Compliance, whether in the realm of financial regulation, privacy, electrical safety, fire security, occupational health and safety, or something else, is critically important for any organization. Whatever your industry, it is essential that you are compliant with the laws and regulations governing every aspect of your operations. Other than those enforced by governments, organizations can also have their internal regulations or the ones set by some standards bodies such as BSI or ISO.
Though companies have to spend some amount of money, time and effort to ensure their compliance, this will pay off in the long term. By staying on top of compliance, businesses will reap a range of benefits. Let’s look at some of the most important reasons that businesses should stay on top of compliance.
Better Opportunities and More Customers
Some organizations may be lax when it comes to compliance. They try to run their business with the minimum requirements. It may save some money for a short while, but this will bring more trouble and loss of business in the long term.
Such organizations will inevitably face a loss of opportunities and customers as many stakeholders prefer to work with businesses that follow regulations. With a lack of adequate compliance, you will be driving away lucrative projects to your competitor that maintains strict compliance.
Efficient Operations and Resource Utilization
With proper compliance of regulations in place, you don’t have to worry about falling short in terms of technological systems and facilities. As a result, operations will be smooth, resulting in increased productivity. Using standard tools for work and maintaining a professional work environment also saves time and wastage.
Consulting with an expert service provider like PHS Compliance will ensure that you are on top of all compliance matters, as well as helping you to find better processes and new efficiencies. Outsourcing your compliance to expert professionals also means that you can devote your time to running your business.
Avoidance of Penalties and Fines
In today’s advanced world, no business can survive long when not complying with all relevant laws, taxes and regulations. Customers are more educated about compliance, and inspections from government authorities are more frequent and more stringent. Hence, a non-compliant business is always at the risk of being caught red-handed.
Furthermore, penalties and fines of such infractions are ever-increasing and, in some cases, you may face even more severe repercussions such as being shutdown. The only way to avoid this risk is to be 100% compliant and keep across the latest regulatory requirements as these can change frequently.
Prevention of Risks and Losses
A complaint organization will face fewer risks, as it eliminates factors that are likely to cause trouble. Better infrastructure, standard facilities, use of professional services and approved material for production, and legally binding policies help to avoid situations that can be detrimental to the growth of the company.
On the periphery, disasters like fire hazards and employee accidents can be prevented by safe practices and equipment, and compliance can also help a company maintain its strategy, saving it from enormous financial losses. Being compliant gives any organization a strong foundation to build on. Therefore, complaint businesses have high growth potential while minimizing the risk of financial losses.
Better Employee Relationships
A compliant company is likely to retain its employees for a longer, thanks to better working conditions. When an organization has all necessary facilities and equipment as dictated by law, employees automatically enjoy a better work environment that is more professional not to mention safer. Other than these indirect benefits for employees, many regulations are also directly concerned with labor safety and occupational requirements. A lower employee turnover is always good for business: not only does it mean that you hold on to your best talent, it also saves you significantly in hiring and training costs.
Value Addition through Better Social Responsibility
By being compliant, a company is also meeting their responsibilities to society, whether it is to their employees, their customers, the wider environment, or the community in general. Negligence of regulations and lack of compliance, whether it is in the form of unsafe electrical installations or polluting the environment, damage the broader community and reflect badly on the company. Vigorous compliance adds value to a brand, and the organizations at the top are always the ones that take regulations seriously and follow industry best practices.
Whether a small business or a large brand, every organization has regulations it has to follow. Whatever is the industry and the level of the company, regulatory compliance has a range of benefits. Saving money, avoiding risks, avoiding fines and penalties and being able to put the right focus on business activities and strategic objectives are just some of the advantages that come with regulatory compliance.