Why Internal HR Compliance Matters

At Emerald Software Group, we place a high value on ensuring our products support compliance with external regulations at both the state and federal level. However, that’s not the only area where you should be concerned about consistency in your HR processes.

What Might Happen If Steps are Skipped?

KPA, a risk management and compliance consulting firm, tells a chilling tale of what can happen if managers fail to follow an employer’s own, internal policies in hiring. KPA was subpoenaed to testify against a client. This particular employer had used the firm to screen job applicants in the past but had overlooked this step with a new hire who turned out to be a habitual substance abuser with a long track record of auto accidents. The employer was on the hook for millions in damages when the employee caused a drunk-driving crash in a company vehicle.

How Did this Occur?

HR was unaware that the screening had even been skipped because a company supervisor hired the employee! There’s something enormously wrong with a company that does not have safeguards in place to ensure all hiring is done by the professionals in HR who are trained to keep the employer in compliance. KPA makes several good suggestions for how to limit this type of risk. Their first suggestion is to use software that enforces internal rules for screening every new hire. They go further to state that software should be used to automate the entire hiring/onboarding process. We agree.

Fortunately, Universal Onboarding is designed for precisely this type of situation. With this software enforcing proper forms completion, no new hire can slip through the cracks and end up sidestepping your company’s background check process. Plus, automating the transmission of new hire data to a screening partner cuts the administrative labor costs for HR to actually get background checks done.

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