Why HR Leaders Should Partner on Compliance Training

When you think about powerhouse teams in business, sales and marketing or product and engineering probably come to mind. But there’s another partnership, often overlooked, that is absolutely critical to a company’s survival: the collaboration between HR and compliance.

Let’s explore how these two functions work together to build a workplace grounded in ethics—and why this partnership is more vital than ever.

The High Stakes of Compliance

The risks of mishandling compliance are enormous. It’s not just about a small fine here or there; the financial and reputational consequences can be catastrophic.

• The cost of compliance: An average of $5.5 million annually.
• The cost of non-compliance: A staggering $14.8 million—nearly three times higher.
• Regulatory fines in 2018 alone: $4 billion, not counting hundreds of millions in legal fees.

And those numbers only scratch the surface. The hidden costs—business disruption, loss of customer trust, declining productivity, and damaged employee morale—can prove even more devastating.

A Moving Target

Compliance isn’t static. Regulations shift constantly, becoming more complex year after year. Consider the recent changes:

• The rapid rise of remote work, which created new training and oversight challenges.
• Regulators now scrutinizing how well compliance is embedded into daily business, not just whether a program exists.
• New laws emerging around data privacy, workplace safety, and more.

It’s too much for any single department to manage alone. This new reality demands cross-functional teamwork.

Why HR Is the Strategic Hero

While compliance experts define the rules and identify risks, HR brings unique strengths to the table:

1. Engaging training: HR knows how to design learning experiences that employees actually absorb—not just “check-the-box” sessions.
2. Culture building: HR shapes the company culture from the ground up, ensuring ethics are lived, not just written down.
3. Systems and tracking: HR manages the tools to ensure training completion and accountability.

By turning dense legal jargon into relatable, memorable lessons, HR makes compliance training stick.

The Power of Partnership

Even HR cannot win this game alone. Success depends on a team sport approach:

• Compliance teams provide expertise on laws and risks.
• HR teams translate that knowledge into training and behavior change.
• Operations leaders ensure the training is practical and relevant to each role, whether in sales, manufacturing, or customer service.

The numbers highlight why this collaboration matters: 95% of all data breaches stem from human error. People are the first line of defense, and HR is uniquely positioned to help them build better habits.

Building a Speak-Up Culture

At its core, compliance isn’t just about avoiding fines—it’s about cultivating a culture of integrity. A crucial element of that is fostering a speak-up culture, where employees feel safe reporting concerns without fear of retaliation.

While compliance may provide hotlines and reporting mechanisms, HR creates the trust that makes employees willing to use them. As Peter Drucker famously said, “Culture eats strategy for breakfast.” In compliance, culture is not just part of the plan—it is the plan.

A Competitive Advantage in Talent

Strong compliance culture also delivers measurable HR benefits:

• 86% of HR managers say it improves employee retention.
• 83% believe it strengthens recruitment by enhancing the company’s ethical reputation.

Employees want to work for organizations they can be proud of. Ethics, in this sense, become a competitive advantage.

Final Takeaway

The partnership between HR and compliance isn’t a “nice-to-have.” It is a strategic must-have. Together, they reduce risk, strengthen culture, protect the business, and make the company more attractive to top talent.

The real question for leaders is this:
Is the HR–compliance partnership in your organization strong enough to safeguard its future?