Top 6 HR Compliance Challenges in the Technology Sector

By Marianne Chrisos - Last Updated on August 2, 2019
HR Compliance Challenges

Preventing and resolving HR compliance issues is a key driver in HR success. While HR is more than a regulatory department, much of their focus is on processes that have some regulatory component. From payroll to benefits and recruitment and record-keeping, compliance is a serious HR issue that needs proactive attention.

Issues in IT are similar to the compliance issues in other industries, though some are more prevalent or need a certain kind of attention in order to prevent or correct problems.

The top HR compliance issues to consider in IT sectors


Harassment is one of the most important compliance issues to pay attention to. Not only can harassment filings lead to increased employee turnover and toxic, hostile work culture, but it can also lead to legal issues, fines, and penalties. Many IT firms or groups in businesses of varying sizes remain primarily male and this has historically been a higher indicator of harassment claims. It’s important to pay attention to the anti-harassment policies at your business and ensure that they are in line with current employment laws and part of regular, mandatory employee training.


According to the HR experts at Extensis, “With an increase in laws and regulations focused on workplace diversity, companies have had to drastically alter their recruiting and HR policies to keep up and meet the strict compliance standards in place today.” Diversity in the workplace – deliberately and intentionally hiring people from all different backgrounds, including race, age, education, experience, gender, and more – has shown an increase in creative thinking and strategic decision making. In addition to staying compliant with relevant recruitment and hiring laws, diverse workspaces tend to show greater productivity, fewer legal claims, improved company brand, and employee engagement, and even better customer retention.

#Federal, state, and local laws

From 2008 – 2018, the US saw a number of policies and laws come into play that changed the HR processes significantly. From implementing coverage and benefits relating the Affordable Care Act to new tax laws affecting employee tax deductions, staying up to date with all laws regarding employee benefits, pay, and leave is key to your HR team’s success – and ultimately your employees’ satisfaction. Using automated HR software solutions and technology can help your business stay on top of compliance changes from minimum wage changes, paid leave laws, pay equity stipulations, and much more all to help keep your business protected from non-compliance issues like fees and other negative consequences.


Talent acquisition and recruitment, particularly in IT, has grown more and more competitive. Some businesses find that they have open positions for a long time, as the number of open jobs in the IT sector often outweighs the number of qualified candidates available. In order to attract and retain the best candidates, as well as maintain compliance, companies are having to rethink their recruitment strategies. Extensis notes, “employers need to modify existing recruiting strategies and identify HR software to meet the expectations of digitally-savvy talent. Employers also must keep new laws in mind, such as New York City’s salary history ban, when updating their recruiting and onboarding procedures.

#Data security

Data security is one of the number one priority of most businesses, in IT sectors and other industries. With data breaches still making the news regularly, organizations need to invest both time and money into securing both their customer and employee data. HR groups have access to sensitive employee data including addresses, phone numbers, email addresses, and social security numbers; an employee data file has more than enough information to start the identity theft process. Securing employee data is a huge HR responsibility and missteps can lead to legal issues, employee turnover, damaged business reputation, and more.

#Wellness and mental health benefits

Working in IT sectors can be an emotionally, physically, and mentally stressful environment at times. A lot is often riding on the success of IT projects, whether it’s successful data storage or improved customer relationships. Paying attention to the current regulations surrounding employee health benefits and leave policies can go a long way towards not just ensuring compliance with federal and state laws, but also in keeping employees happy, healthy, and more productive, which is a huge benefit for your organization.

You can protect your IT business or department by ensuring that your HR department is a well-run, knowledgeable group. HR expertise is a highly valued skill since it can help prevent business damage in the form of lost productivity, lost customers, lost employees, legal fees, and other penalties due to compliance mistakes. If your HR department is lacking in compliance knowledge, consider outsourcing some HR functions, bringing in a strategic consultant, or having HR staff go through additional training to help ensure that your business and employees have the protection and knowledge you need.

Marianne Chrisos | Born in Salem, Massachusetts, growing up outside of Chicago, Illinois, and currently living near Dallas, Texas, Marianne is a content writer at a company near Dallas and contributing writer around the internet. She earned her master's degree in Writing and Publishing from DePaul University in Chicago and has worked in publishing, advertising, digital marketing, and content strategy.

Marianne Chrisos | Born in Salem, Massachusetts, growing up outside of Chicago, Illinois, and currently living near Dallas, Texas, Marianne is a content writer at a c...

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