What Almost Every Organization Gets Wrong About Compliance Management

What Almost Every Organization Gets Wrong About Compliance Management

Business owners and organizations take risks every day. From managing large sums of money to worrying about their public reputation and hiring employees, companies have no shortage of things to stress about.

So, why does comprehensive compliance management (CM) take a backseat?

The truth is, a tangible CM standard can remove the huge margin for error that leaves entities (especially schools) open to regulatory violations and nightmare PR disasters.

What Is Compliance Management and Why Is It Important for Human Resources?

Most businesses should at least consider hiring a CM and background screening company to ensure the safety of their workers and consumers. For industries that face tight regulations, however, CM is an absolute must.

Even large organizations struggle to get it right – and it costs big time. In 2017, JP Morgan Chase had to pay $1.25 million for letting their background screenings lapse. In fact, four of their employees had criminal records that should have barred them from working for the company. (Robinson, 2017)

What’s the Big Deal?

Fields like education, home health care, pharmaceuticals, finance, and energy have to follow strict laws and can be highly regulated. This is especially true of education and home health where employees will interact with children or vulnerable populations on a regular basis.

CM ensures that everyone at a company, organization, or government agency are following a given set of rules. That may sound simple enough but, consider the following situation. A school rents their gymnasium to an after-school camp or group of volunteers for an event. The school must ensure that every volunteer completed a background screening that gives them clearance to work around children.

In this scenario, the administrator (the school) is still responsible for monitoring the volunteers’ compliance. Even if the school has delegated that task to the organization employing the volunteers, the school must still have copies of the background checks and clearance. (Keep Kids Safe, n.d.)

What Most Companies Get Wrong About Compliance Management for Human Resources

Most companies make one massive mistake when dealing with regulatory compliance: they don’t have a set CM standard and dedicated team to enforce it.

In fact, many companies and organizations leave this task up to someone in human resources. In several cases, the employee responsible for CM might have a dozen other tasks on her or his plate.

The average HR generalist likely does not have the extra hours or the specialty training in regulatory compliance and background screening to be the most effective in implementing a compliance management solution. Not only does this leave the company open to violations, but it also puts vulnerable workers and consumers at risk.

Remove Any Margin of Error

A dedicated CM specialist knows the ins and outs of regulatory red tape – they understand how every technicality applies to a specific industry and what the company must do to comply. Prevent anyone slipping through the cracks.

Don’t leave compliance management up to chance – it puts everyone at risk. ProVerify™ powered by Application Verification offers comprehensive CM workforce solutions, background screening, and much more. Lean on our expertise.

 

References

Keep Kids Safe, Pennsylvania Department of Human Services (DHS), n.d. School employees governed by the public school code: frequently asked questions, retrieved from

http://keepkidssafe.pa.gov/cs/groups/webcontent/documents/document/c_135248.pdf

Matt Robinson, Bloomberg, 2017 JPMorgan Unit Fined for Failing to Ensure It Didn't Hire Crooks. Retrieved from

https://www.bloomberg.com/news/articles/2017-11-21/jpmorgan-unit-fined-for-failing-to-ensure-it-didn-t-hire-crooks