Human Resources News & Insights

You might take this study with a grain of salt

How confident are you that you’ll be able to keep up with increasing HR compliance burdens over the coming months and years? A recent study indicates that a lot of HR pros are apprehensive about what the future might bring.

A study by ADP indicates that more than half of today’s companies surveyed lack confidence in their ability to keep pace with complex, ever-changing HR regulations.

And the majority believe that the HR compliance burden will only grow more difficult with time.

That’s kind of disturbing news — until you find out the title of the research paper:

Relieving the Pressure: The PEO Approach to Navigating Compliance and Gaining a Competitive Advantage.

ADP offers ADP TotalSource, a professional employer organization where companies outsource human resources, employee benefits, payroll and workers’ compensation.

Some other survey results:

More than 250 small (1-49 employees) and mid-size (50-999 employees) businesses were surveyed on their most pressing business concerns.

The top three concerns:

  • Hiring top talent
  • Maximizing employee productivity, and
  • Keeping overhead low.

Their greatest business concerns:

  • The rising cost of benefits
  • Finding and retaining good people, and
  • The rising costs of fuel and other materials.

While we’re sure many HR pros are, indeed, somewhat apprehensive about new compliance burdens, we’re pretty skeptical that the situation’s as dire as the ADP study indicates.

Certainly outsourcing is a viable option for a range of companies. But we doubt too many of them are going to make the decision based on a fear of the future.

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  1. Interesting research from ADP, even if it is a bit self serving. PEOs have helped thousands of business obtain and maintain tax and HR regulatory compliance in a business environment than can be very hostile to employers.

    ADP is a good company, but there are hundreds of PEOs that may actually provide a better fit, depending on the size, location and type of business considering hiring a PEO.

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