Industry Research Summary: The State of HR Compliance in 2021

Improve compliance performance through better integration and automation

Regulatory compliance can be a tough area for HR because few notice when it is done right, but everyone notices if it is done wrong. How well are HR departments currently managing compliance? What can they do to better manage compliance?

A new The State of HR Compliance in 2021 study, by HR.com’s The HR Research Institute, looks at problem areas related to compliance, technology, and the investment of time and money in compliance.

Highlights from the survey:

Just over one-fifth (22%) of the survey respondents rank their organizations at the top of the maturity model, saying they have clearly mapped out processes that are well understood by employees. Another 38% say their organization is one step below and have documented and mapped out all processes so they are clear. We assume this means that they are clear to HR professionals and can be made comprehensible to employees as necessary.
 

Most of the survey respondents (82%) say that it is fairly or very accurate to say compliance processes in their organization are automated, and a similar number (84%) say the same about the integration of compliance processes.

Although we view this as generally good news, we should note that fewer than half say it is very accurate to say they have integrated or accurate systems, suggesting there is still room for improvement in most organizations.
 

 

Compliance is one of the areas HR can generally expect to be well-funded. More than three-quarters of respondents (77%) say compliance-related initiatives are funded to a high or very high degree. However, this high degree of funding likely comes with high expectations. Since compliance failures can be both expensive and embarrassing, it’s one of the things leaders expect HR to consistently get right.

Finding #4: More than two-thirds of respondents say their HR department spends more than a quarter of the average workweek dealing with regulatory and legal compliance

About 70% of the respondents say they spend more than a quarter of their average workweek dealing with compliance. About one-fifth (19%) spends 11%-25% of their workweek on compliance, and only 11% say that managing compliance takes 10% or less of their workweek.
 

To learn more about The State of HR Compliance in 2021 study and to get strategic outcomes and 8 key takeaways from this exclusive HR.com Research Institute research, you can read the complete report.