October 6, 2020

Introduction to HR compliance

What is HR Compliance?

HR Compliance is the process of ensuring that a workplace environment is following the correct procedures surrounding law and regulation. The term compliance describes the ability to act according to an order, set of rules or request.


There are two known levels of compliance:

1. Level One: Compliance with the external rules that are imposed on the entire organisation.

2. Level Two: Compliance within the workplace internally.


The different functions that revolve around HR Compliance include:


Human resource planning

This process is the systematic planning to optimise the organisations more valuable asset, the quality of employees. This system is used to avoid surpluses and waste of HR resources. There are multiple steps of the human resource planning process, which include:

1. Objectives of Human Resource Planning

2. Current staff inventory

3. Forecasting demand and supply

4. Employee Gaps

5. Employee plan

6. Training and Development

7. Appraisal of employee planning


Job analysis design

Job analysis is the process of determining and recording all the pertinent information about a specific job, including documenting the tasks, knowledge and the skills required to perform the job; which is allowing the recruitment and selection of the job to begin.


Recruitment and Selection

This is defined by the process of identifying the skills, qualities and other requirements given to conduct the job correctly, especially following the guidance of law and regulation.

This is essential that this is followed with HR compliance, for example advertising a role in business must require the correct qualifications needed; if this is not followed this is putting the employee at risk and creating further problems for the business.


Orientation and Induction

This process is crucial when following HR compliance, once the employee has joined the business, it is essential that the correct training is conducted. For example, training should be conducted in health and safety around the office, or the businesses fire procedure. This is essential to HR compliance and should not be neglected. This is putting the new employee at risk and is again creating significant problems for the business.


Training and Development

Training and development are essential for the business to conduct not only when the employee joins the business but also during the employee's time at the business. There are multiple different training sessions which can be conducted, such as refresher training session about a specific aspect of the business. There are numerous advantages of employee training and development:  

1. Increased employee motivation

2. Improved engagement

3. Profit growth for the business through enhanced employee training

4. Deeper talent succession

5. Reduced employee turnover


Performance appraisal

This is essential for a business to have regular performance appraisals with the employees; this is following HR compliance significantly. Appraisals are essential as it is an opportunity to understand the employee's concerns, future promotions, salary or anything else. This is following HR compliance as this is looking after the employee's wellbeing and progress in the business.


What are the five critical functions of a compliance department?

1. Identify the risks that an organisation faces and provide the next steps to move forward.

2. Design and implement controls to protect an organisation from the threats.

3. Monitoring and reporting the effectiveness of techniques for preventing risks.

4. To resolve compliance difficulties that may occur.

5. To advise the business on rules and controls.

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