Is Technology Making Statutory Compliance Better or Worse?

Is Technology Making Statutory Compliance Better or Worse

Is Technology Making Statutory Compliance Better or Worse?

The landscape of business is undergoing a rapid transformation. The current global situation has also been responsible for quick changes in the way organizations do business. Organizations have quickly adapted to newer technologies that can help various aspects of their organization function better. An area that requires looking into is the application of technology in the field of compliance in organizations.

Compliance

Compliance is a major aspect of how organizations do business. It refers to the process and practice of conforming to a set of rules, laws, standards, or policies. There are primarily three kinds:

  • Regulatory Compliance:  Regulatory compliance refers to the adherence of rules as stated by a regulatory body under the mandate of a state or central government.
  • Statutory Compliance: Statutory compliance refers to practices of a company to stay compliant with laws passed with a local, state, or central government. The practices taken up by employees and the management of those practices by higher-ups are called statutory compliance management.
  • Legal Compliance: Legal compliance refers to compliance with all laws concerned with the business processes and activities carried out within an organization. Businesses have to consistently adopt new technologies and practices to stay compliant as rules, laws, and regulations are constantly subject to change.

The Impact of Technology in the Workplace

Technology helps in a multitude of ways in the workplace, depending on how it is implemented. For instance, technology can

  • Automate certain manual processes and workflow
  • Organize, store and analyze data
  • Streamline the reporting process
  • Create a platform to engage with employees and stakeholders

The Role of Technology and Compliance

Given that technology has a wide variety of uses, here are some of the ways technology can help in compliance in organizations.

Risk Assessment

One of the key areas where technology can help in staying compliant is that of risk assessment. Risk assessment can help in analyzing, forecasting, and facilitating prioritization of processes and resources. It helps managers decide on initiatives and outcomes and the risks that those initiatives might face. For instance, while dealing with statutory compliance management, managers can identify risks to a business or organization, assess areas that will be affected by those risks, the extent of the damage, and the visible gaps in business processes.

Tracking 

Tracking is another way technology helps organizations in staying complaint. For instance, payroll compliance managementis one of the areas that is greatly benefited by technology. Using the best payroll services and software, managers can get the best experience when handling an organization’s payroll. Managers can effectively track employee data and documents. This becomes necessary on so many fronts such as taxation or new compliance requiring a specific set of documents, taxation purposes, or even employee promotions.

HRIS 

HR information systems are a boon for managers for communication purposes. The HRIS can do a multitude of functions. For instance, when an organization has to communicate certain initiatives that will enable employees to be more compliant or something concerning new business practices within an organization, HRIS can rapidly and effectively disseminate information. It also helps in labour law compliance­ by clearly stating laws and regulations that the company and employees are supposed to follow.

Training Systems

Technology can help organizations effectively train employees. For instance, according to certain statutory compliance management protocols, certain employees have to undergo a certain number of training hours to be eligible for promotion or be ready to handle new processes, technology becomes a massive help. It allows organizations to plan, decide on the content, and conduct effective training programs to draw the best out of their employees.

Which technology in compliance management may have its naysayers; it does immensely aid in keeping organizations compliant.

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