Why a Compliance Gap Costs Time and Money

 
 
By Karen A. Frenkel  |  Posted 03-16-2015 Email
 
 
 
 
 
 
 
 
 
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    Compliance Gap Causes Financial Drain
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    Compliance Gap Causes Financial Drain

    78% of surveyed CFOs said lack of integration of HCM-related compliance processes and information systems increases their company's compliance costs. 57% believe entering or updating data takes too much time and effort.
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    Poor Grades for HCM Compliance
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    Poor Grades for HCM Compliance

    58% of respondents graded the ease-of-use of their software systems and applications for managing HCM-related compliance a "C" or lower.
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    Real-Time Data Not Accessible
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    Real-Time Data Not Accessible

    42% of respondents do not have access to real-time, consolidated HCM-related compliance data through a dashboard or other technology platform.
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    Compliance Eats More Time
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    Compliance Eats More Time

    35% of respondents said they spend more time on HCM-related compliance today than they did two years ago, compared to 13% who said they spend less time now.
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    Decisions and Compliance Are Separate
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    Decisions and Compliance Are Separate

    24% of respondents said their company's management rarely or never uses HCM-related compliance data to support business decisions.
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    HCM Drains Company Resources
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    HCM Drains Company Resources

    The time and attention HCM related compliance requires drains their company's resources, according to 62% of those surveyed.
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    How Important Is Ease-Of-Use?
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    How Important Is Ease-Of-Use?

    80% of respondents said it's important to make their company's HCM-related compliance systems easier to use.
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    Room for Improvement
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    Room for Improvement

    Improving their technology and systems for managing HCM-related compliance would offer the most benefit to their companies, said 38% of respondents.
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    New Technology Desired
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    New Technology Desired

    26% of respondents said the greatest benefit to their company would come from investing in new technology. In contrast, 24% said consolidating or centralizing compliance activities would provide the most benefit.
 

A new survey on workforce compliance reveals one-half of businesses use separate IT systems or manual processes for compliance requirements. Systems to handle human capital management, such as paying employees, managing their time and administering their benefits, are called HCM processes. Businesses that use disparate IT systems are more likely to face penalties for noncompliance because their systems can't keep up with changing regulations. One-third of CFOs claim their staff spends increasingly more time on compliance, distracting them from their core business and reducing efficiency, the report states. Conducted by cloud solution provider ADP and CFO Research, the study surveyed 161 senior finance and human resources executives last December at American companies with 250 or more employees. It examines approaches to HCM-related compliance and the value of making compliance systems user-friendly. "This research shows that finance and HR teams are increasingly looking for unified, secure compliance solutions to help them drive business efficiencies and create the conditions for sustained growth," said Celina Rogers, vice president and editorial director of CFO Publishing.

 
 
 
 
 
Karen A. Frenkel writes about technology and innovation and lives in New York City.

 
 
 
 
 
 

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