Compliance management requires the development of training programs that regulators require to increase the knowledge of the employees. The regulatory requirements are translated into training programs to educate the employees and stakeholders about the regulations and their interpretation. Training programs enable the employees to think differently than they usually do not.
Training Programs Definition and Function
The compliance function is usually responsible for ensuring that need-based and targeted corporate compliance training programs are designed to spread the message of the significance of regulatory requirements and manage the compliance risks.
The training programs help create the buy-in of the employees and enable the recipients to understand the ‘need’ and the requirements of corporate compliance. Training enables the understanding of the compliance risks and the assessment and management process of the identified compliance risks.
Training programs enhance the knowledge of employees regarding the latest applicable regulatory requirements and compliance status. The compliance function may arrange in-house training or outsource them to the subject matter experts.
The corporate compliance training programs must be designed for different hierarchal levels and should cover the following, at the minimum:
- The stock of regulations, policies, standards, and market best practices under which the organization operates
- Practical description of how the regulations affect the organization’s business and operations
- The compliance risks that are associated, potential non-compliances, and their impacts on the organization
- A review of the organization’s approach to managing the compliance risks
- Roles and responsibilities concerning corporate compliance risks
- The importance of creating a robust compliance culture and practices
- The significance of reporting incidents of non-compliance to the management and the compliance committee
- Updates to the approach for managing corporate compliance risks
What are the Benefits of Effective Training Programs?
Training programs that educate employees on company values, policies, and best practices can help businesses succeed. Here are some of the advantages of effective training programs:
- They reduce the requirement for supervision. Employees who have gone through a training program on company expectations and proper techniques may be able to perform their job responsibilities on their own. When employees can self-motivate and self-direct on a daily basis, their managers can devote more time to high-level tasks such as developing project steps or creating schedules.
- They improve morale. When employees believe their employer cares about them, they are more likely to be satisfied with their career path and perform their job duties more efficiently. Employees with high morale can also innovate new ideas more quickly, improving the quality of their project results.
- They boost productivity. Regular training can help ensure that every employee is up to date on a company’s best practices, which can boost overall productivity. Incorporating training sessions can help employees feel more secure in their roles and more knowledgeable about a company’s mission statement, assisting it in meeting long-term objectives.
- They enable everyone to work in unison. When all employees in a training program learn the same techniques, they can better collaborate on future projects and resolve any unexpected situations. They may also complete assignment steps more quickly while still delivering high-quality results.
A well-planned training program has the advantage of allowing you to strengthen tangible skills that each employee needs to improve. Aside from improving job performance, effective training programs boost employees’ confidence because they now understand their job requirements and the industry better.
Training programs teach employees about the company’s procedures and expectations, such as administrative tasks, discriminatory and safety measures. Regular training fosters a caring, supportive environment in which employees feel valued. Employees who feel appreciated and challenged have higher job satisfaction and career advancement.