Compliance violations can cost organizations money in terms of fines or lawsuits, but there’s a hidden cost of violations that compliance executives may not be aware of: employees that witness non-compliant behavior are twice as likely to leave their organization than others, according to a survey by Gartner Inc. Employee attrition costs large organizations millions of dollars each year, and “the loss of a particularly conscientious employee can be debilitating, not just to culture and morale, but to employee productivity,” Gartner says.Culture of Integrity
The results of the survey reinforce the mandate of leaders to create and promote a culture of integrity, Gartner says. Employees of organizations with low-integrity cultures are two to three times more likely than employees of organizations with high-integrity cultures to observe misconduct.
"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," says Lee. "When leaders set a model example, they can communicate to employees with similarly high standards that their organization is in alignment with their ethical commitments."
