There is no doubt that human capital is the most important value for an organization. It enables its efficient functioning, constitutes innovation and potential for competitiveness. The position of HR Compliance is important from the point of view of the organization, because the dynamically changing regulatory environment, which employers found out especially intensively during the COVID-19 pandemic, is a real challenge. Ensuring regulatory compliance in an organization has become a more topical problem than ever, not only in the area of ​​employment law standards, but also in the area of ​​tax and social security regulations. Moreover, it is worth noting that the risk related to human resource management and the issue of the regulatory environment related to it is universal and universal risk, regardless of the sector of activity and the number of employees. Finally, it is the person who performs the work (regardless of the legal basis of employment) who is the subject of intellectual capital management of the enterprise or organizational units from the sphere of public law.

In the first place, we can understand the area of ​​HR Compliance as the risk of non-compliance in the area of ​​legal standards regarding HR issues, as well as the risk of human capital management (personnel risk). The personnel risk itself can be reduced to the risk of the organization (on the employer’s side) and the personnel risk related to the employee. An example of the materialization of the latter may be the employee’s decisions to take actions against the commonly established anti-pandemic regulations and the scale of their negative consequences for the decision-maker himself.

When taking up the issue of HR Compliance, it is impossible not to refer to the issue of its identification and evaluation. We can attempt to measure personnel risk by going through three main stages, the first of which is the identification of personnel processes in the organization and potential adverse events within each of them, the second – the assessment of the risk level, and the third – the analysis and identification of directions for limiting or eliminating risk. In order to pass individual stages, it is necessary to cooperate with representatives of various sectors within a specific organization – business lines and support areas. The risk analysis team should include representatives of the HR, compliance and legal departments as well as business department leaders.

The first stage of risk identification is to distinguish individual personnel processes (e.g. planning staffing needs or selection of candidates) and comparing them with potential unfavourable events – e.g. the lack of the competency profile of the candidates sought or the omission of legal obligations related, for example, to the priority employment of people dismissed as part of group layoffs.

The next step is the analysis of individual risks carried out according to the adopted methodology (e.g. in accordance with the risk assessment matrix, which takes into account the probability and effects of individual risks). Throughout the process, and especially when assessing synthetic risk, the 'risk appetite’ of a particular organization should also be taken into account. Finally, knowing the most sensitive areas and the acceptable level of risk, you can take steps to mitigate and optimize them.

In the first place, you can point to HR Compliance procedures and policies. These include both obligatory internal company acts and those that the organization adopts voluntarily. In particular, the remuneration policies, principles of fair recruitment, conflict of interest policies, talent management policies and anti-mobbing policy can be indicated here. The elements supporting HR Compliance also include internal explanatory proceedings, which are most often initiated in connection with the received notification under the whistleblowing system or as part of the procedures provided for in the anti-mobbing policy. Also, the whistelblowing system implemented in the organization is one of the solutions that help to detect at a relatively early stage actions or omissions that violate the applicable legal standards. Internal actions and educational campaigns promoting HR Compliance, at the same time explaining its role in the company, are also of great importance.

HR Compliance is therefore not only a system of actions aimed at ensuring compliance within the legal norms in the area of ​​employment, but also an area that allows to support personnel risk management, equipped with specific instruments. Proper operation of HR Compliance, whose individual elements consulted and implemented in cooperation with experts constitute a kind of protective umbrella and, at the same time, a safety valve for an organization operating in a rapidly changing legal and actual environment, at the same time sensitive to previously unforeseen pandemic risks.

Source : https://www.prawo.pl/kadry/hr-compliance-a-ryzyka-braku-zgodnosci-regulacyjnej-oraz,501786.html

Source:

CIOP-PIB

Projekt otrzymał dofinansowanie z Norwegii poprzez Fundusze Norweskie 2014-2021, w ramach programu „Dialog społeczny – godna praca”.