Risks of Non-Compliance and How it Affects Your Business

What Are the Risks for Non-Compliance?

small businesses. But the risks of non-compliance can surely leave any business owner shaking in their boots. The truth is, mistakes and non-compliance can cost you big. Here are a few examples of just how much non-compliance can cost you:

• Mistakes or Technical Violations on I-9 forms: $252-$2,507 for first offenses, and $1,161-$2,322 for second and subsequent paperwork offenses per violation.
  • According to Paycor, in 2019, ICE delivered 6,500 Notice of Inspections and reached $14.3 million in fines, penalties and forfeitures.
  • Up to $50,000 for employers with 15-100 employees
  • Up to $100,000 for employers with 101-200 employees
  • Up to $200,000 for employers with 201-500 employees
  • Up to $300,000 for employers with more than 500 employees

  In addition to the monetary cost of non-compliance, there are also intangible risks to consider, such as damaging your organization’s reputation with both consumers and employees, losing high-performing talent, and detriment to employee morale and satisfaction. While these effects can sometimes be difficult to quantify, their effect can often be felt long-term.

  Implementing Effective Compliance Strategies

  The groundwork for implementing a compliance strategy starts with identifying and understanding what regulations apply to your company and creating policies and procedures that adhere to those regulations. Much of this can be integrated into your Employee Handbook; it’s impossible to memorize every law and regulation, so having a detailed document like a handbook and easy-to-access procedures that you, your managers, and your staff can rely on and reference can help alleviate the burden of having to remember extensive processes and the fine details. Every employee is responsible for understanding expectations.

  

  compliance training for your managers. Trainings should be diversified and detailed but also interactive and relevant. You don’t want your managers to burn out, but instead, be motivated through transparent communication that lays out both the need and benefit of compliance training. Companies can do this by offering their trainings incrementally, presenting material that offers a reflection on real-life situations and contains exercises that can develop your staff’s existing skill sets and engage teamwork.

  Now, laying the groundwork for your compliance is not a “set-it-and-forget it” feat. As mentioned, regulations and laws are constantly changing, so dedicating a team or individual to overseeing compliance and auditing your policies and trainings regularly will help keep your organization up-to-date. Doing so will also help you identify any gaps or weaknesses in your policies or trainings, and allow you to quickly mitigate them.

  Do Not Underestimate the Importance of Staying Compliant

  

  ensuring your business operates compliantly. From recruiting and onboarding, performance management, employee handbooks, to workplace investigations, benefits administration, and employee training, we can help you implement best practice policies and procedures that are HR-compliant.

  Reach out to our team today to see how we can help you.

  Published on: March 29, 2022

  Updated on: April 20, 2023