Compliance is exactly what it sounds like — ensuring that a business adheres to rules, regulations and laws to protect its employees and avoid litigation. While it might seem like following rigid procedures reduces efficiency, there are many ways it can actually improve workflows and productivity.
5 Ways To Balance Compliance And Efficiency
It may be challenging, but it is possible to run a tight ship in terms of both following the rules and working productively.
Employ Technology
Automating processes can streamline operations and increase efficiency while ensuring compliance. A company can use software to automate compliance tracking, reporting, and document management, reducing the risk of human error and ensuring the business meets regulatory requirements.
Healthcare organizations, for example, use automation to improve compliance with the False Claims Act, HIPAA, HITECH, and the Anti-Kickback Statute.
Technological solutions also include cloud-based systems that let companies access their data remotely, which can help quickly respond to compliance issues. In addition, digital signatures reduce the time and resources required when following compliance procedures.
Conduct a Risk Assessment
Organizational efficiency covers how well a company meets its goals using limited resources. To balance compliance with organizational efficiency, a company must understand the risks involved in its operations.
A comprehensive risk assessment identifies areas where compliance is a top priority and where the company can optimize for efficiency. Businesses can make better decisions about where to focus their resources when they understand these risks.
Develop a Plan
After identifying risks, companies can develop a compliance plan. It should outline the processes that help ensure compliance with relevant laws. Such procedures could include employee training programs, regular audits, and ongoing monitoring.
To get started, the company’s business leaders and managers should gather all of their policies in one location. Then, they should review the procedures and establish a plan to ensure all policies line up with current regulations, expectations, and company goals. A solid compliance plan will address who holds employees accountable for policies and procedures.
It should cover how frequently the company must review and update its compliance policies, who is responsible for maintaining compliance, and whether employees can access job-critical procedures as needed.
Provide Employee Training
Making sure workers are well-informed is a critical component of meeting compliance and efficiency goals. When businesses provide regular training, they ensure employees understand the importance of both, equipping them to meet the challenge of balancing these two elements.
An important aspect of ongoing training is fostering a culture of compliance and efficiency. Employers should encourage collaboration, promote open communication, and recognize and reward employees who succeed in both areas.
In the U.S., in 2022, 56% of businesses reported that their compliance training was purely online. To develop a compliance-based workplace culture, employers should spend more hands-on time training employees rather than delegating the task to a computer.
Perform Ongoing Evaluations
Companies must continually monitor and evaluate their operations to ensure everything is staying on track. They can conduct performance reviews, regular audits, and evaluations of their technology and compliance processes. Performing ongoing analyses allows businesses to identify areas that need improvement and make changes as necessary.
A Delicate Equilibrium
Balancing compliance and efficiency is crucial for success. By fostering a workplace culture of compliance, using automation, and performing regular risk assessments, companies can develop a comprehensive plan that ensures productivity while adhering to legal guidelines. Doing so ensures organizations can protect themselves, their employees, and their clients while still turning a profit.