How to achieve 100% regulatory compliance?

For some, “regulatory compliance” is associated with a bureaucratic nightmare, for others - with the guarantee of order and security in the company. One thing is certain: you cannot afford to ignore this issue. Non-compliance is a simple recipe for financial penalties and image losses.

Modern HR tools can help you manage compliance and streamline the entire process. How to do this using SAP solutions? Read on if you want to know how to avoid costly mistakes and make sure your organization operates within the law — stress-free and hassle-free.

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Challenges in ensuring compliance

Before we get to the solutions, it's a good idea to understand what challenges you face. The complexity of legal regulations is something that can be a challenge even for the most experienced HR leaders. Regulations often change dynamically, and additional challenges may arise depending on the industry or the specifics of the business. These include issues related to employment, wages, personal data protection and compliance with labour standards.

Another challenge that complicates the situation is globalization and remote work. Scattered teams and frequently changing regulations can lead to significant organizational difficulties. Failure to comply with legal regulations is not only a legal threat, but also the risk of losing the company's reputation, which can have more serious financial consequences than just the penalties themselves.

If you want to better understand what benefits modern HR systems offer, read our article: SAP SuccessFactors: How Digital Transformation Is Changing HR

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Features of modern HR tools

Your greatest support can be technology, which effectively helps to cope with the complexity of processes. Modern tools such as SAP SuccessFactors offer comprehensive solutions that simplify HR management. With process automation and integration, you can be sure that your organization is operating according to the regulations, while increasing its efficiency.

Compliance Automation.

The introduction of a system that automatically updates policies and procedures in accordance with the latest regulations allows to eliminate the risk of missing legal changes that can lead to serious financial consequences.

SAP SuccessFactors offers such solutions by monitoring changing regulations and adjusting HR processes in real time, ensuring continuous compliance with legal requirements.

If you want to learn more about how SAP SuccessFactors can improve HR processes, we invite you to read the article: What are the benefits of business process automation in HR?

Accuracy of data.

Acting on inaccurate or incomplete data can lead to serious consequences. An integrated HR system — SAP SuccessFactors provides always up-to-date, compliant and easily accessible employee information. This is a time saver and an effective way to minimize the risk of costly mistakes that can negatively affect the functioning of the company.

Monitoring and reporting.

The tools available in SAP SuccessFactors enable you to generate reports and analyses that are necessary to meet legal requirements. This gives you full insight into the current situation and can react immediately to possible threats or irregularities.

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How does SAP SuccessFactors support regulatory compliance?

After discussing the most important features, let's take a look at how SAP SuccessFactors can support their implementation in practice.

SAP SuccessFactors Employee Central

It is the heart of the HR system. This tool allows you to manage employee data in a way that complies with legal regulations around the world. This ensures that every employee, no matter where they are, is treated in accordance with local law. You can track and manage information such as salaries, hours, contracts, and more, all in one place. This tool eliminates the risk of errors and ensures that your organization operates in accordance with the regulations.

SAP SuccessFactors Compensation

Source: SAP Materials. SAP SuccessFactors Compensation module.

Regulations regarding wages, overtime and other aspects of payroll can be complicated and vary from location to location. SAP SuccessFactors Compensation ensures that all payroll decisions are made based on current regulations, minimizing the risk of non-compliance. Moreover, this tool helps in transparent salary management, which further strengthens employees' trust in the organization.

SAP Success Factors Learning

Compliance training is a legal requirement, as well as an excellent opportunity to minimize the risk of errors and misunderstandings. This module allows you to manage and document the training of employees, ensuring that each one is well educated in this aspect. You can easily monitor who has completed the required courses and who else needs to work on it.

Best Practices in Compliance Management

Now that we know what tools we have at our disposal, it is worth considering how to make the most of them. Here are some practical tips:

Regular updates and training

Make sure your HR team is always up to date with the latest regulations. Regular training and system updates are essential.

Continuous monitoring and audits

Compliance is a process, not a one-time task. Regularly monitor and audit your systems to ensure they are performing as expected.

Involvement of leaders

Effective implementation of the compliance policy requires the active involvement of the management board. It is important that leaders understand their role in shaping and fostering a culture of regulatory compliance in the organization.

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Summary

Managing compliance doesn't have to be difficult if you have the right tools. SAP SuccessFactors is an end-to-end solution that helps automate, monitor, and report compliance, minimizing the risk of errors and ensuring your organization is operating in compliance.

Prevent compliance issues before they become a barrier to your business growth. Invest in modern HR tools!

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