Inside the Industry
compliance

Compliance is The Big Question on Our Minds

In the world of HR, compliance is the key to reducing risk. It is achieved by successfully monitoring and managing ever changing laws and regulations as they relate to business operations and employee relations. Compliance impacts almost every task related to HR. Employment offers, contracts, employee record keeping, credentialing, license tracking, reassignments, training and more. The focus on compliance has certainly changed the role of HR. It has shifted from a personnel-focused function to a more complex role. This is especially true in the healthcare industry.  

In order to remain compliant, Healthcare HR Managers are now required to report on background checks, certification renewals, tracking of inoculations and time tracking as part of ACA Compliance (1094-C and 1095-C). Not to mention credential tracking and performance reviews that must be performed. This is in addition to the talent management modules that are also required to maintain employee data and reporting. With all of that in mind, it has become clear that implementing an HR management software system is no longer a luxury, but a crucial part of maintaining full compliance in the business climate and for healthcare companies and hospitals in particular.

Effectively managing compliance begins with a single HR software system to provide a comprehensive, end-to-end solution.

There are several HRMS software providers in the market today and finding the right solution that meets all organizational compliance needs requires a bit of research.  First, it is important for an organization to identify what their current processes and needs actually are before identifying a solution provider.  A single system is preferred to multiple integrated systems to ensure proper reporting for ACA compliance and credential management.  A single cloud-based system may even lower costs for hospitals by reducing internal IT costs.

3 Biggest Challenges in Healthcare HR (source: UnicornHRO.com)

  1. Staffing: Growing Demand, Dwindling Supply

With the rising trend towards performance-based career models in the healthcare industry, many HR departments are also struggling to recruit and retain high performing workers. In order to manage these challenges HR Managers can implement Applicant Tracking Systems (ATS). These systems streamline the hiring process and include automated notifications and workflows which allow HR managers to quickly respond to qualified candidates while having access to compensation data.

2. Regulations: Reporting and Compliance

With the introduction of the Affordable Care Act (ACA) there are new reporting requirements that HR Managers are now required to report to the IRS. Managers must accurately track employees and their work hours as they relate to health benefits, annual reviews and performance evaluations. Employees must also have backgrounds checks, certification renewals, and tracking of inoculations. HR ACA Reporting and Compliance software helps HR managers to generate and file forms required by the IRS, including 1094-C and 1095-C. 

3. Cost: Investment in Talent Management

In the healthcare industry, talent management programs offering competitive salaries to hire and retain high performing workers can have a direct impact on patient satisfaction and ROI; it can also decrease staff turnover, which can be another costly hit to an organization. In a landscape in which HR managers struggle with their current budget, finding ways to reduce costs even further in order to invest in talent management, continues to be difficult. Fortunately, IT can be one area in which these cuts can be achieved. Cloud solutions can reduce costs associated with maintenance requirements, removing costs associated with hardware upgrades and providing automated maintenance and upgrades of applications.

Comprehensive HR technology supports HR managers in overcoming challenges related to talent management, staffing, regulations, reporting, and all of which feeds into compliance.  Having the right systems in place is part of a bigger strategic workforce plan. 

The Essium team collaborated on this blog post – an initiative led by Ben Olson, CEO & President of Essium, LLC

Sources:

https://hiring.monster.com/employer-resources/recruiting-strategies/workforce-planning/staffing-compliance/

https://www.hrdive.com/news/7-compliance-issues-every-hr-leader-should-know/515271/


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