Regulatory compliance training: build a better program
Many organizations see regulatory compliance training as a box they have to check. But it’s an opportunity to build a vibrant, risk-based culture to protect against costly missteps.
“Creating — and maintaining — a culture of compliance, where concerns are voiced, countenanced and addressed, engenders employee trust and creates an atmosphere that largely prevents both ethical and legal infractions,” says Michael Volkov, CEO and Founder of Volkov Law Group.
At its most basic, regulatory compliance training educates employees about key regulations they must follow. At its best, it inspires employees to take a more active role in promoting compliance.
This article will help you build a more effective compliance training program by explaining:
- Industry standards
- Privacy regulations
- Anti-bribery and corruption
- Workplace harassment
- Discrimination
- Ethics
This isn’t an exhaustive list, but it should spur some consideration about your business’s risks and how employees can actively prevent them. Remember, even though the cost of building regulatory compliance training can be high, not training also comes with a price.
“Generally speaking, an ounce of prevention is worth a pound of cure. But in compliance, an ounce of prevention is now worth a treasure trove of gold,” says Volkov.
More specifically, disengaged employees — often a product of poor training — can cost companies up to $550 billion in lost productivity.
Who is responsible for regulatory compliance training?
There is no one person responsible for regulatory compliance training. Instead, multiple employees at multiple levels work together to deliver engaging training that meets the proper requirements.
The people responsible for compliance and regulatory training include:
- Board of Directors: The board defines the rules and regulations the company should follow. This is the basis for employee training.
- Chief Compliance Officer (CCO): Also a board member, the CCO should actively oversee the design and deployment of the compliance activities employees will learn about through training.
- Compliance Officers/Specialists: Compliance team members should create and distribute the training.
- Management: Department leadership should model compliance for employees and encourage them to take regulatory compliance training seriously.
What compliance and regulatory training is required for companies?
The US Department of Justice’s Evaluation of Corporate Compliance Programs, updated in March 2023, offers overarching guidance about the features well-designed regulatory compliance training programs should have.
As helpful as their guidance is, other types of compliance and regulatory training are required for companies, some of which are enforceable by law. These include:
- Industry regulations: Most industries have a regulatory body that enforces certain employee conduct to meet larger compliance and ethics goals.
- Laws: Companies must follow the applicable laws of their country. Considering your location is essential since laws governing discrimination or payroll, for example, often vary.
- Company policies: Many companies also have policies they expect employees to follow, like codes of conduct. Regulatory compliance training is a great place to discuss topics in the employee handbook and any emerging issues with employees.
Four compliance training components regulators will look for
According to Volkov, regulatory compliance training isn’t just for training’s sake.
“Simply adopting training for its own sake is an ineffective strategy that will not satisfy regulatory expectations,” Volkov says.
Instead, consider how these core compliance training components can enhance the effectiveness of your program overall:
- Materiality: Your training should cover topics deeply relevant to your business.
- Planning: Carefully design and execute training rather than trying to adopt a one-size-fits-all approach.
- Availability: Training should be available often and in multiple formats, including microlearning.
- Implementation: Roll out your programs gradually. Offer individual modules or training on critical topics first rather than rushing to buy a block of training courses.
How to build effective and engaging regulatory compliance training courses
Building a practical regulatory compliance training course can require a sizable investment in time and money. However, genuinely engaging training can save you money in the long run by inspiring employees to champion a culture of compliance that prevents costly regulatory fines and penalties.
Here’s how:
- Assess your risk: Educating your employees about regulatory risk starts with understanding the risks. Thoroughly analyze your risk landscape to identify the areas that pose the greatest threat to your organization.
- Identify relevant laws and regulations: Next, assess the laws and regulations that are in play in your industry and area. This ensures you won’t forget any key topics that can lead to regulatory consequences.
- Develop a training schedule: How often do employees need training? And at what intervals? Tools like microlearning can unlock training opportunities outside of once-a-year, half-day training. Understanding how frequently you’ll provide training will help determine your content needs.
- Design content: Comprehensive training libraries can be a great resource, but it’s important to supplement that with content unique to your business. Consider leveraging behavior science to change how your employees engage with compliance activities.
- Track completion: How will you determine if employees genuinely engage with training? Proving that employees complete courses is a vital part of satisfying regulations. You can make it fun, too. Incorporate gamification, like end-of-course quizzes, to make progress reports more exciting.
- Make training accessible: Even the best training is useless if employees can’t access it. Employees should be able to pull up training anytime, anywhere — even if they work remotely.
- Adopt regulatory compliance training technology: The larger your organization gets and the more complex regulations become, the more difficult it can be to manually manage compliance training. Technology can make the learning experience more engaging while still satisfying regulatory standards.
Regulatory compliance training online
There’s a lot for you and your employees to keep track of when it comes to compliance. You must stay abreast of ever-evolving risks and regulations, while your employees must remain vigilant to avoid exposing the company to legal or regulatory action.
Online regulatory compliance training from Diligent unlocks the world’s largest compliance training library. Tap into engaging modules your employees will genuinely enjoy on critical topics ranging from diversity and data privacy to healthcare and third-party compliance.