Imagine running a business without any rules of engagement. The amount of disruption, confusion, chaos, and liability that would ensue would be a nightmare. Regulatory Compliance is more than a check-the-box activity – it’s a key part of being a trustworthy company in today’s market.
Compliance is complex and is an area where one size does not fit all and in fact, depending on the industry it can be an entirely different wardrobe altogether. When you run a business, you know how important it is to follow the rules and regulations that apply to your industry. In this blog, we’ll explain what regulatory compliance means, why it’s essential for your business, how it affects different industry sectors, and how augmenting your business operations with nearshore talent can help lessen the burden of regulatory compliance. Whether you work in finance, tech, healthcare, or any other field, staying compliant is not only a legal obligation but a smart way to build trust and credibility.
Why is Regulatory Compliance Important?
Let’s be honest – regulatory compliance is not the kind of topic that invokes feelings of excitement; some might view it as boring or overbearing on business creativity. This couldn’t be further from the truth – embracing regulatory compliance shows that you care about your customers, partners, and regulators. It protects your reputation, lowers the chance of legal troubles, and fosters a culture of transparency. On the other hand, ignoring compliance can lead to penalties, fines, lawsuits, and could even end your business. In short, regulatory compliance is the foundation of a successful, trustworthy organization.
What are the Goals of Regulatory Compliance?
The goal of Regulatory Compliance is to create a fair, ethical and transparent business landscape. As a business, regardless of sector, the goals of compliance should include:
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- Upholding ethical standards in business practices.
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- Mitigating risks associated with non-compliance.
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- Safeguarding sensitive information and ensuring privacy.
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- Prioritizing the well-being and rights of consumers.
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- Minimizing the impact on the environment.
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- Upholding fair labor practices and employee rights.
How Augmenting Operations with Nearshore Talent Can Help Alleviate the Burden of Compliance.
An alternative workforce solution is a great way to ensure you get what you need for your business at a more affordable cost. But even working with a alternative workforce solutions partner these days can become costly, especially when you want to ensure you’re working with the experts in what you need. This is where nearshoring is a great option. Nearshoring is the process of augmenting certain business functions to another country or region that is nearest to you–for example, Latin America for businesses operating in the U.S.
One perk of working with a nearshore partner, like Solvo Global, is that we operate as the employer of record for workers in our offices who complete work for North American businesses. Solvo handles all employee compliance matters pursuant to the law in the countries and cities in which Solvo workers are located. Solvo also delivers training and provides updates to those employees applicable to any work being done by our U.S.-based client.
Nearshoring saves businesses on recruiting and onboarding costs, overhead costs, and allows for greater flexibility within your workforce. Since your remote team is based in a neighboring region, it’s much easier for them to work within your business’s workday and work hours, making sure you have the compliance support you need, when you need it.
Compliance Regulations By Industry or Area
Different industries have unique regulatory landscapes. Let’s explore some inclusive, compliance requirements that some sectors need to be mindful of:
Financial Compliance
Financial institutions must comply with regulations like Sarbanes-Oxley Act (SOX), Payment Card Industry Data Security Standard (PCI DSS), and Dodd-Frank Wall Street Reform and Consumer Protection Act.
Healthcare Compliance
The healthcare sector adheres to regulations such as the Health Insurance Portability and Accountability Act (HIPAA) and the Affordable Care Act (ACA).
IT / Data Security Compliance
In the realm of IT, compliance involves adhering to standards like General Data Protection Regulation (GDPR) only applicable for the EU and the Health Information Technology for Economic and Clinical Health (HITECH) Act.
Environmental Compliance
Industries impacting the environment need to follow regulations such as the Clean Air Act and the Resource Conservation and Recovery Act.
Employment Compliance
Ensuring fair employment practices includes compliance with regulations like the Fair Labor Standards Act (FLSA) and the Occupational Safety and Health Act (OSHA).
Immigration Compliance
Navigating the complexities of immigration compliance involves following regulations such as the Immigration and Nationality Act (INA).
While the above list is not all-inclusive of all compliance issues businesses need to be aware of, it’s easy to see that there is no “one size fits all” solution. Businesses have to stay on their toes in an ever-changing environment to ensure they avoid non-compliance.
The Cost of Non-Compliance
The repercussions of non-compliance extend beyond fines. The cost of non-compliance can be devastating, affecting not only the bottom line but also the trust and loyalty of clients and stakeholders as well as impacting productivity, and resources to hit your business goals.
As a business owner, prioritizing regulatory compliance is not just a legal obligation—it’s a strategic move on your part to safeguard your business and foster trust. By staying informed, implementing robust compliance measures, and having a partner that can help you navigate compliance management, the burden can feel more manageable. Explore VensureHR’s Employment Law Updates to learn more!
Scale Up as You Bring Costs Down
By augmenting business operations with Solvo, your business can save on employment expenses by up to 60%, grow your workforce, and tackle back-office tasks causing bottlenecks. With Solvo, you’ll not only have access to an exceptional talent pool, you’ll also have access to cutting-edge technology that simplifies and streamlines your business. Our affordable, remote workforce and high-tech, AI-powered tools improve efficiency while enhancing your bottom line. Solvo ensures clients are up to date on relevant compliance training, and your security and privacy are maintained utilizing the latest technology and protocols.
Contact us to learn more about how we can help reduce the stress of compliance on your business.
Jennifer Therrien, VP Talent Management and Client Development
Leo Villanueva, VP of HR Compliance
