HR Managers- Compliance management & cost reduction

Off Late I have observed many well qualified HR managers instead of updating and convincing their higher management on best and fair practices in respect of compliances and regulatory statutes, focus more on cost reduction and deviation from basic statutory compliances.Especially this happens in contractual services.
My question - Is HR management not responsible for unfair practices in respect of compliances?

Hi,

HR can suggest /recommend on Statutory requirement , about the importance of employee morale, best HR practices to Top Management /Deciding Authority in the Company but final go ahead approval is in the hands of the Employer who always look at the bottom line of profit and loss. For the Employer's especially mid size companies how to increase the profit compared to last year will be the primary motto and they doesn't prefer to follow statutory part very accurately. HR Heads / HR Manager as employees beyond certain limit have no other option except to accept the final decision of the Employers.

Dear Bijay Majumdar,

Thanks for asking a good question. Prima facie the reply to your question is yes, HR professionals are very much responsible for promoting fair business practices or highlighting to the management unprincipled business practices.

However, HR is one of the departments of the organisation. We need to check what kind of culture is being promoted by the top leadership. Ethical or unethical, the HR just toes the line of the top leadership.

The other reason is India is a price-sensitive market and the competition is cut-throat. To sustain the competition, the management leaves no stone unturned to save the cost. Sometimes they adopt disingenuous ways also.

Therefore, the larger issue is promoting a culture of ethical business practices at the national level. It has to come from political dispensation. Whether the current political dispensation has time and interest in doing so is a point to moot!

Thanks,

Dinesh Divekar

I do agree to Dinesh & Lakshmi Narayanan views

Leadership team might think as by ignoring the compliances organisation will save the cost but at the same time as a HR professional its our responsibility as what are the benefits being complied & savings to the organisation. Also make sure the cost of non compliance shall be much higher than the compliances when ever it occurs & many of the organisations & occupiers/owners/Managers/Directors/proprietors /partners have experienced the same & I don't want to name the same here