"What bogeyman is going to get me if I am out of compliance?" This was a great question by a client when we were discussing his HR audit results.
Think of HR compliance like a bicycle helmet. According to the Insurance Institute for Highway Safety, there were 776 bicycle deaths in 1974, and only 429 in 2010. The National Highway Traffic and Safety Administration reports a similar reduction in bicycle related injuries, dropping from 61,000 in 1995 to 38,000 in 2011. These reductions are linked, in part, to the increased use of bicycle helmets during those periods.
However, with millions of kids (and adults) riding bikes every year, the risk of not wearing a helmet seems pretty low. Yes, if you are in an accident without a helmet, the risk of injuries associated with the accident are much higher, but the odds of being in an accident at all are not really that high. But who wants to be the parent of a child injured unnecessarily when something as inexpensive and easy to implement as a helmet might have prevented it? No one! That's why virtually every kid (and adult) I see ride by in my neighborhood has on a helmet.
Even though the Department of Labor has added auditors since 2010 and has increased its audit activity, the odds of your company being hit with an audit by the DOL or another federal, state or local agency responsible for HR compliance are relatively low. But the costs associated with remaining in compliance are low as well. The costs of being out of compliance could be painfully high. And paying these costs can be extremely frustrating when thinking back on how easy it might have been to avoid them.
A simple HR audit can help determine your risk and the steps to mitigate the most common sources of fines and penalties are relatively easy to mitigate. Why ride your bike without a helmet?
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