How Compliance Training Saves Businesses Money
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The Biggest Benefits Of Compliance Training ROI

Organizations across the globe are beginning to recognize the importance of compliance, which is why the role of “Chief Compliance Officer (CCO)” is being added to company payrolls as we speak. But a dedicated seat at the ExCo table won’t matter unless CCOs have enough budget for compliance training.

If employees aren’t trained to prevent and manage compliance issues, the company is at risk of reputational damage, as well as hefty fines and penalties (ouch!). On the other hand, if companies invest sufficient resources into online compliance training, they’ll avoid these risks and reduce business costs.

Here are some of the top ways you’ll benefit from compliance training ROI:

Compliance Saves You Millions In Fines

Being noncompliant might put employees and customers at risk of accidents, but it can also burn a rather large hole in your company’s proverbial wallet. Why? Because monetary fines and levies are widely used forms of punishment for noncompliance, especially in industries like Finance, Tech, Manufacturing, and the Health Sector.

Take health and safety regulations, for example. In the US, if you have knowledge of an existing hazard that could harm employees, but does nothing to correct it, you could be looking at fines of up to $132,598 per violation [1]. For bribery and accounting violations, the Department of Justice levies criminal penalties, and the Securities and Exchange Commission, civil penalties. In fact, the average Foreign Corrupt Practices Act (FCPA) penalty in 2017 was more than $66 million [2]!

With numbers like these, it’s not hard to see that the costs of noncompliance can be devastating. But they can also be avoided. Invest in regular corporate governance and compliance training, preferably using online compliance training courses, and ensure that staff is practicing responsible, ethical and compliant behaviors at work. Your savings on penalties could just be the best form of compliance training ROI.

Compliant Companies Are Favored By Customers

You already know that the risk of noncompliance is hefty fines, but have you considered your company’s reputation? Today, it’s hard to keep compliance violations “under wraps.” Social media makes it easy for employees, customers, and suppliers to share news of accidents, accounting mistakes, and any other compliance mishaps.

The likely result is that customers become wary of purchasing goods and services from a company that doesn’t appear trustworthy. They might worry that their information is unsafe, or feel uneasy about supporting an unethical business. Indirectly, and over the long term, this damage to brand reputation can cost even more than fines.

There’s good news, though. The flip side of the compliance coin is that companies known for legal and ethical practices are trusted above their competitors. So, by investing in compliance training for staff and suppliers, you can keep your brand out of trouble and in favor with customers.

Compliance Prevents Workplace Accidents

Every company must adhere to health and safety regulations. For example, regardless of the industry, you’ll need to have a clearly marked fire escape in the office. Of course, some industries will have more regulations to contend with than others. Manufacturers, for example, must ensure that their facilities are safe and that their employees wear their safety gear at all times.

But without the proper training, managers and employees are unlikely to know which health and safety practices are important, or why they’re important. This puts them at risk of safety accidents, which can be expensive. Think about medical bills, equipment repairs, and even the cost of replacing employees who decide to leave the company or move into a different role.

One of the benefits of compliance in business is that these costs can often be avoided. Through regular compliance training, you can promote a safety-first culture in the workplace, and prevent nasty accidents. This way, you’ll not only save on costs, but you’ll create a work environment where staff feels safe and secure, too. This, of course, is likely to increase their productivity.

The Cost Of Compliance Training Is Smaller Than The Number Of Compliance Issues

Now, you might be thinking that the benefits listed here sound great, but that training sounds expensive. You’ve probably even implemented compliance training before and spent heavy resources on venues and travel to ensure that everyone receives the same training.

What if there’s another way, though? One where compliance training doesn’t need walls, instructors and printed training packs. An approach that enables you to achieve all the benefits of compliance training ROI, without the big expenses.

By using compliance training software, you can make training repeatable, accessible and efficient. Develop online compliance training courses that employees can access anytime, anywhere—even on the job! Even better if courses are mobile compatible. Then, all that’s left for you to do is update these courses when regulations and best practices change.

The upfront expenditure on an online compliance training approach will end up costing less than the penalties, reputational damage, and accidents that can result from compliance violations. In other words, a powerful Learning Management System (LMS) like TalentLMS has made it easier than ever for you to reduce business expenses and achieve a high compliance training ROI.

Conclusion

Placing compliance training on the backburner puts your company at serious risk. On the other hand, spending on compliance training can save you time, money and reputation. This is even truer when eLearning is leveraged to make training repeatable, sustainable and cost-effective in the long run. Are you realizing your maximum compliance training ROI?

References:

[1] OSHA Penalties

[2] Foreign Corrupt Practices Act

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