“HR needs to ensure it is fit for purpose in order to be proactive and maintain or develop its influence in the future.”
Keith Murdoch, Remuneration and Benefits Manager, – British American Tobacco
Did You Know?
According to CFO Research, approximately 60 % of the companies surveyed incur employment-related compliance penalties with some regularity. One-third reported having been fined or penalised in the last 12 months – an average of 6.4 fines or penalties each – due to noncompliance.
More than one-third of finance executives surveyed say their company’s approach to compliance is more reactive then proactive. Yet, 43 % agree their company would realize measurable benefits if it took a more proactive approach.
Did You Know?
65 % of finance executives believe reducing the number of touch-points and handoffs in employment-related compliance processes could increase efficiency and productivity at their company. In fact, 47 % of those surveyed cite improving existing compliance technology and systems as a top strategy for helping to improve employment-related compliance management.
A consolidated approach can help provide a more strategic, proactive view of employment-related compliance management.
A consolidated approach to employment-related compliance
Did You Know?
According to a survey conducted by CFO Research, 75 % of HR and finance business leaders surveyed indicate that they have no access to real-time, consolidated employment-related compliance data.
Managing disparate systems. According to the survey, more than 70 % use multiple, disparate systems to help manage employment-related compliance. The result is often a set of disparate systems, each designed to address individual compliance elements – but without effective communication or a connection between them.
When it comes to employment-related compliance, the lack of a single, unified view often makes it difficult to make decisions.
Without a consolidated approach to compliance – one that automatically tracks regulatory changes and employment-related compliance deadlines –HR and finance business leaders feel strained.
A consolidated approach can also help improve business process efficiencies, streamlining time-consuming management methods and freeing up staff time to focus on growth.
A proactive approach enables companies to better anticipate compliance changes, respond to and implement required changes faster and with greater efficiency, and streamline processes and staff time for employment-related compliance management.
A more proactive approach can also help companies avoid penalties incurred for non-compliance, and can lead to new opportunities to drive grow and ROI for the enterprise as a whole.
The top four potential benefits of improving employment-related compliance management are:
- More effective risk management
- Lower cost
- Avoidance of penalties or fines
- Shift of employee resources to higher-value activities
A more proactive approach can help reduce or eliminate these occurrences. For most companies, these savings, coupled with increased efficiencies, can lead to new opportunities.
A proactive approach enables companies to better anticipate compliance changes, respond to and implement required changes faster and with greater efficiency, and streamline processes and staff time for employment-related compliance management. A more proactive approach can also help companies avoid penalties incurred for non-compliance.
Did You Know?
Statistics show that one out of every three employers is penalised for errors in payroll and compulsory reports filed with authorities.
In most cases, comprehensive warranties offered are achieved through:
- a multi-level control and verification procedure for calculation results;
- mandatory internal audit of specialist calculations;
- professional liability insurance
- a Performance Bond program to guarantee customer service quality.
Offload Responsibility & Ensure Compliance, whilst alleviating the burden of noncompliance and impending deadlines
Forward-thinking, compliance-focused companies, that view employees as an asset, are redefining what is core to their businesses, and increasingly opt for the Collaborative Extended Enterprise Framework, taking advantage of the administrative and transaction processing capabilities of Business Process Outsourcing (BPO) shared services providers, who assume responsibility and liability for payment of wages and compliance with all rules and regulations governing the reporting and payment of taxes on wages paid to employees.
Are fully responsible for the accuracy and timeliness of calculations and guarantee cover of any financial damages incurred due to payroll-related errors and payment of any penalties and late fees charged by HMRC.
The Collaborative Extended Enterprise Framework mitigates exposure to penalty and interest charges for late-filed or -paid payroll taxes and sanctions for technical administrative or regulatory shortcomings, in addition, to reducing the internal administrative staffing requirements.
The Collaborative Extended Enterprise Framework is so much more than finding someone to produce your payslips.
It can provide an opportunity for companies to reduce costs and improve payroll management efficiency, and reduce errors. When employees are paid on time and accurately, employers will have a satisfied workforce and less queries.
Can protect you and your business from financial fines and penalties due to errors in payroll processing, calculation of payroll taxes and contributions, or late preparation and filing of compulsory RTI reports.
In this way they can rest assured that all their payroll administration and compliance management needs will be handled with precision and focus, while avoiding the overwhelming burden of legal and regulatory compliance on their time and resources.