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Corporate Compliance Insights
Home Compliance

Top of the Class: How Investing in HCM-Related Compliance Can Help Your Business Achieve its “A-Game”

by John Motz
June 17, 2015
in Compliance
Top of the Class: How Investing in HCM-Related Compliance Can Help Your Business Achieve its “A-Game”

For the last three years, ADP®, a leading global provider of human capital management (HCM) solutions, has collaborated with CFO Research, a branch of CFO Publishing LLC that provides insights on business issues.  Together, they sought ways to better understand how companies approach HCM-related compliance management.  As the regulatory landscape continues to increase in complexity, HCM-related compliance is front and center for the C-suite – helping to shape the way leaders conduct business, make strategic decisions and think about the future.

In previous surveys, we looked at how HCM-related compliance ranks as a strategic priority and the benefits it can contribute to business success.  This year, the survey explored how HCM-related compliance systems can help organizations “get better at getting work done.”  For example, how can an integrated, accessible compliance system help a company improve the way it manages resources, makes decisions, increase employee engagement and enhance customer satisfaction?

Our latest research revealed that compliance-related information is an important asset for businesses – 70 percent of survey respondents (comprised of senior finance and human resources executives at mid-sized and large companies) say their management team reviews HCM-related compliance data as it makes business decisions at least some of the time.  Yet, despite the value HCM-related analytics can provide, 44 percent of survey respondents say their business still relies on multiple, disparate systems to access this information.

Relying on too many systems can make HCM-related compliance management extremely difficult.  Rather than focusing on managing compliance, finance and human resources professionals can often get caught up in managing their technology.  Employees can have trouble accessing the information they need, and it often takes too long to input data when working across several platforms.  When asked to grade their HCM-related compliance systems in terms of how easy they are to use, 58 percent of respondents gave a grade of C, D or F (i.e., an “average” rating or lower).  Clearly, many companies are falling behind instead of moving to the top of the class when it comes to managing their HCM-related compliance needs.

What can be done to help close this gap?  Survey respondents said they would like their HCM compliance systems to provide accurate and consistent reporting, have access to key metrics and data and share real-time information across multiple locations.  Leveraging technology, like cloud-based solutions, can help close this gap by allowing business leaders to focus more on effectively managing compliance and having one easy and enjoyable experience while doing it, instead of worrying about their technology and systems.  In the process, using technology that provides alerts and enables action, rather than asking users to shift through endless data and reports, can help companies reduce the frequency and likelihood of errors.

Overall, survey respondents recognize that change is the first step toward making HCM-related compliance management easier for their business.  Forty-one percent of respondents say their company needs to improve their existing technology system, and 32 percent acknowledge that they need new technology.  For companies that have made this investment, they say one of many benefits is they now have more time to focus on the value-added activities that give their businesses a leg up over the competition.

In closing, this survey revealed the potential return on investment when investing in a quality HCM-related compliance system.  Ultimately, it can help save your business time, resources and money and help provide a foundation that your business needs to achieve its “A-Game.”


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John Motz

John Motz

John MotzJohn Motz is the Vice President of Product for ADP Added Value Services, where he oversees product strategy and direction.  Prior to joining ADP, he led product innovation at Intuit for 13 years and worked for several years in the financial services industry.  John has a passion for creating products that solve big problems with simple solutions that connect with customers’ emotion.

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