MBA Research

Trend #16: An Increase in Required Compliance Resources

Business Trend

In our ongoing conversations with the business community, we asked them to identify business trends impacting the workplace. One of the most frequently identified trends: an increase in required compliance resources.

The onslaught of new regulations from various governmental entities, self-regulatory organizations, and other entities charged with oversight is straining existing compliance infrastructure. Both the direct (e.g., penalties) and the indirect (e.g., reputation damage leading to lost customers) costs of non-compliance have also increased.

Workplace Implications

Businesses are spending more time updating and communicating policies, completing regulatory-related tasks and paperwork (e.g., EEOC, FLSA), and participating in continuing education to meet new requirements. The impact on cost is just part of the issue.

These regulations also carry a productivity and opportunity impact. Companies are challenged to find resources that are able to be creative within certain boundaries based on a thorough understanding of their industry or function-specific rules and jargon.  Companies are also emphasizing learning agility and flexibility as desirable competencies that better position the individuals and the company for success in the changing environment.

Classroom Implications

Instructors need to find out what resources Business Administration students can access to keep up to date on regulatory matters impacting students’ specific career focuses. They should have students monitor the resources to track regulatory changes. During a class discussion, students can explain why the changes occurred and their impact on their industry or function of interest.

Students should also be encouraged to read industry- or function-specific on a regular basis and reflect upon what they read. They should be asked to develop and commit to an ongoing learning plan for their industry or function of interest. Students should have opportunities to engage in continual learning habits as part of the classroom experience.