The business world today is increasingly focused on “compliance culture.” This term refers to a working environment that encourages and even incentivizes employees to behave ethically. Many companies invest heavily – up to $10,000 per employee – to train their workers and nurture this compliance-based attitude in their offices.
Of course, the hefty cost of building a compliance culture is nothing compared to the cost of non-compliance. For example, one New York bank was fined $185 million for failing to comply with industry regulations in 2015! Compliance is necessary to ensure safety, integrity, and honesty throughout the workplace – but it also keeps you from facing a massive regulatory fine.
But what exactly is a “compliance culture”? How do you build this environment in your company? That is what we’re here to discuss today.
Key aspects of a compliance culture
On its face, compliance might seem like a set of boxes your business needs to check to avoid getting fined. However, this concept goes much deeper than that; a compliance culture is about making sure everyone in your company understands and demonstrates ethical business practices.
Why should a business bother changing its current office culture? There are countless benefits to fostering a compliance culture in the workplace. We’ve already discussed the risk of penalties for non-compliance, but that is only one (admittedly very persuasive) benefit. Companies that focus on compliance tend to have higher employee morale, fewer instances of worker misconduct, and greater productivity!
With all that in mind, it’s important to remember that changing your workplace culture is a marathon – not a sprint. Here are a few key elements your business will need to adapt to usher in a compliance culture.
Compliance starts at the top
Compliance culture will never take root if the C-suite isn’t involved. While the average employee may not see the CEO every day, they will notice if the higher-ups are saying, “Do as I say, not as I do.” The C-suite, the board, and other leaders in your company must be fully committed to compliance and ethics to set the tone for the rest of your organization.
Make sure your company leaders set an example both within the company and within your industry. This will show all your employees that your company is serious about compliance – and it will attract new talent whose values align with yours. Simply modeling obedience and ethical behavior can go a long way toward shifting the company’s moral direction.
Invest in training
While “behaving ethically” may seem intuitive, your business can’t afford to assume that all your workers are on the same page. Therefore, it is essential to invest in compliance training that spells out the expectations for working within your new compliance culture.
Use this training to define corporate policies and expectations clearly. State in no uncertain terms any behaviors your business will not tolerate and explain the steps employees can take to report any misconduct when they see it. Make compliance a part of all employees’ initial training so that everyone who comes through your door understands that ethics is at your company’s core.
Test your training programs
Training your employees on ethics and compliance is a great way to foster a compliance culture. However, your training will only work if it’s effective – and the only way to know if your training is practical is to test it. Conduct regular policy reviews and employee assessments to determine the strength of your training program.
Do all your employees forget a specific part of their training? It’s probably time to adjust that section of the program. Does an employee have a suggestion for making the training more accessible? Considering to add their idea to the curriculum. If you treat your compliance training like an ever-evolving entity, you’ll be able to refine it and make it even more successful.
Empower your employees
Too often, business leaders say things like, “We have an open-door policy” without offering any follow-up or follow-through. This leaves employees unsure of what to do when they witness misconduct and non-compliance.
If you want your compliance culture to thrive, your employees need the resources and the encouragement to speak up when they see unethical behavior. Establish an anonymous compliance hotline or email account where employees can report what they’ve seen. Make sure everyone has ready access to the hotline number or address. Simply giving workers this information sends a clear message that your company wants to prioritize ethics in business.
Incentivize Ethics
Incentives are another way to get your employees to adopt your compliance culture. Tie ethical behavior to performance reviews, so your employees understand that ethical behavior pays.
This practice will do a few different things: it will urge all employees to prioritize compliance, weed out workers whose values don’t align with the companies and help establish its reputation as an ethics-focused business. In this way, you can ensure that your compliance culture firmly takes root and lasts for years to come.
Use technology to your advantage
Of course, managing all these training, performance reviews, non-compliance reports, and everything in between is no small feat. Spreadsheets can only do so much to help you build a compliance culture.
Therefore, it’s wise to invest in compliance technology solutions like analytics programs, case management software, hotline vendors, and other services to make the process easier. These investments can go a long way towards establishing your compliance culture. Analytics can help you spot weak areas in your training programs, and Hotlines give your employees a voice. Case management software can help you conduct thorough and ethical employee investigations and audits.
Building a compliance culture can be a smooth, streamlined process with the right technology in your hands. And once your company is firmly focused on ethics and compliance, you can enjoy a happier workplace, greater productivity, and the positive reputation that comes with a business built on ethics and integrity.
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