Adhering to legal obligations and internal codes of conduct to ensure the health, welfare and safety of all organisational members is essential for businesses today. Failing to maintain HR compliance needs may lead to legal liabilities, while negatively impacting productivity and business reputation.
Know why any modern business must stay compliant with labour laws.
1. Avoid Litigations
One of the most obvious reasons why compliance is critical for businesses is to avoid legal obligations. This can significantly affect your business credibility and financial losses. GOHRBPO, an HR outsourcing firm in Singapore, will regularly update you on important changes in Employment Act and regulations and guide how to effectively handle staff issues and grievances.
They will emphasise the areas of non-compliance and provide end-to-end HR solutions – payroll services, leave claims, taxes, benefits, banking, etc. to ensure complete compliance. keeping track of different compliance requirements and adhering to the same can help your business avoid fines, penalties or even lawsuits.
2. Improve Safety and Operations Standards
Following high standards of safety and security measures at the workplace can help prevent injuries and accidents while improving employee satisfaction. HR compliance and a safer work environment make organisational members more dedicated and responsible towards their job roles.
3. Non-compliance May Lead to Reputational Damage
Warren Buffet’s famous adage goes like, “It takes 20 years to build a reputation and five minutes to ruin it.” According to studies, employees and stakeholders want to associate with organisations that have a strong market reputation and credibility. As such, reputational risk is one of the major challenges of any organisation. With comprehensive compliance functions in place and working with transparency, a business can build trust and integrity.
4. Focus on the “Why”
An organisation may be defined in three categories – what it does, how it does, and why it does. Staying compliant enables an organisation to focus on the most important part – “why” and likewise, determine a set of ethical principles and values that will guide business operations and its people.
5. Improve Employee Satisfaction
Staying compliant with operational and payroll regulations ensures employee safety at work as well as timely payment of salary they are eligible for – minimising grievances and other issues. This can go a long way in building employee loyalty and improving satisfaction.
GOHRBPO provides fully managed HR consulting and payroll outsourcing services, taking care of every aspect of human resources management and assuring complete compliance.