The rules are there for a reason.
Grumbling about the many rules and regulations involved in health and safety, human resources, and other business governance requirements is part and parcel of being a business owner. For many of us who just want to get on with the job, the box-ticking can seem excessive.
Many Emendas clients do question the need for some compliance requirements. And here’s the thing: to our clients, who are responsible and ethical business owners, they might indeed be a little over the top. The problem lies in the fact that for each rule, there is a reason—and the reason is that someone, somewhere, has been endangered or mistreated by an employer. Not all business owners are good people, and the H&S and HR laws in place ARE necessary to protect employees from those who seek to take advantage of them or endanger them.
You’ve probably heard about the closure of Today FM and the rather unceremonious letting-go of quite a few high-profile journalists. The abruptness of the station closing down left many feeling upset and even betrayed, in a very public way. This particular example of disastrous HR practice has been high-profile due to the nature of it (happening live on radio), but similar situations happen in New Zealand workplaces every day. This incident outlines the need for quality, compliant human resource management—and you wouldn’t have to look far to see health and safety-related incidents that demonstrate the need for compliance in that area.
Good and compliant business governance practices will:
- Protect the rights and safety of employees and stakeholders.
- Ensure fair and ethical business practices.
- Promote social responsibility and environmental sustainability.
- Prevent fraud, corruption, and other illegal activities.
- Uphold the rule of law and maintain public trust in institutions
The risks of non-compliance
Deciding to throw caution to the wind and ignore HR or H&S legal obligations is ill-advised at best. But there are plenty of business owners who do it! They are putting their business at risk in a variety of ways including:
- The possibility of legal penalties, fines, and sanctions.
- A likelihood of reputational damage and loss of customer trust.
- Higher employee turnover and morale issues.
- Increased regulatory scrutiny and oversight.
- Business disruptions and loss of productivity.
Additionally, there are the very real safety risks that come with non-compliance in the health and safety arena. To use a famous example, the Pike River mine disaster occurred not long after an audit process which found several non-compliance issues. And well over 10 years later, WorkSafe chief executive Phil Parkes says that company directors are still not meeting their obligations when it comes to health and safety best practices.
One consequence of failing to meet the standards of the Health and Safety at Work Act, often an alternative to prosecution, is an enforceable undertaking. These are agreements entered into by WorkSafe and a duty holder. They detail actions that the duty holder undertakes to respond to the failing and make amends to any victims. These are only available by application—and are not a get-out-of-jail-free card but a very important commitment to make things better.
The benefits of compliance
On the flipside, complying with employment law or health and safety regulations offers more than just a feeling of virtue. These standards are in place for a reason, and they specify the best and safest way to do things. Why not take advantage of this knowledge honed by oversight of millions of businesses and their mistakes?
If you’re a client of Emendas you have probably already heard our song sheet on the benefits of compliance. Here’s your reminder that those benefits include:
- Improving employee engagement, retention, and productivity.
- Enhancing reputation and building trust with stakeholders.
- Increasing innovation, profitability, and resilience through diversity and inclusion.
- Attracting and retaining investors who value ESG performance.
- Smoothing the path to various accreditations which improve marketability and open up opportunities.
You need not look far to find studies that demonstrate that employee wellbeing is linked to better productivity. Following employment law and health and safety standards that are intended to keep your people safe, healthy, and capable of doing their jobs to the best of their ability is always a long-term benefit.
How can I make sure my business is compliant?
For many businesses, failing to comply with the law as regards their human resources or health and safety practices is not about being unwilling but a lack of knowledge—or a lack of ability to parse and action that knowledge. Compliance requires education, often expert help, and ongoing effort to maintain.
Here are some simple steps to set you on the path to compliance:
- Educate yourself and your team on relevant laws and regulations. Continue to do so!
- Conduct regular audits and risk assessments to identify potential compliance gaps.
- Implement policies and procedures that align with your values as well as your legal obligations.
- Monitor and report on compliance metrics to ensure ongoing adherence.
- Seek guidance and support from experienced and proactive consultants who share your values and goals.
When compliance is woven into your governance systems and policies, it becomes much easier and more manageable. Laws do change, but the adjustments are usually small and come infrequently.
TL;DR: The why and how of compliance
Compliance requirements, whether in human relations or health and safety matters, can seem like unnecessary paperwork. But for each responsible, ethical business owner out there, there are plenty who need rules to keep them on the straight and narrow. Without laws, many employees are at high risk of mistreatment or injury.
Beyond ethics, compliance has benefits including:
- Improving employee engagement, retention, and productivity.
- Enhancing reputation and building trust with stakeholders.
- Increasing innovation, profitability, and resilience through diversity and inclusion.
- Attracting and retaining investors who value ESG performance.
- Smoothing the path to various accreditations which improve marketability and open up opportunities.
It’s important—and debacles like the recent Today FM incident demonstrate that. Here’s how you can get there:
- Prioritise education on the relevant laws and standards.
- Stay on top of things with regular audits to identify gaps.
- Make sure your policies and procedures align with both values and regulations.
- Monitor compliance metrics.
- Get help from the experts!
Get help with compliance
Emendas can help you to identify compliance gaps and develop tailored solutions that align with your goals and values. We know that no two companies are the same, and we can help you to construct frameworks—using what’s already there and working—to improve your governance.
Our expert guidance sees clients navigate complex compliance questions and regulatory frameworks, equipping them with bespoke systems with which they can take back control. This case study, for example, describes how we helped one organisation to create and implement top-notch formal internal processes This ensured compliance with relevant ISO health and safety standards ahead of the accreditation process. Their prequalification result went from 44% to 76% in three months, and continued improving from there.
Enhance your reputation and build trust with stakeholders—get in touch and get compliance help from our experienced team!