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A company that fails to comply with important rules, whether its own or the government’s, can find itself paying serious fines. But new strategies are emerging to keep employees on the compliance track and keep more money in the company checkbook.
Recent research from CYPHER Learning found that the average American organization pays out $1.2 million every year thanks to basic rule breakers. Keeping your employees informed is a particularly thorny issue when it comes to data management; While EU-based companies have lived with General Data Protection Regulation (GDPR) rules for years, the US environment has been less overtly stringent, until 2024, when more than a dozen state regulations will take effect on data compliance.
U.S. businesses will need to pay attention to all of these on a state-by-state basis, as well as numerous federal OSHA, safety and financial regulations launching or changing this year. There is the potential for chaos in even the most conscientious organizations. So how can they help employees adhere to multiple new roadmaps?
It’s not as simple as sending an email or Slack message with updated regulations. Employers must understand the changing rules to interpret and apply them. Few set out to deliberately break the rules and sow chaos, but organizations must work diligently to keep everyone out of control, with systems that communicate effectively and enforce compliance regulations.
To support employee efforts to recognize and follow the rules, here’s a look at the top six strategies to consider.
Related: 3 Ways Companies Are Keeping Up with Regulatory Changes in 2024
1. Appoint a “Lead Compliance Guru”
It sounds simple, but many organizations, especially small businesses, don’t have a dedicated person responsible for compliance. While compliance regulations such as workplace safety may fall to HR, cybersecurity and data compliance issues may fall to IT. Tax and financial compliance can be the domain of the accounting team. While it is important for subject matter experts to understand and help decipher regulations, ultimately there should be one person responsible for informing everyone in the organization about the regulations they need to know.
2. Update the training and make it fun
Compliance training doesn’t have to be boring and time-consuming. New regulations are usually publicized well before they go into effect, so HR and learning and development staff will typically have time to create training materials. It’s better for all students if organizations break courses into smaller, more digestible sessions. And don’t underestimate the business value of gamified learning; employees respond and this calms the boredom. According to a study by the Aberdeen Group, 69% of workers are likely to stay loyal to an organization for at least three years if the company includes gamified training and upskilling in its employee packages.
3. Make small updates to existing courses
Don’t have time to create an entire course on the latest OSHA compliance regulations? Incorporate new compliance knowledge into existing training courses. For example, if you’re training your organization on workplace safety rules, incorporate the latest OSHA regulations for everyone to review by eliminating material that is no longer valid, or create a mini-course to introduce the new regulatory changes.
4. Automatically remind employees
If busy employees only receive compliance updates at the beginning of each year, they may forget important rules within a matter of months unless HR or a compliance officer stays on their radar. It’s easy for important rules and regulations to go unnoticed, so set up periodic automatic emails or instant messages to remind employees to review the latest regulations. For example, security-first organizations constantly inform employees of new phishing and spearfishing schemes. Borrow such tactics by automating compliance reminders.
Related: 5 Practical Strategies to Instill a Culture of Compliance on Your Team
5. Post reminders everywhere
As more organizations go remote or hybrid, organizations can’t simply post compliance updates on a bulletin board in a break room. Use a variety of channels to keep employees informed: post policies online, set up instant messaging group chats, and send reminders during monthly company meetings or off-site. This omnichannel strategy also reminds employees how important compliance is to the organization.
6. Empower employees and reward them
More employees are likely to keep key rules in mind if compliance records are added to employee reviews or if good performance is rewarded. Violating the rules can cost companies millions of dollars, so small incentive programs for completing compliance training or adhering to compliance regulations (e.g. extra personal time off) can save a lot of money. Framing specific training goals in annual reviews gives employees an achievable goal and motivates them to keep up with changing regulations.
New or evolving rules and regulations are a reality of business life. How employees adopt these new rules – and the associated education and training processes – can make a big difference in terms of organizational performance and financial profits. Since hefty fines for breaking the rules are a frequent reality, it pays for employers to take compliance training seriously. Implementing small changes in how employees learn and ensuring that they understand the new rules and are held accountable can minimize the cost of unintentionally violating the rules.