Should you hire a compliance officer?

Should you hire a compliance officer?

Franchises have to abide by a significant number of trade and labor laws, and there is growing demand from customers to do business in as ethical a manner as possible. With growing frequency, the American public are asking about the environmental policies of the businesses that they support, and making purchasing decisions based on the sustainability credentials of the products that they need.

With franchises operating potentially hundreds of individual branches across the country, it is essential that each and every individual business sharing a trademark brand operates in a coherent fashion. Their policies must be enacted in the same manner, and customers must be treated in the same way. As important as it is that product consistency is prioritized, so too must be the customer experience.

How to increase focus on the customer experience

One way in which franchises can ensure that this is the case is by hiring a compliance officer. This professional role is filled by an individual who is responsible for the policies and practices of the organization that they represent. They must ensure that the business operates ethically, that allegations of misconduct or breaches to processes are investigated and that all efforts are made to ensure compliance with relevant legislation.

Regulatory violations can have severe repercussions for businesses, with reputational damage alone capable of causing untold harm to a business' profitability and enduring operability. This does not begin to account for the financial harm that could result should punitive measures be enforced on a non-compliant business.

A compliance officer has a pivotal role in analyzing and identifying risk areas, collaborating across the entirety of the organization to recommend and implement necessary changes to policies and procedures, supporting training action to upskill the workforce and preserving the organization's reputation and financial position.

Do you need a compliance officer?

If there is no central person within your franchise organization who is responsible for ensuring that the business is compliant with all applicable legislation and considering ways in which its output can be adapted to better suit the needs of your consumers, then you should probably consider whether a compliance officer would be a beneficial addition to your workforce.

The remit of a compliance officer can be tailored to satisfy your exact requirements and include a focus on equality and diversity in the workforce, corporate governance and even occupational safety. In short, this role is incredibly flexible, and the way in which an incumbent is deployed is largely at the discretion of the hiring organization.

One thing is for certain - a compliance officer is a role that will always add value.