Company policies and compliance are set up for obvious reasons – to ensure effective operation, to keep the work error-free, and to maximise every contributor’s effort.
However, it is unwise to just set up the rules and expect everyone to follow them religiously. As a manager, it’s part of your job to make sure that the employees respect and stick to the policies, and you know what? They often don’t.
In a survey which sampled more than 5,000 employees at all levels, Gartner, Inc. found that 29% witnessed at least one compliance violation at work during 2016 and 2017.
However, that’s not the worst part. 59% of the respondents who observed a violation at work were actively looking for a new job, while only 29% among those who didn’t were doing so. In other words, employees who witness violation are twice as likely to leave the company.
Brian Lee, compliance practice leader at Gartner, pointed out that many compliance executives are overlooking the consequences of employees not following company rules.
Since the employees who decide to leave are those with high standards of personal integrity and those who exhibit the most discretionary effort, their departure will create an enormous impact on culture, morale, and productivity.
Also, Lee warned compliance executives that attrition can be a sign of possible underlying compliance-related issues, and leaders of the company are responsible for establishing a culture of integrity.
“Culture is contagious. If managers and executives demonstrate ethical behavior, employees see the importance of being compliant in their day-to-day workflow and their workplace as whole,” said Lee. “When leaders set a model example, they can communicate to employees with similarly high standards that their organisation is in alignment with their ethical commitments.”