By May, most HR teams have settled into the rhythm of the year. But compliance? That often lags behind.
And with mid-year audits looming, those gaps are about to become very visible. Outdated policies, incomplete records, and patchy training logs can’t be hidden when the auditors come calling.
Now is the time to do a compliance review before problems snowball. Let us see where compliance typically slips.
Common HR Compliance Gaps You Need to Address
Even the best HR teams overlook things. Such is the challenge of keeping the HR wheels running smoothly! But certain areas consistently show up in audit reports:
-
Incomplete onboarding records: Missing tax forms, background checks, or signed policies.
-
Lack of documentation for remote hires: Especially where multi-state compliance is involved.
-
Training gaps: Inconsistent tracking of harassment, safety, and data privacy training.
-
Policy versions out of sync: Employees referencing outdated handbooks or SOPs.
These errors, if left uncorrected, lead to regulatory penalties, legal risk, and reputational damage.
Why Mid-Year Is the Best Time for an HR Compliance Audit?
If you are asking — why now — you are not alone. After all, the review will add to your ever-expanding task list. Here’s why May–June is ideal for compliance review and getting ahead in the game:
-
Hiring slows down: Giving you bandwidth to review files and processes.
-
Enough data exists: Trends from Q1–Q2 reveal what’s working (and what’s not).
-
Still time to course-correct: You’re not yet at end-of-year crunch time.
Use this window to audit your audit-readiness.
Where to start? This 3-Part Review is a good place.
-
Documentation Audit:
-
Review signed forms, training logs, and policy acknowledgments. With truckloads of documents needed for each employee, it makes sense to ensure you haven’t missed any despite all the processes and checklists.
-
State Compliance Check:
-
If your organizaton has offices on multiple locations or you hire remote employees in multiple locations, you need to go local with your global policies. Verify location-based tax and labor law compliance to identify gaps, if any.
-
HR Tech Inventory:
-
Ensure your systems (HRIS, onboarding, LMS) are capturing what they should so you’re always audit-ready. These systems provide a clear audit trail, reduce manual errors, and make it easy to retrieve compliance data when needed.
HR Compliance Case Study: How All About Kids Fixed Compliance Before It Became a Problem
For All About Kids, staying compliant wasn’t just about ticking boxes. It was critical to maintaining service standards across diverse programs. But their old paper-based onboarding was slow, inconsistent, and left too much room for error.
They turned to HR Cloud to automate onboarding and documentation.
With digital forms, task tracking, and customizable workflows, they streamlined the entire process. No more missing forms. No more last-minute scrambles before audits. Just a cleaner, compliant system that adapts to new mandates with easeAll about kids.
Key HR Compliance Takeaways
-
Audit yourself before someone else does: Run internal checks on your onboarding, training, and compliance workflows now.
-
Bridge the tech gaps: If your HR systems don’t talk to each other, audit readiness will always feel like a fire drill.
-
Tailor communications: One-size-fits-all compliance training doesn’t work for a remote or distributed workforce.
Download our Compliance Readiness Checklist that ****includes everything from onboarding forms to training audits.
Final Thoughts: Compliance Is a Year-Round Commitment
Mid-year isn’t just a checkpoint but a chance to get ahead. Proactively addressing HR compliance gaps now reduces last-minute scrambles and protects your organization from risk.
Whether it’s onboarding documentation, training records, or termination workflows, each piece matters. A structured review backed by the right tools can turn compliance from a stressor into a strength.
It’s up to you whether you want to ensure readiness through process, or urgency.
Frequently Asked Questions (FAQs)
What is HR compliance?
HR compliance refers to aligning company policies and practices with legal and regulatory requirements. It includes labor laws, workplace safety, documentation, and employee rights.
What are the 7 main functions of HR?
The 7 core functions of HR are recruitment, onboarding, training and development, performance management, compensation and benefits, employee relations, and compliance.
How to check HR compliance?
You can check HR compliance by auditing your policies, employee files, training records, and documentation against local, state, and federal labor laws. Regular internal audits help you stay proactive.
How many compliances are there in HR?
There is no fixed number, but HR typically must comply with multiple layers of law covering wages, benefits, safety, anti-discrimination, data protection, and more.
What is HRIS software?
HRIS (Human Resource Information System) software is a digital platform that helps manage HR tasks like payroll, hiring, compliance tracking, benefits administration, and employee data management.
How many types of compliance are there?
Compliance generally falls into three categories: statutory (mandated by law), regulatory (required by industry or authorities), and internal (based on company-specific rules and ethics).
How many types of HR audit are there?
There are several types of HR audits, primarily categorized into internal and external audits. They can also be categorized based on their focus areas, such as compliance audits, strategic audits, function-specific audits (like payroll or benefits), and cultural audits.
What is HR statutory compliance?
HR statutory compliance means adhering to labor laws and government regulations covering minimum wages, working hours, employee benefits, health and safety, and tax filings.
Author:
This article is written by Shweta in close association with HR Cloud. HR Cloud is a leading provider of proven HR solutions, including recruiting, onboarding, employee communications & engagement, and rewards & recognition. Our user-friendly software increases employee productivity, delivers time and cost savings, and minimizes compliance risk.
