards – like ISO, ISMS, and SSAE. The lesser the number of vendors you have to manage the better and if this vendor can bring along the right credentials to give you that confidence – then even better!

So well, 2 employees are all that you may have in Thailand but you may now have a world-class solution to support these employees you only wished you had! Write to irene.jones@neeyamo.com to know how?

0

How to build and communicate Employee Value Proposition? (Part 1)

Employee Value Propositionby Aishwarya Saraswati & Sarfaraz Kazi on 6 May ’15

War for talent seems to be a buzz word these days. To have a strategic business edge over your competition; your HR team needs to develop the art of attracting, developing and retaining talented people.

But the simplest explanation defines Employee Value Proposition (EVP) as: “The balance of the rewards and benefits that are received by employees in return for their performance at the workplace”.

As an org you make available to your employees a whole lot of components as rewards for the contribution they make to the organization

EVP has multiple facets made up of tangible as well as intangible benefits and rewards. When building up your EVP you need understand

  1. IDENTITY – how current employees see the organization
  2. IMAGE – how the external talent marketplace sees the organization as an employer
  3. BRAND – how the top management sees and wants the development of the organization

Of course there is a gap between the organization’s identity and image. Hence the criticality to have an EVP that will ascertain your talent pool becomes your brand ambassador.

Talent building is very similar in basis to acquiring a client. HR needs to implement the cycle of Attract – Develop – Retain on talent.

Employees develop, deliver, and support the overall end customer experience on an ongoing basis. High-engagement organizations constantly strive towards not only training their employees but also enabling their success.

The EVP drafted by you should adequately answer the most commonly question by any prospective or existing employee – “What’s in it for me?”

Neeyamo has a rich history of working in end-to-end operations of the Human Resource industry, here we have outlined the best practices required for building an effective Employee Value Proposition:

  • Using employee survey data to gain insight into how current employees perceive the organization and its culture
  • Effectively communicating the Employee Value Proposition to employees
  • Aligning the Employee Value Proposition with what the organization stands for in the marketplace
  • Delivering on Employee Value Proposition promises
  • Differentiating the organization from competitors
  • Creating specific objectives for critical skills or positions and aligning the talent management plan and rewards strategy accordingly
  • Using business strategy and objectives to inform talent management and rewards programmes
  • Using analytics focusing on business performance, workforce analytics, and performance management data to gauge the efficacy of the organization’s compensations and rewards strategy
  • Refining the EVP as a continuous process on the basis of regular research and analysis
  • Mull over and identify how to bridge the identity and image gap to build a strong brand identity as well

Unlike brand of an organization, the EVP cannot be a one size fits all proposition. As a global organization you should understand the culture of the place and include elements unique to that side of the world, along with your organization’s generic value proposition.

Look forward to part 2 of the need for Employee Value Proposition…