Workplace Compliance How To Build A Compliance Culture In Your Organization

1. Workplace Compliance: How To Build A Compliance Culture In Your Organization Workplace compliance management involves a combination of people, processes, and technology to help you easily instill a culture of compliance across the organization. In 2018, the Facebook-Cambridge Analytica data privacy case caused a furore among internet users. It highlighted the importance of workplace compliance in protecting user privacy and maintaining trust in the digital age. Fast-forwarding to 2023, workplace compliance has evolved from a quasi-legal function to a proactive initiative involving the collection, use, and application of big data. Today, workplace compliance laws are designed to protect the safety and welfare of all employees; and, by extrapolation, the end users that these employees interact with. Failure to adhere to standardized laws can not only bring on hefty fines but also affect a company’s reputation and standing in the business world. The present-day approach to workplace regulatory compliance combines the traditional aspects with new elements like behavioral science and social responsibility. Despite this, maintaining corporate compliance programs is not as tedious as it might sound. The right combination of people, processes, and technology can help you easily instill a culture of compliance in your workplace. Let’s look at why workplace compliance is a necessary part of modern work culture and what organizations can do to ensure compliant workspaces. Table of Contents What is workplace compliance? The cost of non-compliance The importance of compliance management from the lens of workplace security Benefits of a compliant and secure workplace Getting started with creating a culture of workplace compliance Compliance standards for workplaces

2. The role of an integrated workplace management platform in protecting workplace compliance What is workplace compliance? Workplace compliance refers to an organization's adherence to various laws, regulations, and standards that govern the conduct of businesses and protect the rights and well-being of employees. Compliance ensures employers maintain fair and ethical practices, provide a safe working environment, protect sensitive data, and treat their employees fairly. The broad definition involves implementing policies, procedures, and practices that align with legal requirements and industry best practices and educating employees about their rights and responsibilities within the workplace. Unlike other legal business requirements, workplace compliance is not defined by a single legal document or statute. Instead, it encompasses a collection of laws, regulations, and standards that vary depending on the jurisdiction and industry. Broadly, the legal framework for workplace compliance includes: Labor laws: include aspects such as minimum wage, working hours, overtime, employee classification (full-time, part-time, contract), and employee rights at the workplace. Occupational health and safety regulations: guidelines for a safe and healthy work environment, including protocols for hazard identification, training, safety equipment, and reporting of workplace accidents or incidents. Anti-discrimination and harassment laws: for protection against discrimination based on protected characteristics such as race, gender, age, disability, religion, and sexual orientation. These laws also address workplace harassment, including sexual harassment, and the appropriate measures to prevent and address such behavior. Data protection and privacy laws: for governing the collection, storage, use, and protection of personal and sensitive data, and the insurance that employers handle employee and customer information securely and responsibly.

3. Financial regulations: to explain how employers should handle financial transactions, reporting, and compliance with accounting standards set by local financial regulatory bodies. Industry-specific regulations: specific compliance requirements, such as healthcare, finance (local tax laws), or environmental (Environmental Protection Agency regulations) The cost of non-compliance Business Costs The average cost of non-compliance has increased by more than 45% between 2012-2022. On average, organizations suffer a revenue loss of $4 million due to a single instance of non-compliance, reflecting the true cost of non-compliance. A single non-compliance event leads to organizations experiencing an average revenue loss of $5.87 million. (Source) Customer Costs 69% of consumers believe that companies are vulnerable to cyberattacks. 85% of individuals choose not to interact with a business due to security concerns. 55%) of consumers have abandoned online purchases due to privacy concerns. (Source) Cost of Data Privacy Violation PCI-DSS non-compliance penalties can range from $5 to $100,000 per month, depending on the company size and the scale of the violation. GDPR violations can accrue penalties upto $11.03 million or 2% of business revenue, whichever is greater. (Source)

4. The importance of compliance management from the lens of workplace security At its core, providing secure environments for employees is the responsibility of the employer. To do so, employers must: Aim to safeguard employees' physical and psychological well-being by reducing the risk of workplace incidents, accidents, violence, or unauthorized access. Meet legal obligations, such as health and safety standards, data protection regulations, and industry-specific requirements. Create protocols to protect sensitive and confidential information within the workplace, control data access, and prevent unauthorized access, data breaches, or leaks. Prevent workplace misconduct, such as harassment, discrimination, or unethical behavior (corruption, payroll mismanagement), and foster a culture of respect and accountability. Provide training programs and awareness campaigns to educate employees about potential security risks and the best mitigation practices. Psychologists studying workplace dynamics have postulated that when presented with multiple goals and priorities (for example, safety versus efficiency), workers may sometimes use their best judgment to achieve efficiency among competing priorities without necessarily adhering to safe work practices. It stands to reason that creating policies is not enough to guarantee a safe work environment. A secure work environment can only be achieved with well-enforced rules and regulations and by applying both positive and negative reinforcement to reward compliance and prevent defiance. Workplace security and compliance management are, therefore, closely intertwined, with each concept playing a crucial role in reinforcing the other. While security can focus on the measures and protocols a company

5. implements to safeguard its assets, compliance management involves managing the workforce and helping them adhere to the standards established by best practices or legal obligations. Benefits of a compliant and secure workplace There are many tangible benefits to creating a secure and compliant workplace that go beyond mitigating business risks. Workplace compliance significantly contributes to an organization's overall success and profitability. Let's understand in detail. A compliant workplace is better for employee retention. Employee retention begins with a firm dedication to prioritizing safety rather than solely focusing on productivity or profitability. Integrating discussions about physical and psychological health and safety into everyday workplace communication is essential, with management taking the lead by example. When employees feel that their rights are protected and that the organization prioritizes compliance with regulations, they are likelier to show their loyalty and satisfaction by remaining with the company. Compliance measures, such as fair compensation, non-discriminatory practices, and a safe work environment contribute to employee retention and reduce turnover rates. Compliance can be a boost for your company culture. Let’s start by looking at some statistics that reinforce the importance of company culture. Company culture is an important factor for about 75% of the millennial workforce when choosing a workplace.

6. About 15% of job seekers have said no to a company based on their evaluation of its culture. Good work culture is a prime driver for top talent. However, what needs to be discussed is how compliance measures can bolster a company's culture. No one can forget how the pioneer of the taxi service industry, Uber, lost face after the sexual harassment and discrimination allegations in 2017 and the repercussions it had in Silicon Valley. Workplace compliance can prevent such incidents by promoting ethical practices, respect, and integrity. A compliant workplace sets clear expectations and boundaries for employee behavior and encourages employee engagement, collaboration, and a sense of belonging, enhancing overall company culture. Compliant workplaces are productive workplaces. When you provide clear guidelines and processes for employees, they are bound to be more efficient and responsible. Compliance measures can eliminate inefficiencies, reduce conflicts, and minimize distractions arising from non-compliant practices or unsafe working conditions. When employees are confident that the organization prioritizes compliance, they can focus on their tasks, leading to improved productivity and quality of work. Better compliance ultimately improves the bottom line.

7. Workplace compliance has a direct impact on the organization's bottom line. Organizations save significant costs by avoiding legal issues, penalties, and reputational damage from non-compliance. Compliance measures also contribute to risk management and business continuity planning, reducing the potential impact of incidents or disruptions. Moreover, a positive company culture resulting from compliance efforts attracts and retains top talent, furthers innovation, and enhances customer satisfaction–all of which can positively impact the organization's financial performance. Getting started with creating a culture of workplace compliance A company's culture is the sum of its 'lived' values. To set the right tone, the leadership must take centre stage and build an ethics-driven work culture. However, formulating policies and a culture handbook is half the answer. The other, and perhaps more important, is ensuring that directives set by the leaders are followed at every level. That said, to ensure enterprise-wide compliance management, here are the best practices organizations could follow. For ease of understanding, we have broken this into three parts: People, Processes, and Technology. 1. Compliance best practices -The People We know how every organization needs to follow up with their employees to ensure they are fully compliant. In most enterprises, this job is assigned to the Compliance Management Team, comprising representatives from several departments. Compliance Manager

8. The compliance manager is usually responsible for monitoring and assessing compliance risks, developing training programs, conducting audits, and implementing corrective actions. They act as a central point of contact for compliance-related issues and collaborate with other departments to promote a culture of compliance. HR (Human Resources) HR executives play a significant role in compliance management as they ensure hiring processes, employee contracts, and policies adhere to labor laws and anti-discrimination regulations. HR professionals provide training on compliance-related topics, handle employee complaints or grievances, and support the implementation of ethical and inclusive practices within the organization. Legal Counsel Large organizations need expert help on regulatory compliance to interpret and navigate complex laws and regulations in multiple geographies. A legal counsel is usually appointed to advise on compliance strategies, review contracts and agreements, assess legal compliance risks, and assist in investigations or legal proceedings should they arise. It is also the counsel's job to ensure that the organization remains updated on legal requirements. Operations/Department Managers Operations or department managers in enterprises usually take on the responsibility of implementing compliance measures within their respective teams. They work closely with the compliance manager and HR teams to ensure employees follow established policies and procedures.

9. Managers are also expected to monitor compliance performance, address non-compliance issues, and communicate expectations to their teams. They play a key role in promoting a culture of compliance within their departments. Data Protection Officer (DPO) Since every company is a data company today, it becomes extremely important to appoint a Data Protection Officer (DPO) to establish a code of conduct when handling personal and sensitive information. The DPO oversees data protection policies, conducts risk assessments, prevents and manages data breach incidents, and collaborates with inter-departmental stakeholders to ensure data privacy compliance. 2. Workplace compliance management best practices -The Processes Compliance management involves several key processes to ensure adherence to regulations and best practices. The steps an organization should take to build a compliance management program are: a.) Internal compliance audit The compliance management process begins with conducting an internal compliance audit. The audit should be designed to accurately evaluate: The organization's policies,

10. Procedures, and Practices to identify any gaps or areas of non-compliance. Aspects covered in the general audit would include data protection, operational processes, financial practices, and HR and hiring policies. Organizations gain insights into their current compliance status and identify areas for improvement. b.) Mandatory compliance training for all departments Compliance training is crucial for all departments within the organization as most functions in large enterprises handle some amount of customer data, and have specific responsibilities regarding data handling and compliance. Let’s look at how different departments handle data and their corresponding compliance training needs: Marketing: Marketers have access to a lot of customer data, like email ids, social media profiles, phone numbers, job roles, company names, and the location of a user. This data is typically used to optimize marketing campaigns. Compliance training for marketing teams should focus on data privacy regulations, consent management, and accurate representation in advertising materials. Operations: Operations teams in most companies need frequent training on safety protocols and updates on supply chain compliance, quality control, safety protocols, and training on adhering to environmental regulations. Finance: Finance departments track how revenue moves through an organization's system. They must provide accurate and transparent financial transactions, record-keeping, and reporting. They also may have access to customers' financial credentials.

11. Their training should cover financial regulations, anti-money laundering (AML), fraud prevention, and data reporting. HR: HR departments handle sensitive employee data, manage hiring processes, and ensure adherence to labor laws. Compliance training for HR professionals includes anti-discrimination laws, workplace safety regulations, employee privacy, and ethical conduct. C.) Creating an employee handbook The employee guidebook consolidates all the compliance-related rules, policies, and procedures in a single document. A handy asset like this can provide employees with comprehensive information about their rights, entitlements, and responsibilities within the company. The handbook also serves as a compliance tool to promote employee commitment toward compliance. Receiving their copy of the handbook establishes a formal and psychological acknowledgment of understanding and acceptance of the information and instructions provided. Organizations can also create procedural checklists for employees that can be hung in the office bay or propped up on desks. These checklists guide employees to pay attention to all important steps and clearly understand what needs to be done in various situations. By utilizing procedural checklists, organizations can enhance compliance and facilitate consistent and accurate execution of tasks. d.) Facilitating communication between employees and the C-suite

12. Effective communication between employees and the top executives, often called the C-suite, is crucial for compliance management. Organizations should establish safe channels for employees to raise compliance concerns, report potential violations, or seek policy clarification. Regular communication from leaders regarding the importance of compliance, updates on regulations, and reinforcing the organization's commitment to compliance helps foster a culture of compliance. e.) Annual or bi-annual risk assessment Regular risk assessments are vital to compliance management and should be performed at an annual or bi-annual cadence. The goal of these risk assessments is to identify and evaluate potential compliance risks by reviewing internal processes, external factors, industry trends, and regulatory changes that may impact compliance. Continuous assessment helps organizations proactively address potential risks, develop mitigation strategies, and prioritize or update compliance efforts based on the identified risks. 3. Compliance best practices -The Technology Promoting workplace compliance often involves leveraging various technologies to streamline processes, enhance monitoring, and facilitate communication. For example, the integrated workplace management system (IWMS) UrSpayce provides a centralized platform for workplace compliance-related activities.

13. Other tools include compliance management platforms like VComply and Sprinto that give complete visibility into organization-wide compliance and risk management programs to mitigate the risks of business disruption. Compliance standards for workplaces The five most important regulatory compliance guidelines designed to protect personal information data are: GDPR The General Data Protection Regulation (GDPR) sets stringent rules and guidelines for the protection of the personal data of individuals within the European Union (EU). It is needed to safeguard individuals' privacy rights, provide transparency in data processing, and hold organizations accountable for proper data handling. SOC 1 SOC 1 (Service Organization Control 1) is a compliance standard focusing on internal controls and financial reporting. It is necessary to ensure the reliability and accuracy of financial information provided by service organizations, particularly those that impact their clients' financial statements. SOC 1 compliance helps organizations maintain effective internal controls, mitigate financial risks, and assure clients and stakeholders regarding the accuracy and integrity of financial information. SOC 2

14. SOC 2 is a compliance standard that assesses the security, availability, processing integrity, confidentiality, and data privacy within service organizations. SOC 2 describes the security measures that organizations handling sensitive customer data should implement to protect against data breaches and maintain the privacy and confidentiality of information. ITAR The International Traffic in Arms Regulations (ITAR) is a compliance standard that regulates the export and import of defense-related articles and services in the United States. ITAR was devised to prevent the unauthorized transfer of sensitive military technologies to foreign entities. The regulations state that no non-US person/entity can have access to items stored in an ITAR environment. HIPAA The Health Insurance Portability and Accountability Act (HIPAA) sets privacy and security requirements for protecting individuals' health information. It aims to maintain the confidentiality, integrity, and availability of sensitive healthcare data, uphold patients' privacy rights, and prevent unauthorized access, use, and disclosure of protected health information. ISO 27001 ISO 27001 is an international information security management system (ISMS) standard necessary to establish a systematic approach to managing and protecting sensitive information within organizations, regardless of industry or size. ISO 27001 compliance helps identify and manage information security risks, implement appropriate controls, and continuously improve

15. information security practices, ensuring information assets' confidentiality, integrity, and availability. The role of the integrated workplace management platform UrSpayce in protecting workplace compliance With the ever-increasing complexity of regulations and the need for streamlined processes, relying on manual methods for compliance management becomes inefficient and prone to errors. UrSpayce’s compliance regulatory requirements feature offers a centralized approach to workplace compliance management. The benefits of implementing UrSpayce for compliance requirements are: Enables organizations to monitor, track, and enforce compliance requirements across various aspects, such as safety protocols, document management, and visitor management. Maintains enterprise-grade security of sensitive information such as visitor’s NDAs, health data, and so on. The key workplace compliance regulation features of UrSpayce that help protect intellectual property, data, and physical spaces are: Visitor logs for efficient tracking of visitor entry and exit from the premises, ensuring compliance with safety and security protocols. Controlled access to spaces and documents, allowing organizations to enforce appropriate permissions and ensure confidentiality. Monitoring and tracking Wi-Fi usage and promoting data privacy by recording who is accessing the network. Cloud storage of required NDAs and agreements. Our platform also mandates that visitors sign necessary legal documents, providing legal protection and compliance assurance. Confirmation on visitor checkout to maintain accountability and adherence to organizational policies and avoid tailgating or unauthorized access to the workplace.

16. UrSpayce's powerful features empower organizations to proactively protect workplace compliance and mitigate risks associated with unauthorized access, data breaches, and non-compliance with visitor protocols. Moreover, in the age of hybrid work, a workplace management platform that can be accessed from anywhere enables transparency and accountability in a decentralized workplace. Summary Workplace compliance management involves implementing processes, policies, and practices to meet legal and regulatory requirements. The primary goal is to mitigate risks, promote ethical behavior among employees, and safeguard the well-being of employees and stakeholders. The benefits include avoiding costly fines and penalties, minimizing reputational damage, fostering a culture of integrity and accountability, and enhancing overall operational efficiency. Technology is crucial in compliance management by enabling streamlined processes, automated monitoring, data analysis, and reporting. Integrated workplace management solutions like UrSpayce facilitate efficient workplace compliance. To know more about how UrSpayce simplifies compliance regulations, sign up for a free trial.