Understanding Compliance Training

Compliance training is essential for many organisations. It helps employees understand the laws, regulations, and policies relevant to their work.

This helps to avoid legal issues, create a safe and respectful work environment, and maintain the company’s good name.

A PwC survey found that 87% of UK CEOs say a strong corporate purpose and values are important for building trust with stakeholders. Compliance training plays a big role in this.

In the UK, compliance training is a big deal. Did you know that in 2021, the Financial Conduct Authority (FCA) fined companies over £500 million for breaking rules? This shows how important it is for businesses to train their staff properly.

You can check the list of fines by FCA here in 2021. This is to show you how important compliance is in the business world.

In this article, we will explore compliance training in detail, covering its meaning, types, examples, benefits, and steps for implementation, both online and offline.

We will also discuss whether it is a legal requirement, the best qualifications, who needs it, and its importance as a business practice.

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What is the Meaning of Compliance Training?

What is Compliance Training?

Compliance training is the process of teaching employees about the laws, regulations, and company policies that apply to their jobs and the industry they work in.

Also, Compliance training teaches employees about:

  1. Laws and regulations that affect their job
  2. Company policies and procedures
  3. Ethical behaviour at work
  4. How to recognise and report problems

For example, a bank teller might learn about money laundering rules, while a factory worker might learn about health and safety regulations.

Training in areas of compliance to laws and regulations ensures that everyone in the company follows the rules and avoids activities that could lead to legal trouble.

For example, this can include training on topics such as workplace safety, data protection, and anti-discrimination laws.

Types of Compliance Training

There are many different types of compliance training, depending on the industry and specific needs of the company. Some common types include:

  • Workplace Safety Training: Focuses on teaching employees how to work safely and avoid accidents.
  • Data Protection Training: Educates employees about how to handle personal and sensitive data properly.
  • Anti-Harassment Training: Helps employees understand what constitutes harassment and how to prevent it.
  • Ethics Training: Covers the company’s code of conduct and ethical standards.
  • Environmental Compliance Training: Teaches employees about laws and practices to protect the environment.
Compliance training: Why it matters [click to expand]

What does compliance training do?

  1. It helps workers understand the laws and rules for their job.
  2. It shows people how to stay safe at work.
  3. It teaches everyone how to do things the right way.

Why is this good?

For workers:

  • They feel more confident in their job.
  • They know how to avoid making big mistakes.
  • They understand how to keep themselves and others safe.

For companies:

  • They’re less likely to get into trouble with the law.
  • They build a good reputation as a trustworthy business.
  • They create a happier place to work.

Did you know?

A study by Skillcast found that 67% of UK employees feel more engaged with their work after compliance training. That’s a lot of happier workers!

Compliance Training Examples

To better understand compliance training, let’s look at some specific examples:

  • Workplace Safety Training: In a construction company, employees might receive training on how to safely operate machinery, use protective gear, and follow safety protocols to prevent accidents. Health and safety training is legally required for all workers under the Health and Safety at Work Act 1974.
  • Data Protection Training: Employees at a financial institution might learn how to protect customers’ personal information, follow data privacy laws, and respond to data breaches.
  • Anti-Harassment Training: A retail company might provide training to help employees recognise and report harassment, create a respectful work environment, and understand the consequences of such behaviour.
  • Ethics Training: Employees at a pharmaceutical company might be trained on the ethical guidelines for conducting research, marketing products, and interacting with healthcare professionals.
  • Anti-Money Laundering: Financial services firms must provide anti-money laundering training under the Money Laundering Regulations 2017.

Benefits of Compliance Training

Compliance training offers many benefits for both employees and employers. Some key benefits include:

  • Legal Protection: Ensures that the company and its employees follow the law, reducing the risk of legal issues and fines.
  • Improved Safety: Helps create a safer workplace by educating employees about safety protocols and best practices.
  • Enhanced Reputation: Demonstrates to customers, partners, and regulators that the company is committed to ethical and legal standards.
  • Increased Employee Confidence: Employees feel more confident and secure when they know they are following the rules and working in a safe environment.
  • Reduced Turnover: A positive, compliant workplace culture can lead to higher employee satisfaction and lower turnover rates.

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Steps for Running a Compliance Training Online

Online compliance training can be very effective, especially for companies with remote employees or multiple locations.

Here are the steps to run a successful online compliance training programme:

  1. Identify Training Needs: Determine what specific compliance topics are relevant to your company and industry.
  2. Choose a Platform: Select an online training platform that offers the features you need, such as interactive modules, quizzes, and tracking.
  3. Develop Content: Create engaging and informative training materials, including videos, slides, and interactive elements.
  4. Schedule Training: Set a timeline for employees to complete the training, making sure to allow enough time for thorough understanding.
  5. Monitor Progress: Use the platform’s tracking tools to monitor employee progress and ensure completion.
  6. Assess Understanding: Include quizzes or assessments to test employees’ understanding of the material.
  7. Provide Support: Offer support and resources for employees who have questions or need additional help.
  8. Evaluate and Update: Regularly review and update the training materials to keep them current with changing laws and regulations.

Steps for Running a Compliance Training Offline

Running compliance training in person can also be effective, especially for hands-on topics like workplace safety.

Here are the steps for conducting offline compliance training:

  1. Identify Training Needs: Determine the specific compliance topics relevant to your company and industry.
  2. Plan the Training: Decide on the format, location, and schedule for the training sessions.
  3. Develop Materials: Create engaging and informative training materials, such as handouts, slides, and demonstrations.
  4. Select Trainers: Choose qualified trainers who are knowledgeable about the compliance topics and skilled in delivering training.
  5. Schedule Sessions: Arrange training sessions at times that are convenient for employees and ensure all necessary resources are available.
  6. Engage Employees: Use interactive methods, such as group discussions, role-playing, and hands-on activities, to keep employees engaged.
  7. Assess Understanding: Include quizzes or assessments to test employees’ understanding of the material.
  8. Provide Support: Offer support and resources for employees who have questions or need additional help.
  9. Evaluate and Update: Regularly review and update the training materials to keep them current with changing laws and regulations.

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In many cases, compliance training is not just a good practice but a legal requirement.

Various laws and regulations mandate that employers provide specific training to their employees.

For example:

  • Health and Safety Executive (HSE): In the United Kingdom, the HSE requires employers to provide training on workplace safety and health. Check our health and safety courses here.
  • General Data Protection Regulation (GDPR): Companies in the UK must train employees on data protection and privacy practices to comply with GDPR. Check GDPR Online Training.
  • Equality Act 2010: Employers are required to provide anti-discrimination and harassment training to prevent workplace discrimination.

Failing to provide the required compliance training can result in legal penalties, fines, and damage to the company’s reputation.

What is the Best Compliance Qualification?

There are several recognised qualifications for compliance professionals, depending on the industry and specific needs.

There’s no one-size-fits-all answer, as it depends on your industry and role. However, some well-respected qualifications in the UK include:

  1. IOSH Managing Safely: Great for managers and supervisors in any sector.
  2. NEBOSH National General Certificate: Ideal for those responsible for health and safety.
  3. ICA Certificate in Compliance: Suitable for those in financial services or other regulated industries.
  4. CIPD Level 3 Foundation Certificate in People Practice: Good for HR professionals dealing with employment law.
  5. BCS Foundation Certificate in Data Protection: Perfect for those handling personal data.

Remember, the best qualification is one that fits your specific job and industry needs.

Who is Required to Have Compliance Training?

Compliance training is required for various individuals and groups within an organisation, including:

  • All Employees: General compliance training on topics such as workplace safety, data protection, and anti-harassment is often required for all employees.
  • Managers and Supervisors: These individuals may need additional training on handling compliance issues, enforcing policies, and managing employees.
  • Specific Roles: Certain roles, such as those handling sensitive data or working in regulated industries, may require specialised compliance training.
  • New Hires: New employees should receive compliance training as part of their onboarding process to ensure they understand the company’s policies and regulations.

Compliance Training as a Business Practice

Training on compliance is an essential business practice for many reasons:

  • Risk Management: By educating employees on compliance issues, companies can reduce the risk of legal problems, fines, and reputational damage.
  • Workplace Culture: A strong compliance training promotes a culture of integrity, respect, and safety, leading to higher employee morale and satisfaction.
  • Operational Efficiency: Well-trained employees are more likely to follow procedures correctly, reducing errors and improving overall efficiency.
  • Customer Trust: Customers are more likely to trust a company that demonstrates a commitment to ethical and legal standards through compliance training.
  • Competitive Advantage: Companies with robust compliance training programmes can gain a competitive edge by showcasing their commitment to high standards and regulatory compliance.

Compliance training is important for any organisation. It helps employees understand and follow laws, reducing the risk of legal issues and creating a safe, ethical workplace.

Whether done online or in person, compliance training has many benefits, like legal protection and a better workplace culture. By focusing on compliance training, companies can build a stronger business that can handle today’s challenges.

In short, compliance training is not about following rules. It’s about creating a better workplace. It shows a company cares about doing the right thing, keeping people safe, and protecting information.

It helps employees know their responsibilities and feel confident in their jobs. For businesses, it means fewer problems and a better reputation.

By making compliance training a priority, companies can be ready for the future, no matter what changes come.

Additional Benefits

Beyond the immediate benefits, there are also long-term advantages to having good compliance training:

  • Continuous Improvement: Regular updates and reviews keep the company in line with the latest laws and best practices.
  • Employee Empowerment: Informed employees can make better decisions that match the company’s values and legal needs.
  • Better Reporting: A strong understanding of compliance helps improve the accuracy and speed of reporting any problems.
  • Enhanced Innovation: A safe and respectful environment helps companies foster innovation and creativity among employees.

What qualifications do I need to be a compliance officer in the UK?

Becoming a compliance officer in the UK doesn’t have a single set path. It’s a bit like choosing what to wear – there are many options, and you need to pick what fits best for the job you want.

A simple guide to help you understand what you might need:

  1. Education:
    • A university degree is often helpful, but not always required.
    • Useful subjects include law, business, finance, or management.
    • Some people start with A-levels or equivalent and work their way up.
  2. Professional qualifications:
    • These are special certificates that show you know about compliance.
    • Popular ones in the UK include:
      • ICA Diploma in Governance, Risk and Compliance
      • CISI Diploma in Investment Compliance
      • IRM International Certificate in Enterprise Risk Management
  3. Industry-specific qualifications:
    • Different industries might want different qualifications.
    • For example:
      • Financial services: CFA UK Investment Management Certificate
      • Healthcare: NHS Information Governance Training
      • Data protection: BCS Certificate in Data Protection
  4. Experience:
    • Many employers look for people who’ve worked in compliance before.
    • You might start in a junior role and work your way up.
    • Experience in law, auditing, or risk management can also be helpful.
  5. Skills:
    • While not a formal qualification, these skills are important:
      • Good at understanding and explaining rules
      • Attention to detail
      • Strong communication skills
      • Ability to keep up with changing regulations
  6. Memberships:
    • Joining professional bodies can help you learn and network:
      • Chartered Institute of Internal Auditors (CIIA)
      • International Compliance Association (ICA)
      • Institute of Risk Management (IRM)

Additionnal things to note

Remember, the exact qualifications you need can depend on:

  • The industry you want to work in (like banking, healthcare, or manufacturing)
  • The size of the company
  • The specific compliance role (some are more specialised than others)

It’s a good idea to look at job adverts for compliance officers to see what employers are asking for. This can help you plan what qualifications or experience to get.

Also, keep in mind that rules and regulations change often. So, even after you become a compliance officer, you’ll need to keep learning and updating your knowledge.

The good news is, compliance is an growing field in the UK.

A report by Robert Walters in 2022 found that demand for compliance professionals increased by 20% compared to the previous year.

This means there are opportunities for people willing to learn and grow in this area.

Read Next Post: How to Measuring Compliance Training Using KPI

Final Thoughts

Compliance training is ongoing and changes with new rules. Everyone in the company needs to be involved, from top managers to all employees. Good compliance training helps companies follow rules, protect workers, and succeed.

Spending on compliance training is good for the company’s future. It builds trust, safety, and honesty, which are important for success. Setting up training might seem hard, but it’s worth it. It helps create a good work environment that supports growth and success.

In the end, compliance training is more than just following rules. It’s about making a workplace where everyone feels safe and respected. It’s about building a culture of honesty and responsibility.

Most importantly, it’s about making sure everyone knows how to keep the company successful and following the rules.

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