Organizations that do not put enough of an emphasis on the employee education and training for compliance will likely experience these pitfalls. Here we will demonstrate the loaded implications for the three most crippling effects of absent employee compliance education.
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What is the Real Cost of Non-Compliance?
1. Big Implications for Minimal Employee Compliance Education
Courtesy of ConvergePoint
2. Fines & Legal Implications Wasted Resources Mismanaged Time
Organizations that do not put enough of an emphasis on the employee education and training for
compliance will likely experience these pitfalls. Here we will demonstrate the loaded implications for the
three most crippling effects of absent employee compliance education.
3. Not ensuring that your employees are compliant can land
an organization and its responsible parties hefty fines and
possible incarceration. Although most organizations are
equipped with staff designated for these roles, an
important task is to ensure that each member knows their
specific purpose. After they have come to understand the
sole purpose of their employment, they can begin to think
outside of the box for solutions to their daily tasks (Making
your employees their own decision maker empowers them,
and in turn benefits the business).
Ensuring every employee is compliant comes down to
ensuring that each person involved in management is
empowering their employees with the knowledge and tools
to succeed.
Non-Compliance Penalty Examples:
HIPAA – Fines up to $250k and 10 years of
imprisonment
OSHA – Fines up to $70k
ACA – $2k per employee for 101+ employee
businesses ($202,000 for a 101 employee business)
ECOA – Fair Housing first time violations up to $16k,
third time offenses up to $65k.
*Solution: Dedicate or create specific roles for the management of
compliance.
4. Although many companies hire compliance specific roles in
their organizations to enforce regulations, they do not
provide them with the tools for success that can increase
their productivity. Instead, thousands of dollars are wasted
due to factors such as:
Compliance team suffering due to lengthy searches
through shared drives and emails
Employees not knowing where to locate policies and
procedures, or determine which apply to their role
Managers tracking acknowledgments manually, through
email, or by word of mouth.
All of these can be time consuming and prohibit your
leaders from performing their essential duties.
Average Salaries:
Compliance/Policy Director : $87,500
HR Manager: $59,300
Risk ManagementAnalyst: $59,300
Total wasted talent costs for only 3 employees:
$200,000+ annually.
*Figures adopted from payscale.com
*Solution: Supply your compliance team with resources that will
improve the use of their time.
5. Time is money, and not complying with regulations for
policies or procedures will more than likely result in a lot
of wasted time.
Not complying with regulations probably means you are
doing things the more difficult way.They are not in place
solely to ensure that businesses are treating specific
issues justly. Although it does constitute one reason,
another is that most individuals do not consider that
businesses can actually function more smoothly through
following set policies and procedures.
Due to the impact of a task or method on another
function within an organization, certain policies and
procedures may be in place to cohesively align each
function.
After an organization has failed a compliance audit, or
non-compliance has resulted in litigations, the time and
costs associated in addressing these issues can be
disabling for a business.
Time Consuming Results:
Wasting time performing tasks in non-productive
ways
Employee rate cost for tasks that are not productive
or harmful to the business
Putting you at risk for legal repercussions due to
unregulated procedures within your organization
Litigation Costs, Meetings, and Paperwork
*Solution: Ensure policies are accessible & that employees
understand why certain regulations are in place.
6. Find a method that works for you – Every organization has a different need.
Small Businesses (<1k Employees)
Small businesses benefit from applying best practices in policies and procedures. Incorporate the
automation of one or two of your processes (Employee Certification, Etc.) to save your team more
time.
Mid-Sized Businesses (1k-5k Employees)
Mid-sized businesses will benefit from automating the entire lifecycle of policies and procedures
using your metadata for simplified searching.
Enterprise Sized Businesses (5k+ Employees)
Enterprise-sized businesses will benefit from a program that not only automates the entire policies
and procedures lifecycle with advanced search functionality, but also allows for custom real-time
dashboards and reporting through the use of metadata.
To consider all aspects of a Policies and Procedures program that satisfies your needs as a unique
company, visit the article: 5 Steps to Ensuring Employee Compliance
7. Read more ConvergePoint Best Practices, or contact us directly:
1|888-484-8048
convergepoint.com