The Benefits of Maintaining Compliance for Your Business

Compliance is not easy to manage. Just the word ‘compliance’ is seen as a burden by some companies. And it instills fear such that many in the corporate world have the scariest things to say about the results of not adhering to compliance. Yet have you wondered what could happen if you took care of compliance for your business? Or if someone, a compliance consulting firm, puts in all the hard work for you, managing it at both statutory and regulatory levels so you do not have to worry about compliance anymore? We will be discussing the benefits of compliance in this blog. 

What Is Statutory Compliance? 

A framework established by the Government to bring about uniformity and fairness to how a business treats its employees, what financial practices it follows, and what HR policies it implements is called statutory compliance. Therefore, HR statutory compliance is a subset of statutory compliance and labor law compliance is another subset within HR compliance. On the other hand, regulatory compliance is the framework proposed by government agencies and bodies for businesses to comply with, in a particular industry.

Benefits of Compliance for your business

  1. No fines or legal charges

Compliance with the rules set by the government helps a company save a lot of money and time by steering clear of legal accusations, which might require them to go to court and a lot of money in penalty, to be paid to either the government, other bodies, or their employees. Such accusations can also malign the good name of the company.

  1. Increased productivity

A compliant business is also more productive. Let us see how. When you have achieved compliance, you will be building a workplace that is safe for everyone, regardless of their gender, sexual orientation, race, religion or other markers that set people apart. Eventually, a safe and congenial work environment will be much appreciated by your employees, increasing the productivity of the entire workforce. 

  1. Reduces financial risk

The financial risk is low when you are compliant. This is because you are following the guidelines set by the government even as you scale, a government that has been guiding businesses like yours for several decades. No matter who your financial advisor is, we are sure they will agree too.

  1. Company’s reputation improves 

The company’s reputation not only stays intact but also improves over time. People working in the company will be happy that their salaries are paid on time, their work hours are normal, and they are getting the benefits they deserve. By word of mouth and by reviews posted online on social media and other platforms that share reviews of companies, the reputation of the company continues to improve. 

  1. Makes company eligible for benefits 

The Government of India too offers businesses benefits that they can avail. There will be subsidies too that they can claim. But businesses need to be compliant with the laws set by the government to ensure that they can claim them on time and benefit from them and grow, and in the process make the country grow and become worthy as an industrial hub too.

  1. Improves employee and customer retention

Retain your employees for longer by ensuring statutory and regulatory compliance. Keep them happy with the right salary, paid on time, and with the right benefits and a great leave policy too. Make sure that they remain satisfied with the company’s internal policies, whether it is with regard to hiring, management of the workforce, or even training.

  1. Wins the trust of investors and stakeholders 

Investors and other management-level stakeholders will be convinced that the faith and the trust they had put in the company is paying off. They will quote the actions taken by the company without any hesitation, knowing that it will only earn them a good name too, given that the business is fully compliant with all laws. 

  1. Operational efficiency

Compliance is also a way of working better. When a business is compliant with the rules and regulations set out by the state and central governments, then the operational efficiency of the business also improves. Though there is a cost to establishing and maintaining compliance, it is a cost that proves worthwhile for the business because of such efficiency gained. 

  1. Data security

Compliance will help protect data from unauthorized access and eventually usage, any kind of alteration that can lead to inconsistencies in the business processes or damage to reputation, or complete loss of data, which can bring the business functions to a halt. Data compliance is just as important as other forms of compliance like labour law compliance. 

  1. Helps society and the world too

The benefits of compliance do not stop there. Compliance can help the society you are contributing to too, as you build communities and encourage development through goodwill. Your compliance with environmental laws can also help ensure sustainability and make sure that the world benefits from business compliance.

Compliance Needs You and You Need Compliance

As we have seen, the benefits of compliance are many. Compliance is not just a set of rules. A company’s destiny is decided by how much it adheres to compliance. In this sense, compliance is something that defines a company’s manifesto, as it were. It defines what the company can offer its employees and customers. A culture of cohesion and cooperation is created at the workplace which allows people in the company to perform at extraordinary levels of activity and yet be accommodating, congenial and friendly for everyone. 

And to ensure that all of this happens, you really need a compliance partner, one who understands compliance well and is up to date with the laws prescribed for businesses, implementing them to benefit the business. But that’s not all! A good compliance partner will also be honest enough to warn the business when it is not compliant. Doing all of these will simplify day-to-day tasks and benefit the business in ways we have already mentioned in this blog. Outsource compliance to regain your peace of mind. Have you already started your compliance management journey with the right partner?