Study Finds Only 33% of Employers Have Mature Employment Law Compliance Processes

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Study Finds Only 33% of Employers Have Mature Employment Law Compliance Processes

A major study from HR.com and the HR Research Institute has discovered that only about a third of organizations have well-established employment law compliance processes that employees fully understand even though complying with employment laws is not easy, according to “HR.com’s State of Legal, Compliance and Employment Law 2023-24” survey.

The study released in November 2023 found that just 33 percent of survey respondents say their organization’s legal compliance processes are “highly mature,” meaning that Human Resources (HR) processes are clearly mapped out and employees understand them well, leaving much room for improvement. Other major research findings include:

  • Less than 4 in 10 of the respondents agree or strongly agree that their organization’s HR-compliance-related processes use up-to-date technologies, are highly automated, and are part of an integrated system.
  • Less than half of the respondents (48 percent) rank their organizations highly in maintaining an up-to-date understanding of all HR-related compliance issues, leaving many organizations struggling to stay up-to-date.
  • Half of the respondents (50 percent) agree or strongly agree that their organization will place greater importance on compliance in the next two years.
  • Nearly 1 in 4 of the respondents (23 percent) say employment screening laws are an area of regulatory compliance that is one of the the highest concerns for HR departments in terms of tracking and managing.

“HR.com’s State of Legal, Compliance and Employment Law 2023-24” survey ran from July to October 2023 and over 200 HR professionals responded representing a broad cross-section of employers, ranging from small businesses with fewer than 50 employees to mid-sized organizations with between 100 and 1000 employees to enterprises with over 20,000 employees.

Dawn Standerwick, Vice President of Global Sales at leading global Human Resources technology company ClearStar, was one of the esteemed group of professionals to join “HR.com’s State of Legal, Compliance and Employment Law 2023-24” advisory board to help guide HR.com’s primary research and influence the HR industry’s thought leadership and best practices. 

ClearStar – which specializes in background checksdrug testing, and occupational health screening – offers “better, easier, faster, and safer” employment screening solutions that comply with federal, state, local, and international laws regarding workforce screening in the United States and around the world. To learn more about ClearStar, please contact us today

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    Thomas Ahearn - Digital Content Editor

    Thomas Ahearn is a Digital Content Editor at ClearStar, a leading Human Resources (HR) technology company specializing in background checks, drug testing, and occupational health screening. He writes about a variety of topics in the background screening industry including Artificial Intelligence (AI), "Ban the Box," class action lawsuits, credit reports, criminal records, drug testing, Equal Employment Opportunity Commission (EEOC), Fair Credit Reporting Act (FCRA), Form I-9, identity theft, privacy, social media screening, and workplace violence.

    At ClearStar, we are committed to your success. An important part of your employment screening program involves compliance with various laws and regulations, which is why we are providing information regarding screening requirements in certain countries, region, etc. While we are happy to provide you with this information, it is your responsibility to comply with applicable laws and to understand how such information pertains to your employment screening program. The foregoing information is not offered as legal advice but is instead offered for informational purposes. ClearStar is not a law firm and does not offer legal advice and this communication does not form an attorney client relationship. The foregoing information is therefore not intended as a substitute for the legal advice of a lawyer knowledgeable of the user’s individual circumstances or to provide legal advice. ClearStar makes no assurances regarding the accuracy, completeness, or utility of the information contained in this publication. Legislative, regulatory and case law developments regularly impact on general research and this area is evolving rapidly. ClearStar expressly disclaim any warranties or responsibility or damages associated with or arising out of the information provided herein.

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