Keeping a small organization compliant with labor regulations is challenging. But when you multiply that challenge by 10,000 employees in dispersed global operating units, the challenge becomes overwhelming. If such a company were 99 percent successful in its compliance efforts, that’s 100 instances of non-compliance every day.
How can large enterprises keep their timesheet ducks in a row when their employee infrastructure is complicated? Here are five labor compliance hazards to watch out for and tips to mitigate them.
- Choosing a single provider with an inferior product. Companies often choose a single provider to cover all of their HR solution needs. They feel this single provider might be more accountable in case there is trouble, and more available to maintain the product. Vendors that address a number of broad HR needs, such as time tracking, recruiting, benefits management, payroll, performance management etc., in a single package, however, might not offer the best solution for each individual function or process. They may have the very basic data entry functionality but these products aren’t easy to use – their interfaces haven’t been updated in decades. They suffer from low adoption rates as a result. And when everyone isn’t entering their time, the end user company can’t receive the basic time data it needs. If a general provider hasn’t focused the needed resources on time tracking to make the best available product, look for a specialist. Find an enterprise time tracking platform that isn’t just a piece of a bigger pie, but is a complete solution in itself.
- Loss of reputation and goodwill. What if you fail a compliance audit? Your reputation and goodwill is put at risk, which in turn impacts financial performance. The goal is to never fail an audit. In order to do that, establish automated time tracking systems that ensure a clear audit trail.
- Excessive data. Large organizations often have so much data that they require an entire compliance team to handle it. Compliance becomes an expensive burden. Look for time tracking solutions with advanced reporting capabilities. These will help with internal audits and drive down the compliance workload.
- The part-time, dispersed workforce. Part-time workers often work off-site, and have different pay rates, benefit plans, tax structures, and governance rules than full-time exempt employees. Without centralized time tracking data, companies risk incurring errors and inaccurate information. This leads can lead to compliance problems and penalties. Ensure all data is readily visible at all times by using a cloud-based timesheet solution.
- Too big to be compliant. The sheer size of some organizations, combined with data that is stored in separate locations and thus not visible across the business, makes top managers unable to monitor compliance risks. Find a solution that integrates with others. That way, you can manage compliance risks in one central place.
When it comes to time tracking to ensure compliance with labor regulations, large enterprises face many challenges. Look for a cloud-based time tracking solution powerful enough to address each of the risks listed above.
Original Source: Business2Community