Best HR Compliance Software in 2023

What is HR Compliance Software?

HR compliance software helps business owners, managers, and professionals stay up to date with all HR business regulations and compliance laws. It is generally associated with employees’ health and safety, data protection policy, payroll, and other benefits. 

HR compliance software makes it easy to understand complex and ever-evolving compliance policies. Not only that, but it makes it easy for businesses to communicate these policies to all their employees. 

Benefits of using HR Compliance Software

An HR professional is responsible for understanding regulatory policies and laws and taking steps to ensure compliance within the company. But with ever-changing rules and regulations, it can be a lot to bear. HR compliance software eases these issues along with increasing work efficiency. 

Here are a few benefits it has to offer: 

1. Helps Avoid Hefty Fines and Penalties

Every year, companies pay billions of dollars in fines due to non-compliance with HR guidelines set forth by the government. As a matter of fact, there are so many rules and regulations that it can be hard to keep track of them manually. Some of these policies are - 

• The Fair Labor Standard Act: 

Every country has its own national labor policy that explicitly lays out ground rules on the maximum number of employees who can work, the minimum wage standard, and leave systems. This is to ensure that no employees are exploited, especially by big companies. 

• The Family and Medical Leave Act:

Even though every organization has its own leave policy, the government has set out rules for framing them. 

2. People Management

An employee handbook can come in handy to communicate various entitlements and obligations to employees and demonstrate other compliance policies. Manually collecting and reporting on all employee-related information can be a tiresome process. Besides, it can be prone to human-errors. That’s why a solid HR or employee compliance software in place provides easy access to employee handbook templates. Furthermore, it contains samples of job descriptions, onboarding new talent procedures, and employment law alerts. 

An HR compliance solution acts as a unified platform that automatically creates important documentation for companies and ensures efficiency throughout. 

3. Reduces Compliance Cost

With the ever-increasing compliance level, the cost of personnel is also going high. More than 70% of the total compliance costs account for personnel costs. HR compliance software enables businesses to increase their compliance performance without adding more compliance personnel. 

Implementing compliance solutions optimizes the entire cost for maintaining compliance within the organization while also increasing efficiency. 

4. Boosts Employees Morale

Implementing HR compliance software in your organization directly impacts your employees’ morale. When all compliances are well addressed and communicated with transparency, employees feel satisfied that they are being treated fairly and the company cares about their employees’ well-being. 

High employees morale directly reflects in their productivity levels. Happy employees tend to be efficient and perform better.

Types of HR Compliance Software

Based on the deployment method, the HR compliance solution can be classified into three categories.

1. Cloud-Based Solution

HR compliance solutions are hosted on a cloud server, which is generally owned by vendors. The company pays the vendor a subscription price on a monthly or annual basis. The cloud solutions enable HR managers and other staff members to access the system from anywhere. Besides, it is compatible with all major devices, including computers, smartphones, and tablets. 

Furthermore, it syncs activities from different devices in real-time, keeping everyone up-to-date with all the latest changes made in the policies. 

2. On-Premise Deployment

On-premise solutions are restricted by the physical location where the server is installed. It is generally installed by large enterprises, with a massive amount of data to handle and have sensitive information. It requires a huge investment in infrastructure for installing traditional employee compliance software. 

3. Hybrid Solution

A hybrid solution is when the company uses a mix of public cloud, private cloud, and on-premise server. It gives the flexibility to shift workloads between the two capacities. For instance, sensitive data can be hosted in the private cloud, whereas less critical information can be hosted in a public cloud. It becomes an affordable option for businesses that do not have the amount to deploy an on-premise solution. 

Software and Services Related to HR Compliance Software

Let us look at some of the services offered by HR compliance software: 

1. Federal & State Legal Alerts

The best HR compliance sends out automatic alerts and notifications in case of any changes made by the state and federal law related to employee policy guidelines. 

2. Employee Benefits

This section allows HR managers and employees to view policies related to retirement and pension benefits, workers’ compensation, and other related services. 

3. Leave Management

It gives an overview of the company leave policy and the public holidays announced by the government. Employees can easily find information on holiday leave, paid vacation, sick leave, and more. 

4. Forms and Policies

An HR compliance tool gives access to a library with 100+ workplace forms and policies. Besides, the best ones support multiple languages to cater to employees’ needs for various countries. The forms and policies can also be saved in PDF format.

5. Employee Management

This section documents all best practices and legal compliances necessary for managing current employees.  

6. Safety and Health

Activities like smoking, doing drugs, and bringing alcohol at workplaces are strictly prohibited. Every company has policies that explicitly lay down guidelines on drug and alcohol consumption, violence activities, and more. 

7. Staffing

This section contains information related to recruiting, hiring, and doing background checks of new employees.