compliance issues continue to create concernsADP’s survey of HR managers at small and mid-sized companies has revealed that at least half have mounting fears regarding compliance issues facing their companies.

“Since HR compliance lies at the heart of effective human resource management, it is alarming to discover that most HR managers surveyed express concern about their ability to comply with HR laws and employment laws today and into the future,” the study intoned. “Roughly half of our survey respondents indicate having only moderate or slight levels of confidence — or even no confidence at all — in their ability to comply with important HR and employment laws, rules and regulations.”

Small businesses reported the highest levels of anxiety over compliance with 57 percent of HR professionals indicating that they lacked confidence in their companies’ ability to comply with the growing number of rules and regulations. Mid-sized businesses posted better numbers, but they still weren’t good. About 45 percent said that they had little to no confidence that they could keep pace with compliance issues.

Some areas where respondents expressed greater confidence in their ability to reach compliance goals were payroll and benefits laws and regulations, but they reported being less confident in areas such as hiring, employee relations, and risk and safety. The largest concern of mid-sized companies was managing employee relations with 49 percent citing it as a major concern. This was followed by benefit plan offerings/administration (36 percent), and workers compensation/claims administration (35 percent).

Small companies were most concerned with payroll taxes (40 percent), followed by recruiting and hiring good people (39 percent), and pay requirements (28 percent). In order to address the rising risks of noncompliance, many small and medium-sized businesses are turning to HR consultants for assistance. In fact, over 90 percent of survey respondents stated that they rely on outside advice for compliance issues.



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