There are different rules that a company must follow for it to continue to function, and these rules are created by either the government or an association of companies in the same industry. For example, there are rules guiding the food industry, these rules are in place to ensure that customers are not paying for and eating what is harmful to their health.
Also, there are rules to protect workers from being maltreated by the company they are working for. These rules must be obeyed, because going against the rules can lead to court cases, paying of fines or even stopping the company from production.
To avoid these fines and legal problems, companies make sure that their workers are trained to do their jobs according to the accepted methods, this training is called employee compliance training.
Why Employee Compliance Training is Important
Employee compliance training is important for companies. We have listed some of the reasons why it must be taken seriously.
Minimizing Risks and Liabilities
Failure to provide compliance training can lead to a higher risk of accidents, legal issues, and financial liabilities. For instance, in the construction industry, failing to comply with safety regulations could result in workplace accidents, lawsuits, and financial losses. Proper training reduces these risks.
Protecting the Company’s Reputation
An old saying is that ‘a good name is better than gold’, also, reputation is everything and more. No one will want to patronize a company that has a history of disobeying the safety rules of production, even if they have upgraded to the latest safety technology. With employee compliance training the reputation of a company is protected for more patronage, referrals, and profits.
Legal and Regulatory Requirements
Compliance training is important because it helps companies obey legal and regulatory responsibilities. Businesses must follow different laws and regulations; these laws are many, examples are labor laws, safety standards, data protection regulations, and industry-specific rules. If businesses fail to obey these laws it can lead to legal cases, fines, or even closing down the business.
Types of Compliance Training
There are different types of training:
General Compliance Training
General compliance training is a foundational component of compliance education for all employees within an organization. The reason for this training is to provide a wide understanding of the key rules and regulations that are available for different industries (beyond the employees’ company).
This type of training is a must for every staff member and explains the basics, to make sure that employees have a common knowledge base about legal and ethical standards (this is a must). In general compliance training, employees are taught different topics. This includes but is not limited to:
- discrimination and harassment prevention
- data security and privacy
- workplace safety
- codes of conduct.
Employees learn about the company’s policies, reporting procedures, and the consequences of non-compliance.
Industry-Specific Compliance Training
Industry-specific compliance training is designed to address the unique regulations and requirements of a particular sector. Different laws work for different industries, this must be because they also differ in their operations. Some rules that apply to the healthcare industry are different from those of the automobile industry. Let us check out some industries and their rules.
- Healthcare
In healthcare, for example, employees must go through training for him/her to understand the Health Insurance Portability and Accountability Act (HIPAA). This law governs patient data privacy (a healthcare worker cannot divulge the health information of a patient to another person except family) and security, and non-compliance can result in severe penalties.
- Finance
For those in the financial industry, compliance training is centered around laws such as the Dodd-Frank Act and the Sarbanes-Oxley Act. These regulations are crucial for preventing financial misconduct and fraud.
Customers want to know that their money and information are safe. In financial institutions, employees are taught about risk management, how to prevent money laundering (AML), and the rules that govern financial markets.
- IT
In the IT sector, compliance training focuses on cybersecurity and data protection. Given the increasing threat of cyberattacks, employees are educated on how to safeguard sensitive data, recognize potential security risks, and comply with industry-specific standards like the Payment Card Industry Data Security Standard (PCI DSS).
Role-Specific Compliance Training
Managers: Role-specific compliance training tailors the content to the responsibilities of different positions within an organization. Managers, for instance, receive training that emphasizes leadership in maintaining a compliant workplace.
They need to know what to expect from every worker, such as the type of certification or training staff should have before he/she can perform a role or operate a machine. It also includes
- understanding legal obligations,
- setting an example for their teams, and
- effectively addressing compliance issues.
Employees: For non-managerial employees, role-specific compliance training hones in on the day-to-day tasks and responsibilities of their positions. The training is to make them know how to do what they need to do and the best way to do it without going against the rules and regulations of the industry or the company.
Onboarding, Ongoing, and Periodic Training
Onboarding training is typically the first exposure new employees have to compliance standards within the organization. It teaches the new employees the company’s:
- values,
- code of conduct, and
- general compliance requirements.
Ongoing and periodic training, on the other hand, serve as refreshers and updates. This is to make sure that workers are always at alert to do the right thing and let them know if there is a new law or a change in the previous ones.
Delivering Compliance Training
There are different ways to train employees. Some of these ways are:
In-Person Training
In-person training involves teaching employees compliance principles and guidelines face-to-face. This traditional method allows trainers to interact directly with trainees. During these sessions, trainers can:
- explain complex concepts
- answer questions
- engage in discussions with the participant
- building a strong personal connection with trainers
- enhance the learning experience.
But, in-person training can be time-consuming and costly, especially if employees are not working from the same building or location. It may also be challenging to schedule sessions that accommodate everyone’s availability.
Compliance Training Software
Compliance training software is a modern way to provide employees with compliance education. It involves delivering training materials online and using software applications. This method of training is very flexible, and it can be expanded as the company grows.
Employees can access training materials at their own pace and convenience, making it suitable for remote or distributed workforces. Compliance training software often includes features like:
- interactive modules
- quizzes
- progress monitoring and tracking
- communication app for quick dissemination of new compliance information
- digital forms and checklists.
While it lacks the personal touch of in-person training, compliance training software like iTacit is efficient, cost-effective, and ideal for large organizations with diverse training needs.
Creating an Effective Compliance Training Program
Developing a really useful compliance training program needs a complete process that takes note of many and all the important aspects. Here are the steps involved:
Identifying Training Needs and Objectives
Identifying the training needs of your organization is the first critical step. You may use compliance risk assessment to know the training needs. This involves understanding
- the specific compliance requirements,
- industry regulations,
- internal policies that are relevant to your business.
After identifying these needs, you will set clear objectives, this will allow you to know what you want each employee to learn, understand and apply. Objectives should be specific, achievable, and be in line with your organization’s compliance goals.
Choosing the Right Training Methods
Selecting the appropriate training methods is crucial. Consider the nature of your workforce, the complexity of the content, and your available resources. Training methods can vary from in-person workshops, e-learning modules, webinars, to a blend of different approaches.
Developing Engaging Content
The heart of any compliance training program is the content. Nobody wants to sit and listen to boring lectures. So, it is important to spice up the training content for it to be engaging as well as informative. Make use of:
- real-world examples,
- case studies,
- interactive exercises, and
- multimedia elements to keep learners involved and interested.
Assessment and Evaluation
To ensure the effectiveness of your compliance training program, incorporate assessments and evaluations. These should be carried out at various points throughout the training process to gauge employees’ understanding and retention of the material.
Conclusion
Compliance training is a must to avoid anything that can lead to legal problems or the shutting down of a company. Companies should endeavor to monitor their employees to make sure they take the appropriate lessons.
Also, training materials should be accessible anytime and from anywhere an employee is for efficiency.
