In a world that changes quickly, companies must be ready to adapt at the drop of a hat. Unfortunately, this isn't always about employing the latest technology to increase the efficiency of operations, and businesses must instead be ready to comply with the most recent laws and industry regulations. This necessary effort requires a wide variety of resources, including a dedicated staff and large budget, which can make compliance a major obstacle.
Organizations are slow to comply
A recent report titled "In Focus: Compliance Trends Survey 2014" centered on how companies across the world are following rules and regulations related to business operations. According to the research, only half of respondents reported having a chief compliance officer, despite the fact that compliance budgets and demands are growing. Additionally, the survey cited several inconsistencies with certain practices, as many organizations lacked the money and knowledge to conduct compliance reviews.
"Compliance is becoming more complex and reputational risks due to inadequate oversight carry greater consequences than ever before," said Thomas Rollauer, the executive director for Deloitte & Touche LLP's Center for Regulatory Strategies. "In many companies, the chief compliance officer still lacks the authority and influence to secure the necessary resources, budget and staffing, to effectively address today's compliance challenges."
Still, rising to meet the demands of compliance can be difficult. The report noted that a complete effort must be happening at all levels of a business, starting with the executives and compliance officers in charge of daily operations.
"A cultural shift is needed at the top, from leadership in the C-suite, to stop viewing compliance merely as a pure cost that does not drive top-line growth, and instead, as an investment in critical infrastructure that protects the value of the entire enterprise," Rollauer added.
Risk management remains important
Not every organization has the resources to employ an entire compliance department. However, PEO companies allow businesses to outsource key services, saving time and money while still staying within the boundaries of industry regulations. For example, legal process outsourcing or worker's compensation services provide companies with a comprehensive approach to risk management. Businesses are able to respond effectively to any issue, all the while complying with official rules and preventing troubles from growing in the future.
Many organizations lack the staff and resources to ensure quick, reliable compliance. By partnering with an accredited agency, however, any business can make sure it is staying on top of the rule book and looking out for its employees.