Compliance training: Types and programs for employees

Ensuring compliance with local and federal laws, as well as industry-specific regulations, can be a formidable challenge for organizations of all sizes. But navigating these complex requirements is essential not only to maintain adequate working conditions but also to mitigate legal and financial risks. 

For HR leaders, implementing effective compliance training programs is crucial to help employees understand and adhere to the laws and regulations that impact their roles. This comprehensive guide will empower your organization to streamline compliance training for employees, helping you make sure that your workforce is well-equipped to comply with necessary standards and reduce potential risks.

What is compliance training?

Compliance training is an essential component of employee training programs designed to help employees understand and adhere to the laws, regulations, and company policies relevant to their roles and industries. It educates employees on the legal standards they must follow, helping organizations comply with local, federal, and industry-specific laws. By participating in compliance training, employees gain the knowledge necessary to navigate complex regulatory environments, thereby reducing the risk of legal violations.

Compliance training can cover a wide range of topics, including anti-discrimination laws, data protection regulations, workplace safety policies, and industry-specific guidelines. Programs can also be tailored to address the unique challenges of different industries, ensuring that employees are well-informed about the specific laws that impact their daily responsibilities. Effective compliance training not only helps organizations comply with legal requirements but also fosters a culture of integrity and accountability among employees.

Moreover, compliance training programs are crucial for maintaining a safe and respectful workplace. They provide employees with the tools to recognize and report potential violations, helping organizations remain compliant with evolving laws and regulations. By investing in comprehensive compliance training, businesses can protect themselves from legal risks, enhance their reputation, and promote ethical behavior across all levels of the organization.

5 benefits of compliance training

Implementing compliance training for employees offers several key advantages that can enhance your organization’s operations and culture. Investing in comprehensive compliance training programs can help businesses build a workforce that is well-informed, engaged, and aligned with their company’s legal and ethical standards.

Here are five key benefits of corporate compliance training:

Reduces legal and financial risks

Compliance training reduces legal risk for the organization and its employees. By educating employees on relevant laws and regulations, compliance training helps ensure that they understand how to comply with legal requirements specific to their industry. Taking a proactive approach to compliance can help organizations reduce the likelihood of legal violations—and the associated penalties.

Moreover, well-trained employees are better equipped to identify and mitigate potential risks in the workplace, which can help shield their organizations from costly lawsuits and financial losses. Regular compliance training also keeps employees updated on any changes in laws, so they can continue to adhere to regulations and reduce your business’s risk of non-compliance.

Promotes a safe and respectful work environment

Compliance training programs help foster a safe and respectful workplace.

Compliance programs often cover a wide range of topics, including workplace safety, workplace violence prevention, harassment, ethics, and company policies and procedures. By educating employees on these and other critical topics, organizations can create a safe workplace where all employees feel respected and valued.

Compliance training for employees helps everyone understand the importance of following established policies and procedures, which helps prevent misconduct and promotes a culture of mutual respect. And by addressing issues like harassment and workplace violence, compliance training contributes to a more harmonious and productive work environment.

Boosts employee morale

Compliance training programs can also significantly boost employee morale. When employees receive thorough training on compliance-related topics, they’re likely to feel more confident and supported in their roles—and that can lead to increased job satisfaction and a stronger commitment to the organization.

Compliance training also demonstrates that the company values its employees’ well-being and is committed to maintaining a fair and ethical workplace. By fostering a positive work environment through compliance training, organizations can boost employee engagement and reduce turnover rates, ultimately contributing to a more motivated and dedicated workforce.

Protects company reputation

Penalties and fines aren't the only risks that come with non-compliance with the laws and regulations your organization is required to adhere to. Failure to meet compliance training requirements can also jeopardize your company's image.

Implementing compliance training programs can help protect your organization’s reputation. It also signals to clients, partners, and stakeholders that your company is committed to upholding high standards, thereby enhancing its reputation and trustworthiness in the marketplace. For example, employees trained in data privacy laws and regulations are less likely to mishandle sensitive customer data, reducing your company’s risk of a data breach or similar scandal. This, in turn, helps protect your reputation as a trustworthy and reliable organization.

Encourages ethical decision-making

As part of your corporate compliance training program, consider offering ethics training to help employees learn where compliance and ethics intersect, both legally and in their job roles. Ethics training can help employees recognize and avoid pitfalls like corruption, bribery, and conflicts of interest. Having a workplace code of conduct is another way to help employees adhere to their ethics training, your company’s policies and procedures, and any relevant laws.

9 compliance training examples and types

Implementing compliance training is essential for any organization aiming to uphold legal standards and foster a culture of integrity—it equips employees with the knowledge and skills necessary to navigate complex regulations, adhere to company policies, and maintain a compliant workplace.

Below are nine essential types of compliance training that organizations should consider to ensure comprehensive coverage of all relevant areas.

1. OSHA health and safety training

Occupational Safety and Health Act (OSHA) health and safety training helps organizations across various industries minimize workplace risks and maintain a safe environment for employees. OSHA training is required for workers who are exposed to hazards on the job in many industries, including construction, manufacturing, and healthcare. Requirements vary depending on the industry and state and local laws.

OSHA training educates employees on OSHA standards and procedures, helping them understand the necessary precautions to adhere to safety protocols and comply with health and safety laws. By implementing OSHA training programs, organizations can effectively reduce workplace hazards, prevent accidents, and mitigate risks associated with non-compliance.

2. Anti-harassment and anti-discrimination training

Anti-harassment and anti-discrimination training educates employees about the various forms of harassment and discrimination, helping them understand the laws that prohibit these behaviors. By addressing these critical topics, organizations can promote a culture of respect—and help prevent misconduct.

Anti-harassment and anti-discrimination training empowers employees to recognize inappropriate behavior, report incidents, and contribute to a safe workplace. Additionally, educating employees on these issues helps organizations comply with federal and state laws and can reduce their risk of legal repercussions.

3. Data privacy and protection training

In 2024, data breaches are more common than ever. Data privacy and protection training is vital for organizations that handle sensitive information to mitigate risks and comply with data protection laws.

Data privacy and protection training educates employees on best practices for safeguarding personal and company data, as well as requirements under relevant data privacy regulations. When employees understand the risks related to data mishandling, they can take proactive measures to protect information and comply with relevant laws. And effective  data privacy and protection training helps organizations prevent unauthorized access, reduce the likelihood of data breaches, and maintain the trust of clients and stakeholders. By adding data privacy training to your compliance program, you can teach your employees to handle data responsibly—and enhance overall data security at your organization.

4. Diversity, equity, and inclusion (DEI) training

Diversity, equity, and inclusion (DEI) training helps foster a diverse, inclusive, and equitable workplace where all employees feel valued and respected, regardless of their background. DEI training educates employees on the importance of diversity, the benefits of an inclusive workplace, and strategies to promote equity within the organization. By addressing these topics, organizations can enhance workplace culture, improve employee satisfaction, and attract a diverse talent pool. DEI training also helps organizations comply with anti-discrimination laws and promotes a supportive environment where all employees can thrive.

5. Cybersecurity Awareness Training

Cybersecurity awareness training can help protect against cyber threats by teaching employees to better understand and recognize their role in maintaining cybersecurity. This training educates employees on common cyber risks, such as phishing attacks, malware, and data breaches, and provides them with strategies to defend against these threats.

By raising awareness about cybersecurity best practices, organizations can reduce the risk of cyber incidents caused by human error and enhance their overall security posture. Cybersecurity awareness training also empowers employees to recognize potential threats, respond appropriately, and contribute to a secure workplace environment, which safeguards your company’s digital assets and sensitive information.

6. Ethics and code of conduct training

Compliance and ethics go hand in hand. Ethics and code of conduct training can promote ethical behavior and encourage employees to adhere to the organization’s values and standards.

Ethics training educates employees on the company’s code of conduct, ethical principles, and the importance of maintaining integrity in all business dealings. With a focus on compliance and ethics, it can help proactively prevent unethical behavior, such as corruption and bribery, and foster a culture of accountability.

Ethics training also provides employees with the tools to navigate ethical dilemmas, make informed decisions, and comply with company policies and procedures.

7. Workplace violence prevention training

Workplace violence prevention training educates employees on how to recognize the signs of potential workplace violence, understand the policies in place to prevent violent incidents, know the appropriate actions to take if violence occurs, and maintain a safe and secure work environment.

By addressing workplace violence, organizations can reduce the risk of physical harm to their employees, as well as comply with legal requirements related to workplace security. Workplace violence prevention training also emphasizes the importance of creating a respectful and non-threatening workplace culture, where employees feel safe and supported. Workplace violence prevention training is a proactive approach that helps mitigate risks and create a harmonious and productive work environment.

8. HIPAA training (for healthcare)

HIPAA training helps organizations in the healthcare industry comply with the Health Insurance Portability and Accountability Act (HIPAA). It also educates employees on HIPAA regulations, such as the importance of protecting patient information and maintaining confidentiality. 

HIPAA requirements are essential in the healthcare field. Employees in the industry need regular training on topics and procedures like preventing unauthorized access to sensitive data, reducing the risk of data breaches, handling patient information, and other necessary protocols to comply with industry-specific laws. By offering HIPAA training, healthcare organizations not only comply with legal requirements, but also avoid substantial penalties associated with non-compliance.

HIPAA training gives healthcare organizations more credibility—but more than that, it also safeguards patient privacy.

9. Intellectual property (IP) protection training

Intellectual property (IP) protection training educates employees on the importance of protecting intellectual property, including patents, trademarks, copyrights, and trade secrets. By understanding IP policies and procedures, employees can take proactive steps to prevent unauthorized use or disclosure of sensitive information. IP protection training also emphasizes the legal implications of IP violations, helping employees recognize the risks associated with non-compliance.

Offering IP protection training can help organizations maintain a competitive edge, prevent financial losses, and comply with relevant IP laws and regulations.

How to implement a compliance training program

A well-designed compliance training program should teach employees about relevant laws and regulation and empower them to perform their roles in accordance with industry mandates. Below are the essential steps to implement a comprehensive compliance training program within your organization.

Step 1. Identify compliance requirements specific to your industry and roles

The first step in developing a compliance training program is to identify the specific compliance requirements that apply to your industry and various roles within the organization.

Conduct a thorough analysis of the laws and regulations relevant to your sector, as well as the unique responsibilities of different employee groups. By pinpointing these requirements, you can tailor your training programs to address the specific mandates that your organization must adhere to.

Review federal, state, and local laws that govern your industry to ensure that your training content is comprehensive and up-to-date. Additionally, consider industry-specific regulations that may impose unique obligations on your employees. You may want to collaborate with legal experts and compliance officers to gather accurate information and identify any recent changes in regulations. 

Building a strong foundation of knowledge will help you create targeted employee training programs that effectively address the legal and regulatory landscape, so your compliance training program comprehensively teaches employees about the compliance mandates relevant to their roles.

Step 2. Develop role-specific training modules

Once you’ve identified the necessary compliance requirements, the next step is to develop role-specific training modules tailored to the unique responsibilities and risks associated with different positions within your organization. Customized training will make sure each employee receives relevant and practical information that directly applies to their daily tasks and decision-making processes.

Incorporate relevant topics based on your research, whether that’s ethical behavior, anti-bribery measures, privacy protection, or adherence to company policies and procedures, into your training modules. For example, employees in finance roles may require specialized training on anti-fraud regulations, while those in IT might need comprehensive data privacy and cybersecurity training. The goal should be to address the specific regulations and ethical standards that apply to each role, so your training program equips employees with the knowledge and skills necessary to comply with laws and uphold organizational policies effectively.

You might also consider integrating scenarios and case studies related to bribery, conflicts of interest, and other ethical dilemmas. Giving employees real-world scenarios can make the information easier to remember and help them practice applying their new knowledge.

Step 3. Automate through an LMS

Leveraging a Learning Management System (LMS) can streamline the administration and delivery of your compliance training program. An LMS automates various aspects of the training process, making it easier for organizations to manage, track, and update their compliance training programs more efficiently.

Implementing an LMS allows your organization to centralize training content, so all employees have access to the most current and relevant materials. Automated scheduling and reminders help ensure that employees complete their training modules on time, reducing the risk of non-compliance due to missed deadlines. An LMS can also provide reporting and analytics, so you can monitor employee progress, assess the effectiveness of training programs, and identify areas that may require additional focus.

Compliance training challenges

Developing and implementing a compliance training program isn’t always easy—it can present several challenges for managers and HR professionals. Some of the most pressing challenges include:

• Keeping employees engaged: Maintaining employee engagement throughout the compliance training program can be difficult. Boring or overly complex content may cause them to disengage, reducing the program’s effectiveness. To overcome this, organizations need to design interactive and relevant training materials that resonate with employees, making the learning process more engaging and impactful.
• Measuring the effectiveness of training programs: Evaluating the success of compliance training programs is crucial but often challenging. Organizations can establish metrics and assessment tools to measure how well employees understand and retain compliance content, because without proper evaluation, it’s difficult to determine whether the training is meeting its objectives or if adjustments are needed to make it more effective.
• Updating materials to reflect changing regulations: Laws and regulations are constantly evolving, and keeping training content current is a significant challenge. Organizations need to regularly update their compliance training programs to incorporate the latest legal requirements and industry standards. Failure to do so can result in outdated information, increasing the risk of non-compliance and potential penalties.

Employee compliance training best practices

By adopting best practices, organizations can enhance the effectiveness of their staff compliance training programs. Below are four key best practices to optimize compliance training for employees.

1. Automate compliance tracking and reminders

Automating compliance tracking helps companies meet course completion and certification deadlines. By leveraging automation tools, organizations can systematically monitor employee progress and make sure all employees complete their required training on time. This approach minimizes the risk of non-compliance by reducing the likelihood of missed deadlines and overlooked training modules.

Automated reminders help keep employees informed about upcoming training sessions and deadlines, while automation reduces the administrative burden on HR teams, allowing them to focus on more strategic initiatives.

2. Integrate compliance training with onboarding

Integrating compliance training with the onboarding process ensures that new employees are immediately aware of laws, regulations, and your organization’s policies from the outset. Mandated compliance training during onboarding helps establish a foundation of understanding regarding workplace safety, anti-discrimination policies, and other critical areas governed by law.

By embedding compliance training into the initial stages of employment, organizations can effectively communicate their commitment to maintaining a lawful and respectful workplace, which not only reinforces the importance of compliance from day one but also ensures that all employees are equipped with the necessary knowledge to comply with organizational policies and legal requirements, reducing potential risks associated with non-compliance.

3. Enable self-paced learning through a user-friendly platform

Providing a user-friendly platform—like an LMS—that allows employees to engage in self-paced learning is a best practice that accommodates diverse learning styles and schedules. A flexible learning environment empowers employees to complete compliance training at their own pace, so they can absorb the material without feeling rushed. This approach allows employees to revisit complex topics as needed, fostering a deeper comprehension of compliance requirements and longer-term knowledge retention.

A user-friendly platform can also increase employee engagement by making the training process more accessible and less intimidating.

4. Track compliance metrics and generate reports

Tracking compliance metrics and generating reports is essential for evaluating whether your compliance training program is effective. Look for a platform that enables you to collect and analyze data on employee participation, completion rates, and assessment scores, which will give you valuable insights into the strengths and weaknesses of your training initiatives. 

With these metrics, your organization can identify areas where additional training may be needed and make data-driven decisions to improve the overall training program. Reporting also fosters transparency and accountability.

Streamline and automate compliance training with an LMS

Set your team up for success with Rippling.

Rippling provides all compliance-required training alongside customized learning programs you can customize to fit your company’s needs. Choose from a catalog of pre-built courses that cover everything from anti-harassment training in all 50 states to country-specific compliance. Or, create custom courses with videos, images, and quizzes (or upload your own coursework). Rippling LMS is fully customizable so you can deliver personalized training that empowers your employees to grow in their careers—and meet compliance requirements wherever you (and they) are located.

Compliance training for employees FAQs

How often do employees need to undergo compliance training?

Employees should undergo compliance training regularly to stay updated with evolving laws and regulations. The frequency of training can vary depending on the industry, relevant laws, and your organization’s policies. 

How do you engage employees in compliance training?

Engaging employees in compliance training requires a strategic approach that makes the training relevant, interactive, and accessible. One effective method is to incorporate real-life scenarios and case studies that demonstrate how compliance principles apply to employees’ actual roles. You can also use a variety of training formats, such as videos, quizzes, and interactive modules, to different learning styles and keep employees interested. Providing incentives for completing training, such as recognition or rewards, can also boost engagement.

What training should be mandatory for employees?

Mandatory training for employees should encompass essential areas that directly impact workplace safety, ethical behavior, and legal compliance. Key topics include:

• Workplace safety: Training on safety protocols and emergency procedures to ensure a secure working environment
• Harassment and discrimination: Education on recognizing, preventing, and addressing harassment and discrimination to promote a respectful and inclusive workplace
• Data protection: Training on safeguarding sensitive information and complying with data privacy laws to protect both the organization and its clients
• Policies and procedures: Comprehensive overview of company policies and procedures to ensure that employees understand and adhere to organizational standards

This blog is based on information available to Rippling as of November 22, 2024.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.