With the rapid growth of regulations in recent years, risk management has taken on a new meaning in almost every industry. What was once a periodic review of financial and operational risks now requires managing the threat of being out of compliance with new laws and regulations.
- In the financial sector, the cost of complying with Dodd-Frank regulations is threatening the existing of community banks and credit unions. The cost to the industry in the year ending June 2016 was $10.4 billion, and over 60% of regulations have not yet been implemented.
- Health and safety regulations touch every workplace, and maximum penalties for OSHA violations nearly
doubled in 2016. Businesses spend $170 billion per year on occupational injuries and illnesses, and a single fatal incident could cost as much as $500,000 in penalties. - In the healthcare industry, the Affordable Care Act, HIPAA regulations, and new Joint Commission standards have driven up costs at an unprecedented rate.
The Cost of Non-Compliance
The examples we listed are familiar to most of us, but no matter what industry you are in, compliance is vital to your company’s existence. While the cost of compliance is high, the cost of non-compliance is much greater. Direct costs are only the beginning. Consider these consequences:
- Company reputation damaged by adverse publicity;
- loss of consumer confidence;
- Impact on recruiting and retention; and
- resources wasted in audits, investigations, tracking and reporting.
The good news is that modern enterprise learning methods and technology were built with compliance in mind. With the right programs in place, the right leadership support, and effective learning delivery, you can give your people the confidence of knowing they are audit-ready.
Make Learning the Foundation of Compliance Behavior
Most compliance training required by law or regulation has as an annual requirement or a certification valid for a certain number of years. It is easy to fall into the trap of training only when it is time to renew or report. You can overcome that with embedded learning.
Embed Learning in Work
Instead of providing annual training, integrate learning into daily activity. A modern LMS gives you the ability to deliver quick video lessons, quizzes, and interactive gamified learning to any device. If a regulation or program requires classroom training, reinforce it with spaced repetition.
Lack of technology need not be a barrier. A colleague who manages training for a multi-state construction firm developed a program of short safety and compliance reminders that supervisors deliver on site at the beginning of the work day.
A great user experience is essential. Compliance is unlikely if your people hate using your LMS.
Automate Notifications and Reminders
Configure your LMS to keep your people and their managers informed of certification and training requirements, and escalate notifications if there is no response. Most LMS vendors provide notification templates to make it easier.
Automate administration as much as possible. Don’t let human error expose your organization to compliance risk.
Keep Programs Updated
Update your learning and assessment tools when requirements change. If you contract with an e-learning provider, make sure you work with one that provides timely updates.
Measure and Report
Give everyone complete visibility into your compliance programs by leveraging the reporting in your LMS.
- Create a dashboard to keep learners informed of their progress and requirements.
- Track internal measures to know what is working and what isn’t, and act quickly when it is needed.
- Work with your risk manager to correlate learning programs with risk KPIs and quantify the impact of your programs. If you see an improvement in results, celebrate it by sharing the news.
- Keep executives and managers informed with interactive real-time compliance dashboards.
Make it Fun
Compliance is serious business, but a little laughter helps learning retention. Inject some humor into learning scenarios.
Compliance touches every person in your company, from the time you write a job posting to the procedures for separating a person from the organization. Use these tips to embed learning in your organization so compliance becomes “the way we do things around here.”
Pixentia is a full-service technology company dedicated to helping clients solve business problems, improve the capability of their people, and achieve better results.
+1 903-306-2430,