Organizations take risk management seriously, but budgets are tight. The competing demands for limited resources mean some things make into the budget and others don’t – maybe next year. Compliance solutions often fall into the “maybe next year” bucket because things have been working OK so far, right?
Not to scare you – ok, maybe a little – but consider these interesting nuggets:
- 400% – Amount that employment related lawsuits have increased in the last 14 years.
- $500,000 – The average compensatory award for federal employment cases is quickly approaching this amount.
- $9M – The average cost of non-compliance for an organization – per year
It’s clear that the less an organization invests in risk management programs and solutions today, the more it will cost tomorrow. Compliance touches industries and organizations of all sizes. Regardless of the industry, almost every organization must comply with at least one requirement.
Human resources departments spearhead most compliance initiatives, but are limited by dated, disconnected systems and spreadsheet based record tracking. Here are three quick (but important!) reasons why having a compliance solution in place should be a priority for every organization and HR department.
- Compliance Programs Mitigate Risk.
A recent survey found that more than two thirds of organizations (68%) admit they were caught off guard by an operational surprise. Comprehensive compliance programs built on a foundation of learning can avoid the disruption and significant cost of non-compliance. Through learning – delivered by a learning management system (LMS) that fully supports compliance needs — HR teams can proactively train employees, increase compliance awareness and behavior, minimize risk and fines, and accurately track and report on compliance activities.
- Compliance Solutions Help Expand Business.
Organizations are taking advantage of today’s expanding global economy to tap into the new markets and revenue channels beyond their borders. Unfortunately, nearly half (46%) of organizations feel that corporate compliance issues are hindering the success of cross border growth. Even if your organization is not looking to expand outside of your domestic market, compliance issues still vary state to state. Managing compliance in one market is complex, but effective risk management across two, ten or even 100 markets requires the expertise and workforce management solution to support it.
- Compliance Solutions Save Money.
Legal issues and challenges are expensive; and with the increase in workforce and product related lawsuits continuing to rise, it’s not going to get any cheaper. Implementing a comprehensive compliance solution costs a fraction of what it costs to deal with the repercussions of non-compliance. Audit failure, product recalls, and regulatory investigations mean significant legal fees and fines, business disruption, loss of productivity, declining sales and damage to your organization’s reputation. Your customers may lose trust in your brand and question your corporate values, resulting in immediate and sometimes lasting revenue loss.
Corporate compliance touches every aspect of your organization and should be a priority in every HR department this year. With a strong understanding of your corporate culture, industry and workplace laws, and an investment in compliance programs and solutions, you can make a significant and positive impact on your business.