Incentives in compliance programs: Some examples from Adam Balfour

Incentives in compliance programs: Some examples from Adam Balfour

Incentives need to be a factor in every compliance program.??If you don’t address incentives you are not meeting the legal standards and you are definitely creating an inferior program.??

In an interview in SCCE’s Compliance & Ethics Professional Magazine, Adam Balfour offers some useful examples for addressing incentives. (“Set Goals to Engage Leadership: Meet Adam Balfour,” interview by Adam Turteltaub, Compliance & Ethics Professional 8 (June 2022)).??Adam believes in creating compliance-related performance goals for employees.??He gives as examples of objectives for managers these goals:??“At least once a _____, I will make sure to ask my direct reports whether they have any concerns or know of any wrongdoing.”??Also, he suggests having a goal of asking x number of employees about the importance and relevance of compliance and ethics.?

The performance of employees in reaching their compliance and ethics objectives should be factored into their evaluations and promotion decisions.??He also reminds us that incentives don’t have to be financial – a “thank you” can carry great weight.??In his interview he reports on Bridgestone America’s initiative to provide awards for integrity leadership.??

Adam provides excellent examples of practical steps companies can take in including incentives in their compliance programs.??Because this is so essential for any compliance program, years ago I wrote a white paper for SCCE, Murphy, “Using Incentives in Your Compliance and Ethics Program” (SCCE; 2012),??https://assets.hcca-info.org/Portals/0/PDFs/Resources/library/814_0_IncentivesCEProgram-Murphy.pdf???.??If you cannot figure out how to get started, consider Adam Balfour’s solid advice and take a look at my white paper.??I think you will find this very rewarding.???