Regulatory compliance is essential to running a successful and sustainable business or staffing agency. As the staffing crisis continues, many recruiting agencies find themselves struggling to manage compliance with state and federal requirements.
Why Regulatory Compliance Is Important
Some companies choose to prioritize other areas of their business, such as revenue generation or marketing, over regulatory compliance, which can be complex and costly. It can be particularly challenging for small businesses or those without dedicated compliance staff.
However, entrepreneurs who prioritize compliance and take steps to maintain it can avoid legal issues, protect their reputation, ensure safety and security, access funding and contracts, and stay competitive in their respective markets.
I consult with entrepreneurs to help them stay on top of regulatory compliance while still running their business. Here are four strategies to help your company or agency stay on top of compliance.
1. Make Compliance A Priority
The first step in maintaining compliance is to make it a priority. This means understanding the relevant laws and regulations that apply to your business and allocating the necessary time and resources to ensure compliance.
During a typical busy workday, this might seem nearly impossible. That is why I encourage leaders to delegate compliance responsibilities. Could you delegate some of the responsibilities to your employees or to consultants?
2. Know The Current Regulations
To stay compliant, you need to understand the relevant regulations and laws that apply to your industry. We regularly review and update our knowledge of relevant state, federal and industry-specific regulations.
One important aspect of regulatory compliance is data privacy and protection. Staffing agencies receive personal information from candidates. We take the protection of such information very seriously and make sure we’re following all applicable privacy laws and regulations. This includes getting consent from candidates to collect and use their personal data, maintaining secure data storage systems and ensuring that data is only accessed by authorized personnel.
3. Be Careful About How You Classify Workers
Misclassifying workers as independent contractors instead of employees, or vice versa, can result in compliance issues related to taxes, benefits and labor laws.
It is important to implement regular training for staff on compliance-related issues, such as data privacy and protection, anti-discrimination laws and tax withholding requirements. Also, a system for regular audits and reviews to ensure ongoing compliance is important.
By training your staff on compliance and regularly reviewing your processes, you can maintain a strong track record of regulatory compliance and minimize future legal risks.
4. Pay Extra Attention To Anti-Discrimination Laws
Make sure your business provides equal opportunities to all job candidates. One way we do this is by carefully reviewing job descriptions and requirements to ensure that they are not biased or discriminatory in any way.
By implementing these strategies, you can help your company stay compliant. Remember: Compliance is an ongoing process. You need to stay vigilant to ensure you keep up with changing laws and regulations. Our firm can assist you with Regulatory Compliance.