What Is Compliance Training? (Definition And Examples)
By Indeed Editorial Team
Published 15 October 2022
The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.
Legal compliance is a key responsibility for corporate executives and management teams. Laws and industry regulations can have a significant impact on the policies, plans and operations of a company. Learning about training for compliance can help managers and other leaders within a business lower risk and prepare teams. In this article, we discuss the significance of compliance training, examine why managers use it, list examples and offer tips for establishing a training programme for compliance.
What Is Compliance Training?
Compliance training provides employees with an opportunity to learn about the laws and regulations pertaining to their jobs. There are several types of training programmes, some of which apply across all industries and others that are role- or industry-specific. These training procedures are usually mandatory and time-sensitive. Employees are typically required to finish the training programmes within predetermined time frames for a firm and its employees to comply with the law.
Why Do Managers Use Training For Compliance?
Training for compliance can be quite helpful for a firm, besides the fact that the government usually mandates it. Compliance promotes a unified work environment. Managers may build an inclusive and respectful work environment by promoting awareness of safety, tolerance and security in the workplace. Other factors that may make compliance useful for managers include:
Fewer lawsuits: Employee training on pertinent laws governing a sector can aid in safeguarding a business against future legal claims.
Reduced workplace injuries: Safety-aware employees are usually less likely to sustain workplace injuries, which might lead to a decrease in employee absenteeism and injury claims.
Employee awareness regarding risk management: When employees understand the value of compliance, they take an active role in the organisation's risk management strategy.
Increased productivity: Employees that receive training are likely to make better decisions and behave more responsibly, and positive behaviour can boost productivity at work since self-regulatory employees typically need less management intervention.
Examples Of Training For Compliance
Here are a few examples of common compliance topics you can consider training professionals on:
Every organisation has its own set of conduct guidelines within the regulatory constraints that control its industry. This may include rules pertaining to corruption, fraud and conflicts of interest. Employees who receive ethics training are better equipped to make moral choices and may also have the knowledge they require to hold others and themselves accountable in conflicting circumstances.
An anti-harassment training course typically provides training to employees regarding inappropriate interpersonal conduct in the workplace. Employees receive training on how to recognise several forms of harassment, including sexual harassment and discrimination based on gender, age, sexual orientation or religion. They may also receive training for developing efficient defence mechanisms against harassment in the workplace.
By highlighting the features and benefits of a diverse workforce, diversity training courses seek to lessen prejudice and discrimination in the workplace. These courses cover how to deal with diversity in aspects like ethnicity, gender, sexual orientation, age and ability. By outlining techniques to spot unconscious bias and emphasising shared objectives, this type of training facilitates positive employee engagement.
Data protection and privacy training
Most organisations, regardless of industry, handle some type of sensitive data. This may be basic employee and client information, or it may be information that requires more security, such as detailed financial records. Data protection and privacy training provides employees with the technical skills required to practise safe data handling.
For any manager, making sure that employees are safe at work is a top priority. Although there may be higher physical risks in some professions and industries, such as manufacturing or construction, even companies with typical office environments require establishing some basic safety measures in place. Workplace safety training covers information on first aid techniques, acceptable emergency responses, handling incidents and detecting and reporting hazards.
Tips For Developing A Compliance Programme
If you are tasked with developing a compliance programme for a company, here are a few guidelines that you may find helpful:
Busy employees with a full work schedule may find the prospect of a lengthy compliance course overwhelming. You can ensure more active engagement with the compliance programme by providing employees with microlearning opportunities, which cover one learning objective at a time and take only a few minutes to complete. Besides being brief, microlearning can also make learning easier.
Use digital technology
If you choose to plan physical meetings for a compliance programme, you may risk team members being absent. Digital compliance programmes can provide a more updated and flexible approach to the process. By making compliance programmes available in a digital format, such as through interactive e-learning applications, employees can easily access courses and complete them at their own convenience.
Keep things simple
Concise content is helpful for ensuring that employees actively engage with training manuals. It also makes it easier for employees to remember and retain pertinent data. It is beneficial to provide snippets of policies or laws and supply simple explanations of their most relevant points.
Provide the correct information
To safeguard personnel and reduce risks for business, it is critical that you provide accurate and up-to-date information in compliance courses. Depending on the sector of business you are in, the laws may alter periodically. Regularly updating compliance data can assist you in making sure team members are aware of how to follow rules and practise safety in the workplace.
Benefits Of Training For Compliance
Here are some benefits that training for compliance can offer a firm:
The ability to prevent incidents of noncompliance is a significant advantage of training for compliance in a business. If employees do not obtain the right training, they may quickly dismiss certain requirements, especially in businesses with a lot of complex laws and processes. These noncompliance incidents may result in fines or delays. They may also have an impact on an organisation's standing in a sector. Providing training for all compliance needs helps increase the likelihood that staff may comprehend and adhere to proper processes.
Reduced levels of employee supervision
Training for compliance also helps to reduce the amount of supervision required to ensure that staff members are following procedures. You can train staff members and then let them handle compliance responsibilities on their own, saving time and resources compared to spending time and money, making sure that individual contributors are following the right procedures. You can disseminate knowledge and equally distribute compliance obligations across all levels of the organisation, rather than having one or a few people who are familiar with all compliance rules govern entire teams.
Influences workplace culture
Making compliance and training a part of a company's culture and identity is one reason to choose training for compliance above merely giving employees a manual and asking them to follow it. You can show that the company values compliance and invests in staff training by holding regular and interesting compliance seminars. This may motivate employees to further their education and pick up new skills relevant to a field.
Related: What Is Organisational Culture?
Minimises company liability
Training for compliance can help a business reduce liabilities. The company may demonstrate that it is making every effort to educate personnel by developing and administering a training programme. A training programme can demonstrate that the company takes required precautions to prevent issues and address them if they do occur.
What Are Compliance Metrics?
Compliance metrics are indicators which can help assess the effectiveness of a compliance programme. A compliance programme outlines the processes and practises that professionals can use to guarantee that the enterprise is adhering to regulations. Using compliance metrics, you can quantify data demonstrating your performance in relation to compliance measures.
Examples Of Compliance Metrics
These are a few examples of compliance metrics:
Recognition and resolution time frame: This metric gauges the duration of time a compliance team takes to identify an issue. It also measures the time it takes for the successful resolution of an issue.
Compliance cost per incident: A compliance budget incurs expenses for each incident that a compliance team tackles. You can gauge the effectiveness of the team in tackling problems by measuring this cost.
Total employee and client complaints: To gauge how frequently customers and employees voice concerns about operations, you can measure the volume of client and employee complaints. This is an important measure for compliance because this feedback can reveal issues the compliance team may have missed.
Explore more articles
- What Is Backtesting? (With Definition, Examples And Tips)
- What Is The Balance Of Payments? (And How To Calculate It)
- Understanding Agency Theory: Definition And Features
- How To Improve Project Management Skills (With Tips)
- A Guide To Financial Markets And Services (With Examples)
- What Are Financial Projections? (With Types And Benefits)
- What Is A Business Imperative? (Definition And Examples)
- What Is Comprehensive Income: Definition And Examples
- Understanding the CFA Exam
- What Is Skilled Labour? (Types And How To Develop Skills)
- How To Create An Effective Differentiated Marketing Strategy
- A Comprehensive Guide To Different Types Of SQL Courses