What Is Compliance Training for Employees?

Compliance training is the aspect of employee training that helps workers abide by mandatory government laws or internal corporate policies. Compliance can include anything from following health and safety legislation in fast food to high-tech compliance in cybersecurity.

This article will detail what compliance training is, different types of training, common benefits and challenges, and some top tips for getting compliance training right in any work environment.

What is compliance training?

Compliance training is a process that ensures new and existing workers understand the rules, regulations, laws, and internal policies your organization, and its people, need to follow. It also ensures that workers know how and why they must follow these compliance requirements.

Compliance training first occurs during contractor or employee onboarding, sometimes before work can even begin, and often within the first or second week of work. Additionally, clients or employers may require existing contractors or workers to participate in ongoing compliance training courses throughout their partnership. This training could happen once or multiple times a year, depending on your organization’s needs and requirements.

Compliance training helps ensure everything at your company runs above board, reducing the likelihood of dangerous situations, non-compliance fines, and costly legal challenges. It also helps people new to the organization learn expectations, routines, and the company culture.

Why is employee compliance training important?

Following government laws, regulatory procedures, and internal rules is serious business. Non-compliance can lead to hefty fines, legal action, or even business closure. There are two main types of compliance: corporate compliance and regulatory compliance.

Corporate compliance refers to following internal rules and policies created by the company. Companies may write and implement these policies to promote an equitable workplace, achieve company goals, streamline workflow, or ensure the company operates ethically.

Regulatory compliance refers to the adherence to laws and regulations stipulated by the government or a governmental agency responsible for administering those laws and procedures. For example, there are digital accessibility compliance laws in the United States that stipulate websites need to be accessible to people with disabilities. Businesses that run websites must follow the law; if non-compliance is found, they can face fines or be sued.

Both corporate and regulatory compliance exist to ensure companies operate legally and ethically. Compliance training helps workers understand why corporate and regulatory compliance is essential and how to be compliant in their roles. Companies usually require contractors to follow these guidelines in the same way a full- or part-time employee would, so independent professionals need to take compliance training seriously.

Some common compliance topics include:

• Safety compliance, such as health and safety in the construction industry
• Risk management, as practiced in banking
• Conflict of interest or bribery laws
• Anti-discrimination laws
• Data privacy
• Financial regulations
• Code of conduct policies outlining acceptable behavior in the workplace

Next, we’ll dive into the different types of compliance training and some examples of what they might entail.

Types of compliance training

Compliance training is multifaceted, to address the many topics under its umbrella. Some training is essential for every worker, while other training is only necessary for those working in certain industries, departments, or leadership roles.

For example, in a construction company, ethics and code of conduct compliance training are important for all team members in order to define company policies and establish company culture. On the other hand, environmental regulation compliance training is reserved for engineering teams and environmental remediation specialists.

The three main compliance training types are:

• General
• Industry-specific
• Job specific

General compliance training

General compliance training covers compliance relevant to all workers, from the mailroom to the head of the company. General compliance training teaches knowledge of corporate policies and helps workers develop skills to succeed within a corporate culture. General training is often corporate compliance training that isn’t associated with regulatory compliance training.

General compliance training includes:

• Sexual harassment training
• Diversity training
• Workplace violence training
• Ethics training
• Unconscious bias training
• Anti-harassment training

Note that some general compliance training is also part of regulatory compliance training required by law. For example, many companies have internal policies regarding diversity and equity, and the United States has strict legislation regarding unlawful discrimination against employees. Thus, general compliance diversity training often includes information regarding company policies on equity and legal regulations concerning anti-discrimination laws.

General compliance training helps ensure everyone associated with the company, including independent talent, understands the policies, roles, and expectations of professional conduct at the company. This creates a more cohesive company mindset and improves corporate culture.

A strong corporate culture has been linked to improved productivity as well as better team member engagement, retention, and business success. Essentially, general compliance training helps to get everyone on the same page and working together toward a common goal.

Industry-specific training

Often, industry-specific compliance training is required by law. There are many kinds of industry-specific training, including:

• OSHA regulations
• Data protection, such as GDPR in the European Union
• HIPAA regulations
• Federal laws
• Information security
• Environmental protection

Depending on your industry, you may have to conduct industry-specific compliance training for specific workers or the entire company. For example, if your company has business dealings in Europe, workers assigned to European accounts will need GDPR training to comply with European Union privacy legislation. If your company works in healthcare, all workers must undergo industry-specific HIPAA information security compliance training to avoid civil and criminal penalties.

The Occupational Safety and Health Administration (OSHA) within the United States Department of Labor provides compliance training requirements and resources for all industries. If workers in your industry face hazardous situations at work, OSHA requires safety training by law. They provide authorized training centers, instructional materials, and even grants to nonprofits to help organizations comply with regulations.

Failure to comply with industry-specific compliance can result in serious penalties or legal action. In some cases, it can even risk the health and safety of your workers.

Job-specific training

Job-specific compliance training refers to contractor or employee training programs tailored to a relevant project or job. Job-specific compliance training can combine a mixture of corporate and regulatory compliance issues.

Job-specific compliance training can encompass the following:

• Company policies
• Company culture
• Codes of conduct
• Workplace safety
• Job-specific regulations

There can be some overlap between what is considered job-specific compliance training and the trainings mentioned previously. However, job-specific training is completed by workers in specific departments or positions within a company, not by the company as a whole.

For example, in a construction firm, job-specific OSHA compliance training would be required of all construction workers, site supervisors, compliance managers, and safety officers. Human resources, finance, or customer outreach workers might not need to complete such safety training.

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Benefits and challenges of compliance training

Thoughtful implementation of compliance training is key to reaping the benefits and minimizing challenges of these programs. The following are some benefits your team may enjoy, challenges you might face along the way, and several best practices to help you stay on the right path toward compliance.

Benefits

Compliance training requires the sacrifice of active work time but reaps considerable benefits for the company long term.

The most obvious benefits of compliance training are a reduced risk of heavy financial penalties and protection against crippling legal action. Compliance can also add to your company’s credentials and help you build a reputation for quality, honesty, safety, and reliability.

Successful compliance training helps your workers produce high-quality work. When workers clearly understand workplace policies, procedures, and expectations, they can confidently fulfill their roles. Confident workers are more productive, proactive, engaged, and able to solve problems.

Compliance training can also improve company culture. Diversity training, ethics training, sexual harassment training, and the like help workers feel safe and valued. Sexual harassment training reassures workers that company leaders are aware of the realities of gender discrimination and are actively trying to prevent it in the workplace. Diversity training helps workers from various racial and ethnic backgrounds feel seen, understood, and respected.

An inclusive company culture generates feelings of goodwill, improves worker engagement, and increases productivity. It can also reduce worker turnover and the loss of independent contractors. Inclusive compliance training also helps attract a diverse workforce, and studies have shown that diverse workplaces are more profitable and successful than homogeneous companies.

Challenges

There are a few challenges to consider when implementing a compliance training program.

One of the biggest challenges of compliance training is that workers aren’t always eager to participate, but there are ways to incentivize worker participation. Companies can offer product giveaways, cash bonuses, gift card rewards, or company-sponsored meals to motivate employee training. Companies could even let workers earn bonus paid time off for completed compliance training.

Another perceived challenge of compliance training is the time it takes away from regular professional work. However, compliance training is an integral job responsibility for every team member. To balance work time and training time, companies should create a consistent compliance training schedule that workers and contractors can predictably plan their usual work around.

Another challenge of compliance training is the budget and preparation time to create a successful program. Thankfully, there are online compliance training specialists who can provide you with customized materials for your training programs. These specialists can create and update materials for everything from general code of conduct training to anti-discrimination regulation compliance. Many specialists also offer e-learning programs, so workers can study when it fits their work schedule.

Best practices for compliance training

Developing an actionable compliance training plan may seem challenging, but we have some best practices to help guide you through the process.

First, make training relevant, short, and engaging for your workers. You could offer a variety of learning methods, such as team-based activities, e-learning, and video training. Keep in mind that some people learn differently than others, so what works best for some might not work well for others.

Making training mandatory for all workers also helps ensure everyone understands company policies, standards, and regulations. This is an appropriate strategy for general compliance training for company-specific regulations. However, depending on your industry and your workers’ responsibilities, you may need to tailor some forms of training to certain individuals or departments. This will help you streamline your compliance training and direct it where it’s most needed or required by law.

You’ll also want to use metrics to measure the effectiveness of your organization’s compliance training and make adjustments if your workers or leaders aren’t meeting goals. Encouraging feedback from all workers after compliance training can help you understand how best to provide ongoing support.

For honest feedback, offer workers a way to participate in compliance training review surveys anonymously. Remember not to take things personally but to move forward with confidence and a great understanding of your team. Practicing good leadership and being an example of what your company stands for is key to inspiring and guiding your team toward the common goal of compliance.

Following these best practices and seeking outside support when needed can help anchor compliance training within your organization and keep your company moving forward ethically and responsibly.

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Provide effective compliance training with help from Upwork

Compliance training helps workers understand and know how to follow corporate rules and government laws and regulations. If communicated well and supported by organization leaders, this training can lead to a safer and more inclusive workplace.

When done right and as frequently as required, compliance training can help workers and companies succeed. Effective compliance training can foster a positive company culture, increase worker engagement, and improve performance.

Your company may not have the time or workforce needed to create compliance training content or to keep it updated regularly. Upwork provides easy access to a host of compliance training specialists to help you start or upgrade your compliance training program.

Hiring the best talent with the skills you need is easy with Upwork. Search our list of top compliance training specialists to find one who meets your needs.