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HR Compliance in 2021: What you need to know now

Steve Smith, MD EMEA of Sterling takes a look at the HR compliance landscape and what lies ahead.

For the HR arena, the compliance landscape over the last 12 months has been tough. Before the pandemic even hit, we were facing an increase in contingent, contract, and gig work as employers sought out a more flexible workforce, which in itself creates a compliance minefield for many businesses. Then of course for the UK we were heading towards Brexit, which, despite a deal being reached at the last minute, is set to create further employment screening challenges for employers in 2021.

As a result of the Covid-19 pandemic, many employers faced a rapid shift to remote working and staff furlough – both of which raised a number of complex compliance concerns that no-one could have predicted.

While it was certainly a challenging time, there were some positives last year that truly deserve recognition. In particular, the global movement against racism has put diversity on the agenda to a greater degree.  Another positive shift for many employers and candidates is the move to remote working, which has significantly opened the talent pool for many organisations as location has become a far less critical factor for recruitment.

Moving forward with a sense of optimism
That was last year, and while uncertainty remains rife for 2021, many would say that we are in a better position now than we were back in March 2020 when our worlds were turned upside down.  Hiring has faced a real roller-coaster ride, but there have been signs of optimism. As a case in point, back in October, our data showed that over half of businesses in EMEA were hiring. Background screening in some cases was back to pre-Covid levels, with gig, technology, and professional services the most dominant sectors performing background checks at the time. We weren’t yet out of the woods completely, but the signs suggested that we were at least heading in the right direction.

Of course, things have continued to change, with new strains of the virus wreaking further havoc and leading to an additional national lockdown in the UK. However, while uncertainty is still prevalent, when it comes to HR compliance, there can be no grey areas. With the world of work and the hiring landscape evolving constantly in the current climate, HR teams are facing a wealth of compliance challenges. So, what do you need to know?

Covid-19 employment compliance considerations
Managing and supporting workforces through the pandemic was certainly a key focus last year, but looking towards the coming weeks and months there are a number of HR compliance considerations directly related to Covid that will certainly come to the fore. Monitoring and tracking staff who have either had the virus or been given a vaccine and knowing what you can and cannot ask about Covid, for example, is crucial for HR teams.

This is an incredibly complex and sensitive issue that is further exacerbated by the nuances across the globe. The ability to ask staff if they have symptoms, for example, is completely acceptable in countries such as the UK, whereas in Italy it’s allowed, but there are limitations. Some destinations, such as France, don’t allow employers to ask staff about symptoms at all. As such, it’s critically important that HR teams take a country-by-country approach to communicating Covid concerns and health and safety requirements to avoid inadvertently breaching local rules.

It’s also important to bear in mind that recording Covid data – such as who has had a test, when, and the result – creates a data protection and privacy issue that needs to be carefully considered. Organisations need to assess what employee data is being recorded and whether or not they have sufficient purpose to keep this information to avoid any potential ramifications.

Remote working compliance
Managing staff in a remote environment is also opening up a number of compliance challenges. While many organisations may have adapted to full work-from-home processes throughout last year, there are long-term considerations that need to be factored in.

How staff are monitored while they are working remotely, for example, is something that HR teams have had to cautiously navigate over the last year and will continue to battle with throughout 2021. We can’t overlook the fact that in times of crisis, there is a danger that employee privacy and trust can take a back seat. As an employer, you have a duty to look after the health and safety of your employees while also ensuring your business can continue to operate – and that includes ensuring your data is protected. However, employees may feel that some monitoring processes are intrusive, so it will continue to be a balancing act to keep staff engaged and motivated, without compromising on compliance.

Any considerations in this regard will also need to factor in the use of private devices in a remote working setting. Monitoring work activity from an individual’s own device is a very delicate and tricky issue to navigate. Clear and consistent communication about what tech and platforms are acceptable to use, how the company will be monitoring usage and how business data and assets will be protected will certainly help alleviate some of this issue. However, it is a complex challenge and legal teams will need to be involved to ensure any action is viable with company policies.

Recruiting remotely
The remote working revolution was certainly a key compliance challenge last year, but as we continue to operate in a virtual environment, many employers are increasingly shifting their focus to longer-term remote recruiting strategies as well. While hiring virtually was delivered where necessary during the pandemic, many approaches were arguably reactive. As organisations try to get back on track, recruitment is creeping up the agenda – with many employers taking a virtual approach.

Remote hiring does come with a number of challenges. Some elements of the process, such as ID verification, will need some form of human or face-to-face involvement. There are tools that have been used during the pandemic to allow checks to still be carried out and the DBS has temporarily allowed some documents to be submitted via video links or scanned versions to be shared. Whether this will continue on a more permanent basis is still uncertain.

Elements of the broader background screening process can also be shifted online, but it is important to ensure that any tools you are investing in to support these checks are fit for purpose.  Artificial intelligence and human verification to validate documents  speed up the process in a virtual world and improves the candidate experience. But that in-person element is still necessary, so be wary of any solutions that offer a complete online verification process.

Navigating through 2021 and beyond
While the above isn’t a comprehensive list of the compliance concerns facing HR directors today, it certainly paints a picture of increasing complexity. There will be trying times ahead, but if employers can get the processes in place that are suitable in a constantly changing employment and legal environment, they will be setting themselves up for the best possible success for 2021 and beyond.

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