A common use for enterprise resource planning (ERP) systems is helping government contractors meet stricter standards for transparency. Every time you turn around, the media runs a story on how organizations must share more information about their internal operations with the government agency they serve. If your organization contracts with a government entity, you have tougher standards than businesses without them. Your ERP provider must continuously update your ERP system to maintain compliance. Otherwise, you run the risk of losing your government contracts.
Example: Pay Transparency
A recent article reported that, on January 11, 2016, the government implemented President Obama’s Executive Order on Pay Transparency. If your business is a federal contractor or a subcontractor with more than $10,000 in federal contracts or subcontracts entered into or modified on January 11, 2016, or after, it must demonstrate immediate compliance. If you're working with a third-party provider of ERP software, this partner can help you meet this new government requirement. If you're searching for a new ERP systems , ensure that the product meets or exceeds government requirements. That's why we recommend that you extensively research an ERP solution before purchasing it.
A payroll system is a typical component of a business ERP system. A good system enables you to disclose pay information upon request to applicants and employees. This new Obama rule prohibits employers from discharging or discriminating against a worker or a job applicant because that person inquired about, discussed, or disclosed his or her compensation information or that of another worker or applicant. A good pay system helps you demonstrate transparency and accountability. It interfaces effectively with HR software and internal accounting systems.
We have more ideas on how to maintain compliance with government contracting standards. To learn the benefits of ERP systems, please contact us.
Written by J.H (Sales Team)