What are compliance risks?
Compliance means conforming to a rule or regulation. Compliance risk refers to the legal/financial penalties that one might have to pay if they don’t act under regulations. The organization or the government could set these regulations.
Since it’s essential to avoid compliance risk, the rules and regulations must be well-defined. Companies must communicate information like the risk rating, obligation and invested parties, and penalties for non-compliance with the employees.
Challenges of compliance in remote work
Some challenges faced by organizations to ensure compliance during remote work are:
– Monitoring payroll
– Staying secure
– Clearly defining security rules among onboarding employees
How to minimize risk in a remote workforce?
As the world is grappling with the new normal of remote work in the COVID-19 pandemic, we have to keep up with the times and minimise compliance risk in a remote workplace. Compliance services can do this job.
When a company employs people or a company to help them ensure that companies comply with rules and industry laws, it is called compliance services.
Some of the ways how supervisors and managers help minimise compliance risk are:
- Communicate protocols and guidance to employees- There are two critical areas of compliance that supervisors can directly impact:
– Time tracking and reporting: This involves making sure that the employees know how and when to report their time. It also ensures all employees that the organization will pay them for all the hours they’ve worked.
– Compensable and non-compensable activities: This involves guiding employees on which activities are compensated for and which are not. The distinction between the two is much easier when employees are working from the office. However, the difference can blur when employees are working remotely.
Communicating the above two points to the employees can help an organization minimize compliance risks as the employees will know which rules to adhere to.
- Explore technological solutions- Since reporting accurate working hours is the most cumbersome task to measure and keep track of in remote work, organizations can explore numerous technical solutions to achieve this objective. Some options include:
– Creating a mechanism through which employees can quickly record the time spent on compensable activities.
– Using software with a timer function.
– Using ‘thin client’ computers that require employees to log in to work.
- Creating schedules for employees- Working from home can often mess up the schedule that is often more easily followed in a workplace setup. An organization can minimize compliance risk by creating detailed schedules for its employees. These schedules can have time allocated to lunch breaks, rest breaks, etc. An organization can use shared calendar programs like Google Calendar to share the plan with everyone.
- Safe sharing of information- Securely sharing information is a priority in all organizations. All forms of conversations, like email, texts, etc., between the employees must be secured. However, it has become even more critical considering many employees are now using their laptops, computers, and internet connections in remote work, which are more prone to data theft and invasion. You can ensure compliance by communicating with the employees all the preventive measures to keep the information and exchanges safe.
You can also ensure that the employees follow the rules and report their time correctly by conducting audits. It will help you measure compliance.
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