Human Resource compliance, a serious and costly issue for most entrepreneurs who usually focus solely on product and growth. The average entrepreneur can get sidetracked by the daily responsibilities of his or her business. So, now we must ask a critical question --
how do they know what issues to look for in order to protect their company? To answer that question we must explore the Top 5 issues entrepreneurs will experience if human resource compliance is non-existent within their organization. 

   1.  Unaddressed exposure to workplace litigation
Example: The EEOC(Equal Employment Opportunity Commission) released a study,which highlighted race and sexual discrimination as the most prevalent forms of workplace discrimination. These kinds of discrimination are disasterous to the social environment and cause a decrease in productivity. If the environment is extremely toxic, a combination of an ill-trained managerial staff when dealing with these these types of workplace discrimination and misinterpretation of all the employment law & policy; can and will lead to wrongful ter-   minations. Studies show that a company's legal costs in a wrongful termination lawsuit can run up to 85,000,and the winning plaintiffs receive average judgements averaging 500,000.

   2.  Not following current benefit regulations and laws

Think about it. Any small startup with anywhere between 0-9 employees, who offers retirement and even health benefits. Keeping up with these new laws and regulations can be daunting. There are steps, such as the following: required notices and documents must be provided to employees, and all government filings must be completed; the required test must be conducted; and plan provisions must be properly applied. What's even more daunting is just dealing with the names alone a soup of acronym after acronym. For example, FMLA,COBRA,HIPPA and a host of others. 

   3.   Multiple HR Compliance policies and procedures to follow with no qualified guidance.

For a majority of start-ups that operate with little or no additional employees at all. Usually, there is a person called an HR generalist,which is nice term for an individual who wears many hats. In addition, to taking on the responsibilities such as, compensation and benefits, HR management, labor relations, legal issues, staffing, HRIS, training, and much more. I believe the old adage still stands today "ignorance of the law is no defense" this definitely applies when a company is faced with an audit, an investigation from a government agency, and of course, litigation. These HR generalist who are spreading themselves thin can lead to wrong decisions about crucial employee issues and result in significant consequences for your business. 

  4.   Paperwork administration results in substantial errors

If a company doesn't have access to online services and must deal with hard copies,errors can multiply. For example, when an employee undergoes a life change status and alters his or her benefits selections, benefits and payroll must be adjusted accordingly, and within the legally required timeframe. All of these administration processes tend to live in different parts of your business, and yet they're utterly dependent upon one another to function under work environment. So, it is definitely crucial for administration to be equipped with the proper tools via online or through a reliable source to handle these employee changes with ease and clarity.

  5.  Lack of HR function coordination

The functions of payroll and benefits in regards to recordkeeping, and coordinating with both employee and vendor is a "rehashed" thought in the scope of an HR generalist daily responsibilities. Everything needs to work in sync. For the correct amount of deductions for benefits to be taken out of an employee's paycheck , accurate information must flow to and from payroll. If for whatever reason this does not happen. Employees like us(their bosses) notice errors and then only, then valuable time is wasted to implement corrections. I know, you're saying to yourself "Oh, but there is payroll software products now available". You're right. However, this still does not address the limited HR generalist ability to administer or integrate in a timely manner all of the payroll and benefit functions. One, of the obvious reasons, is that in addition to making the payroll software run properly according to your businesses monthly requirement to deal with compliance issues. You, as the owner,co-founder,founder will still need to schedule fielding calls communicate and transmit infor-
mation to their benefits recordkeeper. In addition the payroll software will need to be upgraded. Just imagine the amount of upgrades that are NOT covered by your original software warranty or contract. The cost can get out of control. No entrepreneur, especially of your caliber wants to deal with such a hassle. TRINET can provide the required service to push your business to what should be the best in online HR management.