The Benefits of a “Compliant” HR Organization
The Benefits of a “Compliant” HR Organization

The Benefits of a “Compliant” HR Organization


We’ve all heard the word before – often in relation to “Sarbanes-Oxley”, but chances are you’ve never considered whether your HR organization could benefit from becoming compliant.

Becoming “compliant” means that an organization has agreed to conduct their business according to an acknowledged set of rules – rules that focus on four things:

  • Auditing business activities
  • Exception management
  • Transactional alerts
  • Automated workflow

If you agree that these 4 processes are generally good for the overall health of a business, wouldn’t you also agree that they’d be equally good for the operations of an HR organization?

Over the past few years, HR departments have willfully begun to adopt “compliancy” solutions – solutions that were previously thought to apply only to the financial side of a business. And when we investigate why this is happening, we learn that compliancy software provides an HR organization with the following two benefits:

  • Better decision-making & improved efficiency. The process of defining compliancy rules typically HR Complianceresults in the identification of HR “best practices”, and a system that enables & enforces these practices can only benefit an HR staff.
  • Improved employee relations. So much of HR concerns employee communications – and so much of compliance is about “keeping people informed”, so the implementation of a solution that fosters better communications is an obvious benefit to HR.

So – with these rather clear benefits, one is tempted to ask why isn’t every HR organization clamoring to adopt a compliancy solution?

The answer – historically – has been that compliancy solutions are either too expensive to purchase, too complex to implement, or both.

Fortunately, that answer is no longer true.

Enter “Business Activity Monitoring” (BAM) software. BAM arose out of the direct need for cost-conscious organizations to automate the four processes that embody the drive for compliance.

BAM solutions automate the monitoring of HR business data; exactly what conditions are monitored are determined by each organization’s HR department and are based on their HR business model, their industry, and any compliance regulations that exist there.

BAM’s ability to analyze HR data approaches that of interactive “slice and dice” solutions, so that trends, exceptions, and even cross-departmental analyses are possible. BAM also includes the real-time delivery of relevant data, whether those communications are as simple as a short text message to an employee’s cell phone saying “we just changed your withholding as requested” or as sophisticated as an emailed “overtime trend report” backed up by historical analysis.

And BAM extends beyond communications to the actual automation of pro-active business processes – such as disabling the option for overtime for any employees who have already recorded more than ‘x’ hours of OT so far this month.

But what really sets BAM solutions apart from other compliancy-support systems is their low price point and exceptionally low total cost of ownership. BAM solutions can be adopted for less than $2,000 per company – and rarely exceed a maximum cost of $10,000.

Compliance gives HR organizations greater visibility into their everyday business activities. It gives them faster recognition of – and an ability to respond to – exceptions in daily HR tasks. And compliance pushes HR organizations to define “standards of operation” that yield the best possible business results – both for your HR staff as well as for the employees you serve.

And so, given the choice between adopting an HR compliancy system and not adopting one, the potential business benefits to adopting HR compliance make that an easy decision. And with the advent of Business Activity Monitoring solutions, HR organizations can now make the choice to become compliant in a manageable, cost-effective manner.

If you have questions about how your HR organization can become compliant, we’re here to help.  Give us a call at 949-583-9500 or email us at

Share This Post