The Relevance of Compliance Training
The Relevance of Compliance Training Compliance training helps in understanding the legal boundaries within which an organisation operates. It serves the purpose of educating employees on the laws and regulations pertaining to their industry or specific job function.
Thus, compliance training provides the legal framework, which assists in enhancing the relationship between employees and employers of an organisation. Compliance training is the key priority of all organisations as it helps an organisation to meet its legal obligations and standards.
Organisation gives compliance training to their employees to-
- Explain the importance of rules, regulations, and policies that apply to their sphere of work.
- Define what is expected of them in the workplace.
- Inform them of the consequences of the non-compliances.
- Avoid penalties and liabilities for the company.
Compliance depends upon interpretation placed upon it by those who have to ensure it. The main aim of compliance training is to make the learners understand the concept and explain what the organisation expects from them. The learner should be able to assess the situation and take appropriate decisions about what they should do and what they should not.
The main reason for implementing a compliance training program is to mitigate the potential penalties and reputational damage that a breach might bring about. There are a few crucial reasons for implementing well-designed compliance training in your organisation- TAX IMPLICATION
The Relevance of Compliance Training
Encourages a better workplace culture–
Having a good compliance training program ensures employees are trained to understand the expectation, standards and obligations towards the organisation and towards the customers. Providing adequate training tends to make employees more confident in performing their tasks. They understand their roles better and are more likely to take their obligations seriously.
Help keep pace with change–
There are cases where business often runs the risk of violating the law if they fail to keep pace with the latest changes, particularly in the industries that are subject to frequent changes in compliance matters. For this reason, organisations often opt for frequent training programs to keep their employees abreast of current trends.
Increase business efficiency and productivity–
Developing proper compliance training program enables the employees to act within the stipulated framework and make correct decisions. It also helps the employees to avoid costly errors that could attract hefty fines and/or other legal sanctions.
Ensures standardization and uniformity–
Compliance training ensures greater standardisation and uniformity across the organisation, and at a more general level, it assists in legal compliance and business strategy.
Adhering to procedures as a matter of compliance ensures greater transparency within the organisation. With greater transparency, it becomes easy to track when there is a compliance violation.
Effective compliance training significantly contributes to reducing risk. Therefore, the implementation of proper compliance training will ensure that employees work within the regulatory parameters.
There are several areas where you need to provide training. These are sexual harassment, discrimination, and safety. Training should not be a one-time event but must be repeated for all new employees and held at least annually for all employees. It should inform employees what sexual harassment consists of and what the legal standards for liability are and instruct employees at all levels about mechanism and procedure in place for immediate reporting of infractions. In addition, the burden is on the employers to correct sexually harassing behaviour special consideration should be given to training those responsible for investigating such behaviour when it is brought to their attention.
ENACT AN EFFECTIVE COMPLAINT PROCEDURE
An effective complaint procedure is found where an appropriate response by management is taken Such as though investigation of all complaints and taking action to correct all offensive conduct in a timely manner along with other reasonable steps to prevent and correct non-compliances.
A compliance-training program should combine both training and certification. A quality compliance-training program ensures that employees have certain knowledge and skills. Certification should be maintained over time. This ensures that staff members are kept up to date with changes, and are reminded regularly of their obligations. It also facilitates the regular audit of the programs.
Compliance training and certification programs are the entry-level for business helping to trade in a fair market. This provides a robust structure to develop corporate culture and behaviour. For individual compliance, training is the passport to participate in the business as an employee. Without it, an individual should not be allowed to act on the employer’s behalf.
The above discussion indicates that compliance training refers to the process of educating employees regarding the laws, regulations, and company policies that apply to their day-to-day job responsibilities. An organisation that engages in compliance training typically hopes to accomplish several goals, such as:
- Avoiding and detecting violation by employees that could lead to legal liability for the organisation.
- Creating a more hospitable and respectful workplace
- Laying the groundwork for partial or complete defence in the event of wrongdoing by an employee despite the organisation’s training efforts.
Typically, most or all of the compliance topics are addressed in an organisation’s Code of Conduct and the organisation may offer employees annual Code of Conduct training in lieu of requiring employees to take multiple individual training programs.