How to reduce costs with compliance training

Cost Effective Compliance Training

Regardless of what industry your organisation is in, there will be policies and regulations that need to be adhered to. Educating employees about legal policies that are relevant to their job role is vital to protect an organisation. An array of topics fall under the term ‘compliance’, such as health and safety, diversity, anti-harassment and HR law. Compliance relates to all departments and job roles, and employees need to be knowledgeable about laws that affect them.

Implementing an effective compliance training programme has become more important than ever, especially in certain industries. The financial sector has seen the rising cost of compliance, with its regulatory costs expected to more than double over the next five years. A survey found that firms typically spend 4% of their total revenue on compliance, but that could rise to 10% by 2022. This is mainly due to the increased demand for digital services and the implementation of online banking, account management applications and payment apps causing increased regulations. The cost of compliance for the financial sector grew from $16 million to $30.9 million between 2011 and 2017.

Another key area for compliance is health and safety, which can have a significant impact on businesses. In 2013/14, it was estimated that health and safety accidents cost businesses £14.3 billion, with incidents such as slips, trips and heavy lifting being the most common. Compliance training can be implemented as a preventative course of action for health and safety compensation claims, saving an organisation money whilst also showing employees how to avoid harming themselves and others.

An effective compliance training programme can mean significant cost savings for a business, alongside a wider range of benefits. It not only protects the employees and the company from legal complications, but also enables workers to safely complete their jobs, in full accordance to the law. Fully compliant employees will equate to fewer health and safety accidents, whilst setting a widespread expectation of acceptable employee behaviour, thereby creating a consistent working culture.

This was the case for Soletanche Bachy, who used Wranx for Health and Safety Training. The use of our solid reinforcement tool ensured that important knowledge was continuously strengthened, consequently resulting in a significant reduction in workplace accidents. Better health and safety also improves morale and productivity within a workforce, ultimately boosting the bottom line.

Furthermore, educating employees in compliance means that they are given the independence to identify and manage situations that could have led to costly fines or legal action. Alongside saving money for the company, compliance training leads to better efficiency and consistency within the office as employees in specific departments are aware of the actions to take to remain compliant. Internal processes run smoother, resulting higher productivity levels.

Having a compliant business is also vital for keeping employee retention rates high. In short: the safer employees feel, the happier they are at a company.  When that’s not the case, it can prove to be expensive. It costs between 30% and 50% of an entry-level employee’s annual salary to replace them. A compliant workforce will ensure that the organisation has an inclusive and safe working atmosphere, which is appealing to new hires.

Overall, implementing an effective compliance training programme is beneficial for any organisation, particularly in terms of saving money. Understanding organisational and legal policies enables employees to complete their job in a safe manner,  potentially reducing health and safety accidents, which can lead to high compensation claims.

Having knowledgeable employees who can identify risks and know how to adhere to specific laws leads to internal processes running more efficiently, boosting productivity levels. A unified and productive office not only improves employee morale, but correlates with higher employee retention rates, better company performance and increased profits.

Written by: Persia Shahkarami

Persia is passionate about helping organizations improve employee engagement across their professional development initiatives.
Published: 15 Jun, 2022