All you need to know when choosing HR compliance software

Author Hope Weatherford Date Apr 25 2024

We get it—HR compliance isn’t necessarily the most exciting part of working in recruitment. But its importance warrants this blog post explaining how HR compliance software can help your recruiting team stay compliant. So let’s get to it!

In this post, we’ll define HR compliance software, explore its capabilities for your hiring team, offer tips on how to evaluate different kinds of HR compliance software, and give you what you need to take a critical approach to your software search. 

What is HR compliance software? 

Before we get into the juicy stuff, let’s start with the basics. What exactly is HR compliance software?

cartoon of humans using software on a giant desktop computer

HR compliance software is built to help HR teams and the organizations they represent maintain compliance with labor laws, both at local and national levels. These laws can cover a range of topics from fair hiring practices to workplace safety to employee benefits. And, as the name of this post reveals, companies can use software to ensure compliance across their hiring and employment practices. 

As part of a great Human Resource Information System (HRIS), HR compliance software makes it easier to keep your hiring initiatives on track and up to date.

How can HR compliance software benefit your team?

Not only does HR compliance software help you abide by local, state, and federal labor laws, it also can promote efficiency across your hiring tech stack.

By integrating HR compliance with your existing hiring processes, you’ll be better able to manage all hiring tasks within one system, increasing productivity and allowing more time for more personalized activities, like candidate communication. 

Additional features of HR compliance software also can help you manage other tasks within your hiring workflow, such as data security, information privacy, and automatic updates in case there are changes to labor laws.

Staying on top of HR compliance isn’t just helpful for your recruiting processes, it’s a required practice. Companies that aren’t compliant can face serious penalties, including legal action that can drain your business of time and resources. 

Cover your bases with our HR compliance checklist.

Tips for evaluating HR compliance software

Now that you’re well-versed on how this transformational technology can save you a boatload of compliance headaches, let’s explore what you should be looking for when researching your HR compliance software options. 

Identify your team’s current pain points

First, assemble those people who are involved in your compliance initiatives and ask them to assess what’s already in place vs. what’s missing from your current processes.

You may find that you have gaps in compliance because you operate in multiple states or there may be industry-specific rules and regulations you need to follow. A thorough investigation can bring these questions to light and give you a solid starting place for your HR compliance journey forward.

Prioritize must-have features

After your audit of existing practices and once you have identified compliance gaps, make a list of the features you want your HR compliance software to have to make your recruiting team’s lives easier.

Desired features may include data security, document management, and the ability to report compliance to the proper authorities. Whatever you’re aiming to achieve, you’ll be able to find compliance software that takes the busy work off your plate. (We’ll cover key features in depth in the next section!)

Request demos and trials of potential solutions

Once you’ve done enough research into compliance options and you’ve identified a few that speak to your organization’s needs, reach out to these entities to request a demo of their solution.

woman sitting at a table working on a laptop computer

It never hurts to ask for a trial period if you feel like you need more time to test the functionality of any given solution.

Involve key stakeholders and roles in the decision-making process

Before taking the final step and selecting your HR compliance solution, make sure you’ve involved the appropriate parties in this decision.

This cohort should include HR managers as well as members of your Finance team to ensure the solution matches the budget you’ve allocated for compliance.

Read our guide on how to perform an HR compliance audit.

Key features to look for in HR compliance software

If you’re new to the compliance game, you might not know what your department needs in order to keep all processes legally sound. In this section, we’ll cover a few must-have features that can help you build a foundation of compliant practices and that you can add to as your compliance needs change and evolve over time.

Customization capabilities

Because labor laws and regulations tend to change quite frequently, especially given the three tiers of legislation you need to monitor (i.e., local, state, federal), you’ll do yourself a favor by adopting a compliance solution that is easily customizable.

This type of HR compliance software will allow you to tweak your compliance practices in case there are any amendments or additions to existing labor laws.

person using a mobile phone and typing on a laptop

Integrations with current systems

The scariest thing about new software is the idea of adopting an entirely new system that comes with a steep learning curve.

Thankfully, there are HR compliance solutions that can easily integrate with all kinds of Human Resource Information Systems (HRIS), so all you need to do is drop it into your desired place in the hiring funnel.

Data security and privacy

This is a must—your HR compliance software should, at a minimum, ensure data safety and privacy to protect the information of your employees. If a solution in question doesn’t offer this functionality, it’s best to discard it as a viable compliance option. 

Questions to ask HR compliance software vendors

As you approach your HR compliance software vetting process, not only do you need to keep an eye out for the features that you want and need but you also need to ask the vendors the right questions. Such questions might include:

  • Is your software built to scale? If so, how can it help us scale?
  • What kind of customer support do you provide during and after implementation?
  • How frequently do you make updates to your compliance software? What is required when an update is needed?
  • Can you provide case studies and/or testimonials from some of your customers who have similar businesses? 

Fountain’s approach to compliance software

If you don’t want to travel far for your ideal compliance solution, you’re in the right place! With Fountain Compliance, you can rely on AI-driven precision and automated document collection and evaluation to ensure a seamless and secure worker compliance experience tailored specifically to your frontline business needs.

With transparent oversight, effortless automation, and world-class customer support, Fountain Compliance keeps your hiring processes 100% compliant and your workforce fully productive.  

Want to learn more about Fountain Compliance’s full capabilities? Click here!


Optimize your hiring operations.

We’re on the cusp of a new era of workforce management. To stay ahead of the competition, you need a complete, comprehensive frontline hiring solution that gets your candidates from application to first day, fast. See how Fountain can do just that.

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About the Author

Global Head of People

Hope Weatherford

Hope Weatherford has more than 15 years of experience in the People space, and currently leads the People Team at Fountain. She has worked at different levels for all types of companies, from Fortune 100 to early-stage startups. She also serves as an advisor to multiple HR tech startups.