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Compliance: The Importance of Knowing the Rules!

legal

The importance of compliance in a well-run business is an often overlooked subject. Many small operations ignore the need for company-wide compliance training. But firms of any size can benefit greatly from implementing standards and training their staff how to properly follow compliance procedures. This article will overview the downstream advantages that a well-constructed compliance program gives your business and its operations.

Increased Efficiency

Compliance training can drastically increase the efficiency and profitability of your firm. Time and money are often wasted by employees who are unaware, or unable, to follow a normal protocol in given situations. Rules within the work place improve operations; if someone is discriminated against regularly at work, it is likely they will not be an efficient member of their team. Ensuring that individuals are in a safe, fully functioning work environment will have a net positive effect on your overall staff output. This is one of the primary reasons it is important to give your entire team of staff access to compliance training, not just management.

Reduced Legal Exposure

Reducing legal exposure reduces overall costs and increases your firm’s reputation. For example, in the mining industry firms invest substantial amounts of money in compliance in order to reduce risk of injury to their employees. This has multiple benefits; it cuts down on the overall number of injuries which has a net positive effect on both employees and management. This in turn reduces the overall amount of legal action that can be taken against the company. In addition, if litigation does occur, companies following industry and government standards are looked upon more favorably in a court of law. This is not exclusive to the mining industry; any company should make sure to abide by industry and government standards in order to minimize their legal exposure.

Staff Retention

Investment in compliance is also associated with higher staff retention rates. Compliance is a product of a well-run, accountable firm — employees notice this. If your company is having problems with retaining valuable employees, you may want to investigate whether or not systems in place are creating a stable, fair, and safe working environment. Higher staff retention rates result in increased operational efficiency. The cost of training new staff members is often a substantial cost for firms who regularly turnover staff — no matter the size of your company you can save money by investing in retaining staff through increased compliance measures.

Implementation

Modern technology makes compliance training easily accessible for a business of any size. Many compliance trainers work on-site and will come to your company’s headquarters to train management and other staff on how to properly implement and follow compliance procedures. In addition, many companies are now offering online interactive compliance training that allows your staff to receive training remotely. As government regulations increase, and industries become more competitive, it is imperative that your company is fully up-to-date with industry standards and protocol.

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