The importance of compliance in a changing HR landscape

The importance of compliance in a changing HR landscape

Compliance. For many HR professionals, it sounds like an administrative burden, a necessary evil that consumes time and energy. But in today’s HR landscape, adherence to laws and regulations is no longer a side issue,it’s a strategic necessity that directly impacts your operations, reputation, and organizational culture. The world of work is changing at an unprecedented pace. Hybrid working is the new norm, AI tools are being deployed daily for recruitment and performance management, and the labor market is experiencing a talent shortage. At the same time, laws and regulations are becoming increasingly complex. Think of GDPR, the Whistleblower Protection Act, and the upcoming AI Act. For HR departments, this means a fundamental shift: from operational to strategic, from reactive to proactive.

Why compliance is more important than ever

The risks of non-compliance have grown exponentially in recent years. A data breach can cost your organization hundreds of thousands of euros, not only in fines but also in reputational damage. A discrimination case caused by an algorithm screening applicants can result in years of legal proceedings and seriously damage your employer brand. But it goes beyond just risk management. Compliance is fundamental to creating a healthy company culture where employees feel safe and valued. When you as an organization are transparent about how you handle personal data, fair in your employment conditions, and careful in your decision-making, you build trust. This trust is worth its weight in gold in a tight labor market. Employees increasingly choose employers who not only talk about values but actually uphold them. Compliance thus becomes a competitive advantage in the battle for talent.

The most important compliance obligations for HR

Dutch organizations deal with a wide range of laws and regulations. GDPR naturally takes precedence when working with personnel data. Every time you collect, process, or share information about employees, you must be able to justify why you’re doing it, how you protect the data, and how long you retain it. Labor law forms a second crucial area. From employment contracts and dismissal procedures to working hours and vacation days, the regulations are extensive and regularly updated. The Work and Security Act (WAB), for example, has significantly tightened the rules around flexible work, with direct consequences for how organizations manage their flexible workforce. Then there’s the growing attention to safety and well-being. The Working Conditions Act requires employers to create a safe working environment, and that goes beyond physical safety. Psychosocial workload, including work pressure and transgressive behavior, also falls under this. The Whistleblower Protection Act adds another layer by requiring organizations to have a reporting procedure. And then there’s AI. With the arrival of the AI Act, organizations face new obligations regarding the use of artificial intelligence in HR processes. From recruitment to performance management, if you deploy AI you must be able to demonstrate that this happens in a transparent, fair, and non-discriminatory manner.

The difference between governance and compliance

Compliance and governance are often used interchangeably, but they are different concepts that complement each other. Compliance is about adhering to external laws and regulations. These are the rules imposed from outside by legislators, regulators, or industry organizations. Governance, on the other hand, is about the internal rules you establish as an organization. It’s the framework of processes, policies, and structures through which you manage compliance, but also ethics, accountability, and decision-making. Good governance ensures that compliance isn’t just a checklist, but an integrated part of how your organization operates. An example: GDPR is compliance, you must adhere to this law. But how you as an organization deal with data ethics, which principles you apply when collecting employee feedback, and how you’re transparent about data use,that’s governance. Strong governance makes compliance easier because the right processes and mindset are already baked into your organization.

The role of the compliance officer in modern HR

In larger organizations, you increasingly see the position of compliance officer emerging. These professionals form the bridge between laws and regulations on one hand and daily HR practice on the other. But what makes a good compliance officer? First, in-depth knowledge of relevant laws and regulations is essential. This goes beyond just knowing the letter of the law. It also means understanding how regulations are evolving, what trends exist in case law, and how different laws interconnect. A compliance officer must be able to translate legal texts into practical HR processes. Analytical ability is a second crucial competency. Compliance officers must be able to identify risks before they manifest. This requires the ability to analyze data, recognize patterns, and think through scenarios. When the organization implements a new HR system, a compliance officer must be able to assess what privacy risks this entails. But technical knowledge alone isn’t enough. Communication skills are at least as important. A compliance officer must be able to explain complex regulations to managers who don’t have a legal background. They must be able to convince people of the importance of compliance without resorting to fear tactics or bureaucratic language. Integrity and ethical awareness form the foundation. A compliance officer sometimes faces pressure to bend with commercial interests but must remain the organization’s moral compass. This requires backbone and the ability to have difficult conversations with senior management.

Practical steps toward better HR compliance

For many organizations, compliance feels overwhelming. Where do you start? A first step is conducting a compliance audit. Map out which laws and regulations apply to your organization and check where you currently stand. Which processes do you already have in order? Where are the biggest risks? Documentation is then crucial. Ensure you have policies on paper for the most important compliance areas: privacy, equal treatment, employment conditions, safety. These documents are not only important during a potential inspection, they also help create clarity within your organization about what is and isn’t allowed. Training managers and employees is the next essential step. Compliance isn’t an HR responsibility alone. Every manager who supervises people must have basic knowledge of labor law and privacy. Regular training and updates keep this top-of-mind. Technology can make compliance considerably easier. Modern HR systems often have built-in compliance features, from automatic checks on contract duration to secure storage of personnel data. Employee survey platforms like Deepler help collect and analyze feedback in a GDPR-compliant manner, without unnecessarily sharing sensitive data. But perhaps the most important step is creating a compliance culture. This means that adherence isn’t seen as a burden, but as a natural part of how you work. This starts with tone from the top. When senior management demonstrates that compliance is important and sets the right example themselves, this trickles down to the rest of the organization.

From risk to opportunity

Organizations that excel in compliance don’t see it as a necessary evil, but as a strategic instrument. They use their strong compliance track record as part of their employer branding. They communicate transparently about how they handle data and why privacy is important. These organizations invest in systems and processes that not only ensure compliance but also provide insights. By regularly conducting employee surveys that meet all privacy requirements, for example, you not only get compliant feedback but also valuable data about what’s happening in your organization. This helps in making better strategic decisions. They also see the link between compliance and other HR objectives. An organization that handles privacy carefully and is transparent about data use creates psychological safety. Employees dare to be more honest in feedback when they can trust that their responses will be treated confidentially.

The future of HR compliance

The HR landscape continues to change, and with it the compliance challenges. The rise of AI calls for new frameworks and policies. Hybrid working raises questions about working conditions and privacy. The growing attention to sustainability and corporate social responsibility leads to new reporting obligations. Organizations that invest now in strong compliance foundations are better prepared for these future developments. They have the processes, systems, and culture to pivot quickly when new regulations are introduced. Start today by mapping your compliance status. Identify the biggest risks and address them systematically. Invest in knowledge, both internally and externally. And above all, see compliance not as an endpoint but as a continuous process of improvement and adaptation to a changing landscape.