With so many rules and regulations governing today's businesses, the need for dedicated personnel to oversee business procedures, financial dealings, health and safety issues, employee and personnel matters, and even environmental issues has never been greater. The compliance industry is the focal point for these many issues, both in terms of making sure, through either audits and reviews, that firms are following all the regulations and in terms of setting policies for companies to make sure that they are prepared to pass those audits.
Compliance — The Key to Staying on the Right Track
Many important rules and regulations govern how businesses are run in today's marketplace. There are regulations detailing financial dealings, stock transactions, safety requirements, employee rights and other personnel matters, and even international transactions between countries. Because there are so many important regulations that can expose a company to legal or governmental problems, many companies now have dedicated staff whose job it is to handle managing and implementing procedures to ensure compliance with these regulations. These personnel, called compliance officers, make sure their clients follow all required regulations. They're responsible for reducing a company or agency's legal and financial exposure from non-compliance issues. Compliance personnel also design programs and initiatives to make sure that these regulations are consistently maintained on a company-wide basis.
Specific Types of Jobs in the Field
There are many kinds of compliance jobs in the compliance industry. Of these many types, the following three are the most visible and well known.
Bank compliance jobs: These professionals oversee financial transactions, making sure that proper accounting procedures are followed. Bank compliance jobs require good accounting skills and a strong sense of integrity. Bank compliance jobs also require five or more years working in a legal or compliance position dealing with financial enforcement, regulations, and consumer finance. A JD degree is also required.
Environmental compliance jobs: These professionals are responsible for making sure that companies follow federal, state, and local rules involving waste disposal, industrial zoning, fire safety, health codes, and other rules that cover environmental impacts.
Healthcare compliance jobs: Healthcare compliance requires monitoring not only current medical safety standards, but also standards of patient care, personnel compliance, licensing, record keeping, and many other areas. Healthcare compliance officers not only work within the medical setting, but must also interface with state, federal, and local authorities to develop compliance with emergency plans, community health care initiatives, and other wider issues. Healthcare compliance is one of the few areas where there is a strong opportunity for advancement, as many compliance officers are well set up to become healthcare executives or administrators for larger medical concerns.
Working Conditions
Most compliance workers, such as those in bank financial compliance, have 9-to-5, Monday through Friday jobs in clean, well-lit office environments. If the position involves more than one location, some travel may also be involved. Compliance auditors are required to spend more time traveling, as they perform audits of assigned territories. Environmental compliance officers may find themselves working outdoors, or on factory floors where hazardous materials or conditions may apply. Heath compliance workers are assigned to hospitals, clinics, or other healthcare facilities; there may be some interaction with ill patients or hazardous conditions, but this is relatively rare.
Earnings
While salaries vary widely among different compliance jobs based on the levels of training and locations involved, top-end compliance officers make between $120,000 and $206,800 per year. This, however, is for those managing compliance efforts on a national or global scale. Financial compliance positions are the best-paying: According to 2006 figures from the US Bureau of Labor Statistics, the median bank compliance salary was $54,630, with an average range of between $42,520 and $71,960. The top 10% of wage earners made more than $94,050, with starting graduate salaries averaging $46,718 to $49,277.
Advancement Potential
Since these positions are usually not part of the management chain, compliance careers rarely feature opportunities for advancement. As a result, some compliance officers eventually leave to start their own consulting firms working with a variety of clients. Many environmental compliance managers operate within government service, which precludes most advancement to other areas. Bank compliance officers occasionally move into positions overseeing the compliance work of an entire financial concern. Healthcare professionals are best suited to moving up the ladder, as they can often take on administrative, executive, or management jobs related to their previous jobs.
Employment Outlook
With companies' increased need to adhere to federal and state laws, more firms are hiring compliance workers. According to 2006 US Bureau of Labor Statistics, the industry's growth is expected to equal the national average. Bank compliance positions will be the fastest expanding area, as new financial rules in the current climate of re-regulation are forecast to create as many as 226,000 possible openings nationwide. There may also be an expansion in the environmental compliance area, as “green energy” programs and a greater emphasis on environmental protection appear to be an increasingly important issue.
