Does your organization have an employee compliance training program in place? Compliance training is a priority and can reduce your business risks. It also helps employees understand the rules and regulations to stay compliant at work. Employees can have peace of mind that they are safe in their workplace.
What Does Compliance Training Mean?
Compliance training means educating employees about company procedures, policies, and laws and regulations. It can be anything that applies to their day-to-day work. Employees can understand why specific rules and regulations are in place and how they affect them.
The Importance Of Employee Compliance Training
If you look at the hard facts, the monetary cost difference between having or not having compliance is staggering. Organizations spend $5.47 million on compliance, whereas non-compliance can cost businesses $14.82 million on average. Is there any wonder why more and more organizations are taking it seriously?
Creating Positive Working Relationships
It’s not only the cost savings that are attractive. There are many other reasons for your organization to commit to compliance. To get the best from your employees, you must treat them respectfully.
Compliance training can help create a positive working relationship with your employees and improve employee engagement.
It shows you genuinely care for your employees. Everybody in the company can work together for the good of the business.
It also gives employees a platform they can use to highlight any areas of concern. You might find out about something important that could have caused considerable damage.
Boosting Your Risk Management Strategy
Compliance training for your employees should be a critical part of your risk management strategy. Your employees need to know how to behave in certain situations.
A proactive approach to compliance can always help to reduce company risks. For example, the business could suffer:
- a data breach
- discrimination in the workplace
- or a safety incident.
The more that your employees understand the rules and regulations and follow them. You can feel rest assured that you are minimizing your risks as best as you can. Anything you can do to reduce risk could save the company money by staying compliant.
The Different Types Of Compliance Training
There are many different areas of compliance training. Here are some areas your organization must include in your compliance training program.
A Business Code Of Ethics
It’s vital that all businesses have a code of ethics in place. This code ensures everybody who works in the company knows how to behave in the workplace. Compliance training in this area could cover areas such as anti-harassment and violence, corruption, and diversity and inclusion.
It all helps to create an ethical place to work and also helps to improve the reputation of the company. It can also help to attract new employees to the company.
Cybersecurity and Privacy
Since the pandemic, the world has become even more digitized. With these positive leaps in technology, there are sadly higher risks of a data breach or other security issues.
Data protection and privacy training can help employees understand how they need to protect themselves and their clients.
Company Rules And Regulatory Compliance
Pushing a compliance culture is always going to help your business in the long run. It will help your employees further understand the ins and outs and why it is so important.
You can educate your employees on the company rules and the importance of regulatory compliance.
Employees will probably be surprised by how many laws and regulations are specific to the industry. This greater understanding can encourage staff to be more aware of their compliance obligations.
Health And Safety Compliance
The Occupational Safety and Health Administration (OSHA) standards help to protect workers if they have illnesses or injuries. Every employee is entitled to work in a healthy and safe environment, and OSHA helps workers achieve this.
OSHA has different training compliance topics depending on your business’s industry. It can help employees understand what they need to do in emergency situations, such as an earthquake or fire.
HR Compliance
Many HR employment laws exist, such as Equal Employment Opportunity, Fair Labor Standards Act, and Workplace Safety. These laws help to protect employees’ rights and also standardize an employer’s obligations.
Many HR departments are now using videos to educate employees on HR compliance. It makes it more interesting and easier for the employees to take in.
How To Deliver Employee Compliance Training Correctly
Your business needs to put the proper steps in place to ensure its employees receive the best compliance training. Because rules and regulations increase yearly, you must stay on top of your compliance obligations.
Here are some things to bear in mind so that you can create, deliver, and refine your compliance training.
Employee Compliance Training Needs to Come From the Top
Compliance training will only be effective if it comes from the top. The employees need to see that everybody is committed to compliance. The Chief Compliance Officer should be independent and report to the board or the CEO.
The right leadership is critical to ensure your compliance efforts are a success.
Create Clear Company Policies and Procedures
Your company policies and procedures need to be clear for employees to understand. These need to cover every area of the business. No stone should remain unturned.
The policies and procedures should also cover third-party partners to ensure your business is fully compliant.
A Robust Training Program
The compliance team should train staff regularly. Employees also need to know about company policies and procedures changes.
Providing compliance training for new staff members is a priority. However, it is also essential that existing employees are up-to-date with their compliance training.
Complete Oversight and Reporting
Monitoring and auditing tools are crucial to understanding a company’s compliance program. Many organizations have already moved from old legacy systems to more modern regtech solutions.
Technology can help companies spot compliance issues and then put steps in place to reduce the risk.
The Future of Employee Compliance Training
The compliance industry will continue to evolve and grow every year. Taking proactive action to train your employees in compliance is the best approach.
It will help your compliance team to handle new rules and regulations when they come along. You can reduce your risks and drive your organization to success.