Regulations, laws, and standards constantly evolve, with specific laws, regulations, and rules existing in niche industries (think healthcare or insurance), in different regions (think cities, states, and countries), and in specific roles (think GDPR for email marketers).
Constant regulatory change creates a compliance risk for organizations, and companies must continuously monitor and communicate these updates to employees to avoid corporate risk, maintain your company’s reputation, and provide an inclusive, supportive environment for your employees.
To overcome these challenges, organizations must invest in a compliance-specific training strategy. Compliance training is pivotal in preparing employees with the knowledge and skills necessary to understand and adhere to regulatory standards.
In this article, we explore the nuances of compliance training in the workplace and share the positive outcomes of compliance training programs, examples, and best practices to ensure that employees are well-informed, ethical, and aligned with not only the organization’s values but also the laws and regulations the company is forced to comply with.
What Is Compliance Training?
Compliance training is a type of employee training that familiarizes team members with industry—or geographically-specific knowledge and skills that are mandated by legislation or regulatory bodies. It also familiarizes employees with laws that regulate how a company handles things such as hiring, safety, data privacy, etc. These training initiatives are mandatory to minimize risk, ensure workplace safety, and create a more inclusive workplace.
Examples of Compliance Training Programs
The umbrella of compliance training encompasses a number of different course types that are relevant to a company’s location, industry, and activities. Here are the most common types of corporate training programs covering government-mandated & industry-specific compliance policies.
1. OSHA compliance training
OSHA compliance training is designed to ensure workplace safety by educating employees about potential hazards, safety protocols, emergency procedures, and the proper use of safety equipment. This training is particularly important for industries where physical risks are prevalent, such as construction and manufacturing.
2. Cybersecurity training
In the digital age, cybersecurity training helps employees understand the importance of protecting sensitive information, recognizing phishing attempts, using secure passwords, and following best practices to safeguard company and customer data from cyber threats.
3. Ethics training
Ethics training focuses on promoting ethical behavior and integrity in the workplace. It educates employees about the organization’s code of conduct, the importance of honest decision-making, and avoiding conflicts of interest.
4. Diversity training
Diversity training emphasizes the value of diversity and inclusion in the workplace. It educates employees about different cultures, perspectives, and backgrounds, aiming to create a respectful and inclusive environment where all employees feel valued.
5. Anti-harassment training
Anti-harassment training addresses issues related to preventing harassment, discrimination, and bullying in the workplace. It informs employees about recognizing inappropriate behaviors, reporting procedures, and maintaining a respectful work environment.
6. Anger management training
Anger management training helps employees develop skills to manage their emotions and interpersonal conflicts constructively. This training can create a more harmonious work environment and better employee interactions.
7. Information security training like HIPPA
Information security training, such as HIPAA (Health Insurance Portability and Accountability Act) compliance training, focuses on protecting sensitive health information. Employees learn how to handle patient data securely, follow privacy guidelines, and comply with legal requirements for storing and sharing medical records. This training is critical in healthcare and other industries handling sensitive information, ensuring that data is protected and breaches are avoided.
8. Anti-bribery and corruption
This training educates employees about the laws and regulations surrounding bribery and corruption. It emphasizes the importance of avoiding unethical practices, adhering to anti-bribery laws, and maintaining transparency in business dealings.
9. HR law compliance training
HR law compliance training educates human resources professionals and employees on employment laws and regulations, such as fair labor practices, hiring and termination policies, wage and hour laws, and workplace discrimination laws. The training ensures that organizations follow proper management procedures, reducing the risk of legal claims related to unfair treatment, wrongful termination, or workplace misconduct.
10. 508 compliance training
508 compliance training focuses on ensuring digital accessibility for individuals with disabilities. It educates employees about creating and maintaining digital content that is accessible to all users, complying with Section 508 of the Rehabilitation Act.
11. GDPR training
GDPR (General Data Protection Regulation) training educates employees on the rules and regulations governing personal data protection for individuals in the European Union. It covers data collection, processing, consent, and individuals’ rights regarding their personal information. GDPR training is essential for organizations that handle EU residents’ data, ensuring compliance with stringent privacy regulations and avoiding hefty fines for data breaches.
Why Is Compliance Training Essential for Organizations?
Compliance training offers a range of benefits that extend beyond just meeting regulatory requirements.
- Legal adherence: Compliance training ensures that employees understand and adhere to laws, regulations, and industry standards relevant to their roles. This helps organizations avoid legal penalties, fines, and lawsuits resulting from non-compliance. By educating employees about legal requirements, organizations can minimize the risk of violating laws and regulations.
- Risk mitigation: Compliance training is critical in mitigating risks associated with various aspects of business operations. Organizations can prevent accidents, errors, and misconduct that could lead to financial losses and reputational damage by training employees on best practices, protocols, and safety measures.
- Improved workplace safety: Compliance training, particularly in areas like OSHA and health and safety, contributes to a safer work environment. Employees learn about potential hazards, proper procedures, and safety equipment usage, reducing the likelihood of accidents and injuries. A safer workplace reduces absenteeism, increases morale, and improves overall productivity.
- Data protection: In the age of digital transformation, compliance training on data protection and cybersecurity is crucial. Employees are educated on handling sensitive information, recognizing cyber threats, and maintaining data privacy. This training helps prevent data breaches, cyberattacks, and unauthorized access, safeguarding both company and customer data.
How to Build a Compliance Training Strategy
Here are some tips for creating a holistic and effective compliance training strategy for your organization.
- Align with larger business objectives: A successful compliance training strategy aligns with the organization’s broader business objectives. By understanding the company’s goals, values, and industry requirements, you can tailor the training content to address specific compliance needs directly relevant to the organization’s mission and objectives.
- Implement role-based training: Different organizational roles may have distinct compliance requirements. Tailoring training content to specific job roles ensures that employees receive the most relevant training to their responsibilities. Role-based training enhances engagement and helps employees understand how compliance directly applies to their tasks.
- Gamify your compliance training: Gamification in training makes compliance training more engaging and uplifts the employee learning experience. Adding fun elements such as points, badges, and leaderboards to the assigned tasks motivates employees to complete these training programs. It is one strategy that is a big motivator in modifying employee behaviors and implementing compliance training practically.
- Leverage microlearning for knowledge retention: Microlearning is an effective training method used for compliance training as it provides learning in subtle, short-timed bursts. Smaller learning sessions provide all the information necessary for learners to achieve a specific training objective in a short window of time. It also allows for continuous learning, making it easier for employees to stay current on compliance topics.
- Provide in-app compliance reminders and support on your digital workflows: Embed compliance reminders and guidance directly within the digital tools and systems employees use regularly, such as software applications or online platforms. In-app reminders deliver timely, contextual guidance when employees need it most, reducing mistakes and reinforcing compliance as employees complete their daily tasks.
- Lead with examples: Real-life examples and case studies make compliance training more relatable and practical. By showcasing scenarios that employees may encounter in their job, you help them understand the consequences of compliance breaches and the correct ways to handle such situations.
- Embed compliance training in the company’s culture: For long-term success, compliance training must be ingrained in the company’s culture. By emphasizing the importance of compliance in all aspects of the organization, from leadership to every employee, you create an environment where adherence to regulations is a shared value.
- Offer incentives: Encourage participation and motivation by offering rewards or incentives to employees for completing compliance training. These incentives could be in the form of certificates, recognition, or even tangible rewards. Incentives demonstrate that the organization values employees’ commitment to compliance.
- Ensure legal accuracy: Compliance training must be accurate and up-to-date with relevant laws and regulations. Partner with legal experts to ensure your training content is legally accurate and reflects the most current legal standards.
Examples of Corporate Compliance Training Program Failures
Without a compliance training strategy that enables employees with the contextual information and continuous learning needed to stay on top of regulations, organizations put themselves at major risk.
Here are three infamous enterprise examples of compliance failures to learn the risk of not preparing employees with the knowledge to be compliant.
1. Wells Fargo
Several fraudulent accounts at Wells Fargo clearly indicate compliance failure. Over 100 employees were fired for creating fake profiles and fraudulent applications to obtain money from the Small Business Administration Relief Program. The program was originally created to help small businesses amid the pandemic. For customers to trust Wells Fargo again, a strong culture of compliance needs to be instilled within the organization.
Source: complianceweek.com
2. H&M Germany
Data Protection Authority (DPA, Hamburg) handed out a fine of $ 41.3 mn, one of the biggest GDPR fines on record, for obtrusively storing the personal information and experiences of their employees. The company conducted ‘Welcome Back Talks’ post an employee’s absence and recorded details like their holiday experience, symptoms of illness, or medical diagnoses.
Source: complianceweek.com
3. Vodafone Spain
The Spanish DPA (the AEPD) fined Vodafone $9.72 mn on March 11, 2021, for violating the GDPR and other Spanish laws covering telecommunications and cookies. There were 191 individual complaints regarding Vodafone’s marketing activity, in which Vodafone was alleged not to have taken sufficient organizational measures to ensure it was processing people’s personal data lawfully.
How to Measure the Effectiveness of Compliance Training Programs?
Organizations must measure training effectiveness to make informed decisions about enhancing training strategies and allocating resources more effectively. Here is how you can measure the effectiveness of your compliance training programs.
- Completion and participation rates: Track how many employees complete the compliance training and the speed at which they do so helps gauge engagement. High participation indicates that the training is accessible and well-structured, while low rates might suggest content relevance or delivery difficulties.
- Assessment scores and knowledge retention: Quizzes and assessments measure how well employees understand and retain the training material. High scores and consistent knowledge retention indicate that the program is effective, while low scores may signal a need for more straightforward explanations or different teaching methods to improve learning outcomes.
- Behavioral changes and incident reports: Observing changes in employee behavior post-training and monitoring incident reports for compliance violations helps measure whether employees are applying their knowledge. A decrease in compliance-related incidents is a strong indicator that the training has successfully changed workplace behavior.
- Feedback from employees: Collecting post-training feedback via surveys or interviews provides insights into their experiences with the training program. Positive feedback shows that the content was engaging and relevant, while negative feedback highlights areas for improvement in delivery, content clarity, or engagement.
Challenges for Managing Compliance Training
Some common challenges that might lead to the failure of your compliance training programs include:
- Employee pushback: Some employees may resist compliance training, viewing it as time-consuming, irrelevant, or overly complex. This pushback can lead to low participation rates and poor engagement, making it difficult for organizations to ensure everyone is adequately trained and compliant with regulations.
- Conventional training methods: Traditional training methods, such as long, text-heavy presentations or one-time workshops, may fail to engage modern learners. These outdated approaches often lead to poor retention and application of knowledge, making it challenging for employees to absorb and fully implement the training in their daily tasks.
- Keeping compliance training programs updated: Compliance laws and regulations frequently change, and managing the continuous updating of training content to reflect the latest legal requirements is a significant challenge. Employees may follow obsolete guidelines if the training materials are outdated, putting the company at risk of non-compliance.
- Insufficient resources: Organizations may struggle with a lack of resources, such as budget, personnel, or technology, to manage and deliver compliance training effectively. Insufficient resources can lead to ineffective training programs that fail to cover key compliance areas, leaving the organization vulnerable to legal risks.
Compliance Training Clicks With Whatfix
With Whatfix, enable your end-users with the training and support to educate employees on compliance laws and provide process governance to help employees remain compliant.
With Whatfix Mirror, easily create a replica sandbox environment of your mission-critical workplace applications to provide risk-free, interactive, hands-on training to employees to help them adopt compliant processes.
With a digital adoption platform like Whatfix DAP, simplify complex regulatory concepts and seamlessly integrate in-app guidance into your employees’ workflows.
DAPs provide interactive, step-by-step guidance that’s personalized to each user’s role, enabling them to easily navigate compliance processes. DAPs enhance understanding and retention of compliance information through in-app walkthroughs, contextual tips, and real-time assistance. Additionally, DAPs offer analytics and insights that L&D teams can use to assess learner progress, identify areas for improvement, and tailor the compliance training experience for better outcomes.
Ultimately, these platforms transform compliance training into a user-friendly and efficient experience, driving better adherence to regulations and fostering a culture of compliance within the organization.
To learn more about Whatfix, schedule a free demo with us today!
