By Pam Ramsbott

Organizations have historically prioritized compliance training to help protect the business from legal, data privacy, and security issues, and to satisfy regulatory requirements. Today more than ever, we know that not only do compliance programs mitigate these risks, but they are also an essential for creating strong cultures of compliance and positive and ethical work environments.

In this blog post, we will explore how compliance training can contribute to strong corporate culture and the many benefits of investing in compliance programs. We’ll discuss the importance of an ethical foundation, how compliance training can help foster trust and honesty, and how it can improve employee morale and job satisfaction. We’ll also look at the link between compliance training and increased productivity. Read on to find out more!

What role does compliance training play in corporate culture?

Compliance training is often thought of as a required training that employees complete with the goals of helping to ensure that organizations are aware of and compliant with all relevant laws, regulations, and policies. It can often be seen as an annual “check the box” activity, but the lesser-known role of compliance training – when done thoughtfully and thoroughly – is that it can also help create and maintain a positive workplace environment!

Anyone who has started a new job can attest to the fact that knowing what’s expected of you can make you feel more comfortable and secure in the workplace. When employees are provided with information on how to adhere to applicable regulations, they are better equipped to understand their roles and responsibilities in the organization. Compliance training can also create an ethical corporate culture by educating employees on the importance of adhering to HR (Human Resources) policies, codes of conduct, and upholding the values that are integral to the company’s mission.

Focusing on compliance also encourages accountability among employees. Employees that understand what is expected of them from a legal standpoint may be more likely to take responsibility for their actions or be held accountable if something goes wrong. This type of transparency promotes a higher level of trust between employers and employees, since everyone knows that there are consequences for infractions or misconduct.

Why organizations should prioritize compliance training

Compliance training is a business imperative no matter the organization size or industry.

Investing in compliance training and creating a strong compliance culture can help organizations avoid financial penalties. When an organization is non-compliant, it can result in fines, penalties, and lawsuits that can have a direct impact on the financial health of an organization. By adhering to compliance requirements, organizations can avoid unnecessary financial burdens and compliance training can be helpful in this process. When employees understand their obligations under regulations such as data protection laws and health and safety legislation, it helps them avoid making errors that could incur possible financial penalties, which can be extremely damaging to any organization’s bottom line.

Organizations that operate on a global scale should particularly prioritize compliance training. When facilitating international business, compliance ensures that the organization can navigate the complexities of different legal and regulatory environments in various countries. This can be important from the perspective of mitigating legal risks and financial burden as well as ensuring that global cultural norms and expectations are known and recognized by all employees within the organization.

With 87% of respondents to a McKinsey consumer survey declaring that they would not do business with a company if they had concerns about its security practices, it is no surprise that good compliance practices are a top priority for companies and their customers. Aside from protecting your organization, employees and customers from potential risks – such as malicious actors, cyberattacks, or fraudsters – a strong commitment to compliance provides more confidence that data is being handled securely within a trustworthy environment, increasing customer satisfaction levels accordingly. It stands to reason then, that demonstrating a commitment to compliance can be a competitive advantage. Organizations may find that customers and partners prefer to engage when they know businesses are operating ethically and responsibly.

Organizations should prioritize compliance training as it offers numerous benefits which far outweigh its cost – both financially and socially – helping create a safe working environment while protecting a company’s bottom line from potential fines or lawsuits along with improving employee morale, loyalty, productivity levels, and customer satisfaction levels too!

The business benefits of building ethics into compliance training

Ethical values are essential components of compliance training, guiding employees to make decisions and conduct themselves in a manner that aligns with moral principles and legal standards.

When designing compliance training programs, incorporating specific ethical values helps create a foundation for responsible behavior. When employees understand their company’s core values and standards of behavior, it can lead to a more positive work culture. Having clear policies and guidelines in place helps ensure that employees act ethically and responsibly. It also allows organizations to quickly identify and address any potential issues or violations without fear of repercussions.

An ethical foundation is important for any organization striving to build a positive work culture and cultivate responsible employee behavior. Consistent compliance training can help reinforce these values by educating employees on their obligations under law while encouraging them to act according to established standards of conduct at all times. With a solid ethical foundation in place, organizations can create an environment where employees feel comfortable expressing themselves without fear of repercussion or retaliation– leading ultimately towards a healthier and more ethical workplace.

Can compliance training help create a culture of honesty and trust?

An ethical foundation is important for any organization striving to build a positive work culture and cultivate responsible employee behavior. Consistent compliance training can help reinforce these values by educating employees on their obligations under law while encouraging them to act according to established standards of conduct.

According to Ethisphere’s report from their Culture Quotient (CQ) assessment with 1.5 million responses from over 150 organizations, 93% of participants indicate a willingness to report misconduct if they were to observe it, hypothetically speaking, yet only 54% of employees who observed misconduct in the past 12 months reported the matter.

Strong compliance programs and an investment in compliance training can foster a positive workplace culture that could help reverse these concerning trends. By providing clear and accessible training to all employees, your organization can give them the tools they need to identify unethical or discriminatory behavior. And when employees notice that their organization is committed to compliance, that can help build a sense of trust and transparency that makes them feel more secure and empowered to voice their ethical, safety, or security concerns within the workplace.

Security among employees is also a benefit of compliance programs. By helping employees identify potential risks or threats and how to respond appropriately when faced with such situations, they can have a greater sense of security in the workplace. Delivering compliance training that provides guidance on how to act in certain scenarios helps organizations and employees stay safe while still performing their roles effectively.

Compliance training can also promote a sense of respect amongst coworkers by providing education on how to interact professionally with one another. Employees learn appropriate communication etiquette as well as respect for diversity among colleagues. This investment creates an environment where employees feel more comfortable expressing their ideas without fear of judgement or criticism from others, allowing them to work together more harmoniously towards achieving common goals.

The impact of compliance training on employee morale and job satisfaction

Compliance training can have a positive impact on employee morale and job satisfaction. According to Gallup, employees who responded to the question “I feel connected to my organizations culture,” are 3.7 times as likely to be engaged at work.

Knowing that company policies have been established for the benefit of everyone within their organization can give each employee a sense of duty in upholding those policies. When an employee does so and understands how their compliance with these policies benefits their colleagues, it can lead to a sense of accomplishment. And when their compliance is acknowledged within the organization – with a completion certificate, badge, or automated email notification, for example – this may lead to a feeling of being valued and appreciated for their contribution to the organization.

The link between compliance training and increased productivity

Compliance training has a direct link to increased productivity in the workplace. Compliance training provides employees with the knowledge they need to identify and handle potential risks or threats quickly and efficiently. For example, Litmos’ customer LaborMax was able to mitigate more than $17 million USD in cyber security risk, yearly, by implementing cybersecurity training through the LMS. Proper compliance training also allows employees to focus on their tasks without worrying about potential legal issues or safety concerns, which can lead to improved efficiency.

Compliance training can also help reduce costly mistakes due to lack of knowledge or misunderstanding of regulations. Training employees on their legal obligations and expectations not only saves money that might be spent on hefty fines or lawsuits, but also reduces wasted time from dealing with corrective measures after a mistake has been made. Having a comprehensive understanding of relevant laws also allows employees to make informed decisions quickly instead of wasting energy debating potential solutions or consulting outside sources for information. This increases overall efficiency by shortening decision-making processes and allowing employees to perform their tasks more effectively.

In summary, investing in compliance training offers numerous benefits for organizations both financially and socially, by creating an atmosphere of trust between coworkers while increasing employee morale and job satisfaction. It also provides employees with the knowledge they need for making informed decisions quickly while staying up to date on changing laws and regulations so organizations can always remain compliant – all leading to increased productivity and job satisfaction!

If you’re ready to explore the core concepts, challenges, and best practices for building an effective compliance training program, start with Litmos’ “Compliance Made Easy Guide” – a complete guide to compliance training.