If you think compliance software sounds like a dry topic, it really isn’t.
In HR making sure companies stay compliant is one of ‘the’ major ongoing concerns.
As Christopher Kiklas, VP of product management for UKG’s SMB HCM suite, recalls, on the days when he was running his own small business: “I didn’t realize there was a whole batch of new compliance rules I needed to meet when I hit having 50 employees – and my software didn’t warn me.”
The fact is, whether you are the CEO of a small company or an HR professional tasked with maintaining compliance – it’s a topic that never goes away. But for this very reason, it is also one that can be both emotional and draining.
Compliance is complex partly because the rules keep on changing.
Just think about the difficulty of complying with ACA, EEOC, and FLSA to name just a few.
You are expected to get it 100% correct and if you do not, errors (mistaken or otherwise), can lead to very painful penalties.
But this is where compliance software can be a wonderful thing.
To the extent software can take the burden off your shoulders, it is a blessing.
However, it’s only a blessing if it works.
As Matt Gotchy, EVP marketing at Trusaic, an HR compliance vendor, says: “You need to ask the hard questions. Bring in your subject matter experts to scrutinize the methodology. Don’t just assume the vendor has the capabilities you need. You need to take extra care when choosing vendors offering compliance software.”
For any software purchase, you will want to consider features, costs, and support.
But for compliance software especially, the following six factors should also play a prominent role in your buying decision:
UKG’s Kiklas would add another point: International capabilities. When he was running his business, he had employees in both the US and the Philippines.
This meant he needed to comply with regulations in both countries. If you have employees in different countries, you need to ensure your compliance software can handle all those jurisdictions.
Assuming you have found the right vendor then it’s up to HR to handle their side of the bargain.
To a large extent, this means that HR has the processes to ensure the right data is being collected, the software is used properly, and reports are submitted on time.
This means you’ll need:
I would argue the last bullet point deserves particular emphasis.
You cannot expect leaders to know what is involved in HR compliance. You need to make it clear to them what’s involved and what is at stake.
Both Matt Gotchy and Chris Kiklas stress that you should look for compliance software that informs you what needs to be done, handles as much as possible for you, and tells you what it’s done.
Take your time to assess the different vendor offerings because your future peace of mind will depend on just how good they are.
