Dive Brief:
- Compliance outside of HR is a major concern within the accounts receivable management industry, yet many employers in the ARM business fail to see how compliance and HR must work together for success, according to an article at InsideARM.
- HR's days of existing as a "hiring and firing mechanism" have long disappeared, writes Stacy Spradling, senior vice president of HR for Radius Global Solutions. Employers operating that way either have an underperforming HR function or are oblivious to today's realities.
- Spradling says it's "risky and irresponsible" to ignore HR's compliance role, and employers whose HR leaders do not have the proverbial seat at the table may not understand where or how HR and compliance intersect.
Dive Insight:
Spradling says making the HR-Compliance connection comes down to answering three basic questions: Do we want employees who are compliance-minded? Do we want to have a culture of compliance? Do we want accountability when it comes to compliance? The answer to all three is yes.
To get there, basic steps include initial and ongoing compliance training, as well as establishing a culture of compliance, which requires an organization that "lives the culture, speaks the culture, champions the culture and embraces the culture," Spradling says. The HR team should also ensure that compliance is integrated into annual goal setting, corporate communications and company branding.
Spradling writes that ARM employers must hire talent that already has a compliance mindset. When cross functional teams collaborate on mission critical processes, relationships between departments develop in ways that will lead toward process improvement, better compliance and, as a result, profitability.
