Statutory compliance essentially implies an organization’s adherence to laws and regulations. A statutorily compliant business benefits in the following ways:
- Avoiding penalties and legal issues – Complying with rules and regulations avoids problems such as penalties, license revocation, lawsuits, business shutdown, and so on.
- Higher employee engagement – Compliance with labor and employee laws indicates a work environment that is safe, professional, and employee-friendly.
- Quality improvements – Statutory compliance prevents potential risks associated with non-compliance and ensures the quality of products and services.
- Boosts employee morale – Fully compliant businesses build an atmosphere of goodwill and reliability, enhancing the spirit of the workforce.
- Improved business operations – Focus and resources can be directed towards high-priority business activities.
- Brand loyalty and better public relations – A dedication to high ethical standards reflect fair and transparent business operations and fosters trust in customers.
- More business opportunities – Companies having a strong reputation for statutory compliance attract investors and other businesses seeking partnerships.
On that account, compliance is key to growth and progress. Let us examine the various measures to take and how the latest cloud-based software helps in ensuring statutory compliance.
Stay updated about ever-changing laws and regulations
Compliance is a continuous process that involves keeping track of rule changes, identifying how it affects the company, modifying policies accordingly, implementing the changes, and monitoring. Being prepared for potential changes ensures the organization is not blindsided in the wake of new legislation.
Use the right software and tools to help simplify compliance
More often than not, small and medium enterprises may unintentionally violate rules. Nowadays, HR tools like compliance software solutions make ensuring compliance less complex. Organizations having reliable software are more likely to function in accordance with rules and reduce human errors. Moreover, compliance software comes with in-built tools for organizing data and generates audit trails automatically. For important functions like payroll, cloud-based payroll software ensures that everything is in order and accounted for.
Ensure all employees follow procedures
Unless followed by the workforce, company policy is obsolete. Employees may not always easily adapt to policy changes and often show reluctance in altering workflows. The human resources management is responsible for communicating company policy and procedures throughout the organization. It is imperative that workers understand the essence of guidelines and why they change.
Conduct internal audits regularly
Internal audits are an effective tool to uncover discrepancies in an organization. They may focus on the operational, financial, regulatory, or technological aspects of the business. It is vital that the auditor observes credible auditing standards and remains unbiased when reviewing compliance.
The relation between compliance and organizational success cannot be overstated. Government laws and regulations have been devised to promote best practices in a manner that is conducive to sustainable growth. Failure to comply with these standards can have profound implications on an organization’s development and hinder success. In these turbulent times of the pandemic, the need for maintaining the highest standards of business is greater than ever. Therefore, it is crucial to uphold operational transparency, abide by rules and grow organically.