The cost of compliance adminstration
According to the Deloitte report, “Get out of your own way”, Nov 2014, compliance administration has got so out of control that
- 1 in 11, or 9% of employed Australians now works in the compliance sector,
- Employees spend 8 weeks in every year administering and complying to compliance rules
- Senior executives and middle managers spend 8h54 mins every week complying with corporate rules they have set for themselves. Other employees spend 6hrs 36 mins every week on the same.
So we have highly skilled (expensive) managers across Finance, Legal, Accounting, HR, WHS, Facilities, Contracts, IT, Food Safety wasting eight valuable weeks a year time on mundane, administrative tasks. Imagine the benefit if they were spending those eight weeks a year on strategic and operational issues.
Compliance administration is generally spread out piecemeal across an organisation, so no one really knows how much it costs.
By outsourcing to Strytex, a central BPO (Business Process Outsource) service, you can significantly reduce your cost of compliance administration.
The risk of non compliance
Through no fault of their own, most small, medium and even some large organisations can’t afford specialist compliance managers across all the main area of compliance, namely, WHS, food safety, facility management, purchasing, supply chain, IT etc.
Also, more often than not, non specialist business managers and office managers are put in charge of compliance. Not only are these managers not formally trained in all areas of compliance, it’s very difficult for them to keep up to date, which is no easy task
- The Business Council estimates Australia has “well over half a million pages of regulation”, but no-one knows just how many individual rules that really means.
- In fact, we don’t even know how many government bodies there are that can set rules in the first place, let alone the number of rules those agencies have laid down.
Yes, that’s right – we can’t even count the rule-makers, let alone the rules! and that’s just part of the problem. According to Deloitte, government, be it federal, state or local, only accounts for 37% of the rules. The vast majority of the rules are self inflicted! Industries and organisations are creating the policies and rules that are causing most of the red tape!
These business and office managers often wear multiple hats so compliance (complex and costly) comes last or is ignored until it’s too late. This double whammy of over-regulation and lack of training puts the vast majority of small, medium and even large organisations at risk.
So how does Strytex help?
By providing a centralised outsourced service, Strytex
- reduces cost by sharing the administrative costs.
Instead of every organisation chasing the same documents across multiple suppliers and contractors, Strytex does it once for the whole industry.
- reduces risk by sharing information across job titles.
When we hear of something new, a change in the regulation or come across a really good way of doing things, we share it across the industry.