Non-compliance has far-reaching effects for companies, including consumer mistrust, lower employee morale and damage to your company’s reputation, which is ultimately reflected in your bottom line. An effective compliance strategy is critical for today’s global companies. Research from CIODIVE found that the cost of meeting compliance standards is around $5 million, while the cost of non-compliance reaches over $14 million for a single large company.
Employee training is at the core of compliance. To ensure compliance, many companies are using Learning Management Systems (LMS) to centralise their employee training. Effective training has become more important than ever since Europe’s General Data Protection Regulation (GDPR) went into effect last May, bringing about some of the biggest changes in data protection in 20 years. How can an LMS improve GDPR compliance training and training for other regulations?
Why use a learning management system for GDPR compliance training?
In addition to providing customised training for each employee, an LMS documents your employee training. You have written evidence of competencies and certifications. If needed, you would be able to provide regulatory bodies with evidence of each employee’s understanding, not just a generic training record. Consider three more key benefits of using an LMS.
- Customised training. Each employee’s training is customised to fit their needs and job role.
- Accurate reporting. Managers can receive reports showing course completion, enabling them to monitor employee progress in real-time. Individual employees can also see customised reports of information relevant to them.
- Easy monitoring. Training is scheduled and tracked through the LMS for each employee, allowing managers to monitor each training plan. Reminders can be set up to remind managers and employees about regular certifications that must be done.
What kind of training can a learning management system handle?
An LMS is flexible in that it is able to adapt to any type of compliance training. Companies can use it to provide training about sexual harassment, workplace violence, conflicts of interest, and other legislation. An LMS ensures that everyone in the organisation is on the same page regarding these important legal matters, including that of GDPR compliance.
In addition, an LMS can be used for personal development, increasing employee competence and their individual value to the organisation. The result is not just better trained employees. You get a higher ROI on your training investments, increased company credibility and a third-party endorsement of your employees skill level.
Four ways an LMS will make GDPR compliance training easier
According to a Ponemon Institute benchmark study, 90 percent of companies said GDPR compliance will be the most difficult set of compliance regulations they have to reach. The most significant change in the GDPR is that it applies to companies regardless of their location. Any company that processes personal identifiable data for citizens or residents of the EU, even if it is based outside the EU, must comply with the GDPR, and thus, GDPR compliance training is a must.
The new regulations have very comprehensive requirements for how a company collects data, how it uses it and who it shares it with. An LMS with GDPR compliance training will ensure an increased awareness about the importance of this regulation and that all employees receive training based on their individual roles. Simply put, your employees must know how to protect your company from liability by their own actions. An LMS makes it easier to reach that goal in these four ways.
- It’s easy-to-understand. Average employees won’t have a hard time understanding the terms of the regulation. Legislative jargon is defined within the LMS.
- Scenarios are given, so employees learn from realistic examples.
- Each user’s training is centred around their role, the things they can control. Their training is not cluttered with information that doesn’t apply to them.
- Managers can track employee progress and review their understanding, ensuring the training was effective.
Compliance training is critical to companies across the globe. However, training can be tricky since employees are not lawyers or legislators. An LMS ensures employee training is customised to fit the needs of your staff. Learn more about the benefits of an LMS for GDPR compliance training and other elearning initiatives.