Why HR Executives are Beginning to go on the Offensive to Confront Compliance Risks

Traditionally, “risk management” in the Human Resources sector has been largely defensive in nature. Businesses have historically allocated their resources toward defending litigation and preparing professionals for battle if an employee were to sue the company. With EEOC statistics showing that human resources related-charges are still at historically high levels, and federal litigation statistics confirming that employees follow through on their threats to sue, the old methods of gearing up for battle are no longer working.

In addition to hefty litigation costs associated with the defense of lawsuits (and resulting verdicts and settlements), there is a “downward stream” of impact within the business when non-compliant human resources practices are allowed to persist within a workplace. In addition to reputation damage within the community, when companies have been hit with high-profile human resources-related lawsuits there can be a “trickle-down” effect of difficulty recruiting and retaining high-end talent; customer and client engagement backlash; and government agency scrutiny that can put a damper on production, no matter what type of business the company engages in.

Risk Management is Becoming Proactive

“Going on the offensive” in the year 2014 means training management and employees. You may be thinking “we already train managers on how to deal with ‘problem’ employees.” Your training may include what to do in the event the company has been sued. However, these old ways of thinking are not enough. Indeed, the new method of HR risk management is training managers in compliance with state and federal employment laws and other business ethics necessities in order to ensure that they are educated as to the laws and how to apply them in the workplace.

Because lawsuits and the threat thereof impact so many businesses in today’s society, those companies that choose to allocate their resources towards wide-scale human resources training are spending less money up front to save it down the road. Additionally, company cultures change from the top down as management learns the proper methods of avoiding discrimination, harassment, bullying, retaliation, wrongful termination, and other illegal workplace actions that can get the company in hot water. When managers know what to look for, they take a more cautious approach with employees, which leads to increased morale and greater productivity across the board.

Training Does Not Have to Take a Great Amount of Time

With the advent of online training courses covering a broad scope of potential workplace issues, managers can learn about topics one at a time at designated times during the day, week, month, or year. Indeed, there is no longer the need to spend significant resources to bring an attorney in house to conduct trainings that take large groups of employees away from their workstations. Instead, managers and employees can now attend courses online at their convenience. This creates a cost-effective means of tackling human resources risks head on, which is why modern companies are taking a preventative approach to human resources risks through compliance training.

Syntrio, Inc. specializes in providing Ethics and HR compliance training. Contact us today at 888-289-6670 to discuss your compliance efforts and any issues that may be arising within your company.


Posted in Compliance Training, Managing Within the Law and tagged , , , , , , , .