Only 6pc would feel completely confident, according to the research by the platform HRLocker, which indicates an uncertainty about incomplete documentation, slow response times and untested processes.
Some 400 HR professionals were surveyed, working in SMEs with between 20 and 249 employees. The research was prompted by the increased frequency of surprise inspections by the WRC, and the prospect that many employers could face prolonged investigations if they are not prepared.
The survey found that there are two main reasons why firms are not ready – incomplete documentation, and no practice sessions.
Internal audits and mock inspections are said to be the most effective way to test compliance readiness, but are rarely carried out. Only one in four SMEs had conducted an internal audit or mock inspection in the past year, the survey found, while more than half (52pc) had done no checks at all.
Many SMEs admitted they are missing key statutory documents that would have to be produced during a WRC inspection. About half had out-of-date or incomplete employee contracts and terms (54pc), disciplinary and grievance records (49pc) or employee handbooks and policies (45pc).
The survey found that two out of five firms did not have complete leave and absence records for staff, while 37pc did not have a full set of payslips and payment records. Some 27pc had incomplete working-time records, and 30pc did not have full training logs.
One in four SMEs said it would take them between four and seven days to assemble a full evidence pack, and one in 10 reckoned it would take more than a week. Other records that would typically be needed during a WRC inspection are employee contracts, disciplinary and grievance records, and employee handbooks and policies.
Crystel Robbins Rynne, the chief executive officer of HRLocker, said: “What this research really highlights is that SMEs don’t need more regulation. They need the right processes and systems to stay on top of the basics.
“Regular internal audits, centralised documentation and digitised record keeping make compliance manageable day to day. When those foundations are in place, organisations can respond faster, reduce uncertainty and be genuinely inspection ready.”
HRLocker is a HR and compliance management platform that says its services are designed for SMEs across Ireland and the UK.
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