Companies now face an increasing volume and complexity of regulations, as well as an increasing pressure to comply with them. Employment-related tax and payment programs are no exception. Yet regulation complexity can make compliance more difficult, and it can dissuade CFOs and C-level executives from investing in a comprehensive solution, because they may believe that tangible business benefits are either hard to nail down or hard to prove.
It is no wonder, then, that despite evolving regulations, many organizations choose to either stand pat with existing employment-related compliance programs, doing the bare minimum, or take the risky path of avoiding compliance altogether. A common lament is, “Where do we start — and why should we?”
Compliance Programs Help Provide Enterprise-Wide Business Benefits
ADP recently sponsored a survey, conducted by CFO Research, that asked senior finance and human resources executives from 152 companies across a broad range of industries about their sentiments toward employment-related tax and payment compliance. The survey results indicated that many companies acknowledge the challenges, but they also showed that many organizations that have invested in a robust compliance program are indeed seeing significant — and often unexpected — benefits. Companies investing in a comprehensive employment-related tax and payment compliance program are often seeing significant payoffs for their business, such as a more engaged workforce, an improved corporate culture, and a sharper competitive edge.
An industry best practice is to approach compliance as an operational opportunity rather than a regulatory mandate.
In fact, nearly 60% of respondents said that employment-related tax and payment compliance has positively affected employee productivity and operational efficiency, and 50% said it has had a positive impact on their company’s overall profitability. Not surprisingly, executives who grade their companies highly for compliance are making ongoing compliance a top priority. This is likely because they recognize the enterprise-wide benefits that are delivered, such as the building of structural capital and a boost to the bottom line.
Compliance as an Opportunity
The research revealed other benefits as well, with 70% of respondents whose companies have adopted a comprehensive employment-related tax and payment compliance program reporting a boost in employee satisfaction, 63% reporting higher employee engagement, and 55% reporting improved corporate brand and recognition. Many companies are also experiencing other intangible benefits, such as better data access and better collaboration among employees. With all of these benefits emerging, leadership teams are beginning to understand that compliance can be more of an opportunity than a burden.
With approximately 620,000 clients in 125 countries, ADP, Inc. is one of the largest providers of human capital management, payroll, talent management, and tax and benefits administration solutions. ADP SmartCompliance, a cloud-based unified platform of outsourced services, is designed to help streamline and ease the burden of employment-related tax and payment compliance — while integrating with an organization’s existing ERP, financial, or human resources system of record.
To learn more about ADP SmartCompliance, visit www.adp.com/SmartCompliance. You can access the full report from CFO Research and ADP, Inc. at http://info.adp.com/content/bottom-line-on-compliance.