Why is Compliance Training Important?

According to the Health and Safety Institute, only 29% of businesses assess their employees' understanding of compliance and staff skills on a consistent basis. Setting up this training for your employees is crucial because it not only helps your team stay on track toward the same goals but it can also reduce the risk of legal fees and penalties that your company could face due to an employee or the company being non-compliant.

What is Compliance Training?

Compliance training varies depending on the business, but the root of it is based in educating your employees on the certain regulations that they need to follow and know in order to work successfully at your company. Here are a couple of examples of the type of compliance training that you might encounter.

Data Protection and Privacy Training

Most companies, regardless of the sector they are in, control some level of sensitive data for their customers/clients. Whether this is basic identifying details or more private financial records, it’s important that employees know the proper precautions and actions to take if something goes awry.

For example, in the US, federal agencies dedicated to national security are required to be well-versed in the Federal Information Security Management Act (FISMA). This requires these agencies to develop data protection plans and promote different security software.

Workplace Safety

Compliance training can focus on safety within your specific workplace as well. Most know about the Occupational Safety and Health Administration (OSHA) and its set regulations and standards. Often these regulations are surrounding incidents like falls, harmful toxins, or other physical injuries that can be sustained.

Although companies like those in construction or manufacturing sectors are at increased risk for these injuries, companies with standard office settings should also have basic physical safety training in place. This can include anything from first aid application, appropriate emergency response, or identifying and reporting hazards.

Diversity Training

This training specifically focuses on reducing prejudice and discrimination in the workplace by opting for a more inclusive and diverse workforce. Training often covers differences such as race, ethnicity, gender, sexual orientation, age, and ability. It’s important for all companies to incorporate some level of this training to foster positive employee relationships and highlight unconscious bias and common goals that your whole team shares.

Anti-Harassment Training

This is another example of training that should be included in every company. The courses typically make employees aware of inappropriate interpersonal conduct in the workplace. They will learn how to define various types of harassment and methods they can use in response to instances of harassment. In certain states like Washington, Utah, Texas, and New York, this training is required by law.

Why is Compliance Training Important?

Since compliance training can cover a variety of topics surrounding safety, precaution, and regulations on multiple levels, its importance remains integral to a company’s health. Here’s why:

Reduced Risk of Non-Compliance

Training will help your employees get the education they need to realize the importance of compliance within their day-to-day activities. It can help you develop policies and procedures to better help you and your company comply with federal and industry regulations.

Promotes an Inclusive Environment

When employees know how to recognize compliance issues, especially when they include serious incidents like harassment, it’s easier to trust that they will handle and report it appropriately. This also helps to increase employee well-being and company reputation by creating a safe space for anyone to speak up no matter what is going on around them. The more trust your company has overall, the more business it will bring.

Defines Organizational Policies

Providing this structure and integrity to your employees helps create a cohesive mindset behind the goals and aspirations of your company. By having policies clearly defined, employees can work with the comfort of knowing their responsibilities and reduce their worry about not following company procedures. The more information that can be included in these policies will help save you time managing small intermediary obstacles and issues.

Balances Ethics and Priorities

Employees may think that compliance training is there to control them and their actions at work. However, training employees on what is expected of them and explaining company principles can combat this. When employees are given evidence that they are working together on something bigger and that they have an impact on the trajectory, they are more likely to have boosted morale and determination. It will also help them err on the side of caution to make sure they and the company fall under industry standards.

Compliance training is essential for businesses, reducing non-compliance risks, promoting an inclusive environment, defining organizational policies, and balancing ethics and priorities. It educates employees on regulations, saving time and money by avoiding legal battles and penalties. Fostering trust and encouraging reporting creates a safe space for employees to address compliance issues. Compliance training aligns employees with company goals, boosting morale and ensuring adherence to industry standards. Overall, it contributes to the success and well-being of both employees and the company.