Should You Cut Corporate Compliance Training Costs?


There are some budgets that traditionally get slashed whenever there is a need to cut costs in an organization. Marketing, travel and training are often the first to be hit. But there is research that points out how foolish and short-sighted cutting the budget of training…especially corporate compliance training…can be. Failure to understand basic employment law and organizational policies can lead to disaster, including low morale, substandard productivity, and even lawsuits.

The Ponemon Institute published a report in 2011 entitled “The True Cost of Compliance.” They contend that non-compliance is almost 3 times more expensive than the cost of compliance. And the cost is not tallied just in fines and penalties. In fact, the greatest financial loss is from lost productivity, revenue and disruption to day-to-day business. Who can afford this expense?

The key is to find compliance training that really works and that is customized to the organization’s talent strategy, organizational culture, corporate policies and procedures. The entire employee population should understand what it means to work in a respectful workplace. Management needs to know how to operate fairly and legally. HR needs to know how to apply regulations and how to guide others. And executives, at the very top, need to know how to set the example of fair and equitable treatment of all.

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