The role of Human Resources (HR) within a corporation has traditionally been focused on managing the company’s workforce. However, in recent years it has become increasingly clear that HR has a significant part to play in ensuring corporate compliance. In a recent video titled One Month to More Effective HR in Compliance: Day 5 – Role of HR in Incentivizing Compliance, this shift in thinking and how to practically apply it is examined.
Shared in the August 2023 edition of the ‘One Month to a More Effective Compliance Program’ series, the video is led by Compliance Evangelist Thomas Fox. A key consideration throughout this episode is the role of HR in encouraging ethical behavior within a company’s workforce. Noting the pivotal role of HR in implementing effective compliance programs within corporations, the emphasis is put on incentivizing such behavior.
Rewards for adhering to compliance protocols and upholding ethical standards can be both financial and non-financial, as highlighted in the video. A point of discussion is the importance of an organization recognising and rewarding employees who make ethical choices, even if those choices might not always be the most lucrative for the company.
Notably, the video showcases how the US Department of Justice (DOJ) emphasizes the importance of incentivizing compliance within its guidance. It is therefore crucial that HR takes this guidance into account when devising both the structure and operation of any potential incentive schemes.
As corporations continue to navigate the ever-changing landscape of compliance, the role of HR will be instrumental. Encouraging and incentivizing compliant behavior is a key step towards minimizing risk and upholding corporate integrity. This proves that the role of HR extends far beyond the traditional boundaries of workforce management.