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As more and more businesses look to bring in temporary employees or outsource certain roles within their organization, they inevitably open themselves up to security and compliance risks.

Protecting sensitive information for employees — no matter the length of time they’re with an organization — is key in today’s shifting business environment. Not only can non-compliance lead to hefty fines, it can slow down workflows and cause small disruptions that can snowball into something much bigger.

Some of the compliance issues that staffing agencies face include:

  • Misclassification of employees as independent contractors
  • Non-compliant payroll processes
  • Onboarding/offboarding
  • Overlooking eligibility to work processes
  • Background screenings
  • Managing to FCRA standards
  • Discrimination in hiring standards and practices
  • Hostile work environments
  • Workplace safety

Regardless of your industry or the size of your company, compliance is an important topic to have under control. We’ve rounded up a slew of statistics that will help you better understand the current landscape of compliance, know the cost of non-compliance and help gain buy-in from stakeholders to implement processes and standards that are necessary to keeping your organization safe and secure.

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The Cost of Non-Compliance

  1. U.S. businesses spend an average of $10,000 per employee on regulatory costs. (CEI Ten Thousand Commandments 2021)
  2. In the U.S., PCI compliance fines aren’t published, but they can range from $5,000 to $100,000 per month until the issue is dealt with. (Diligent Insights’ How Compliance Officers See the World in 2020)
  3. Regulatory monitoring can save businesses $1.03 million on average. (GlobalScape’s The True Cost of Compliance with Data Protection Regulations)
  4. Globally, fraud causes total losses upwards of $3.6 billion. (Association of Fraud Examiners’ 2020 Global Study on Occupational Fraud and Abuse)
  5. Regulators fined banks $10 billion in a 15-month period through 2019, with most of those fines caused by cyber attacks (60%). (Fenergo)
  6. Organizations spend $5.47 million on compliance compared to an average of $14.82 million for non-compliance. (GlobalScape The Total Cost of Compliance with Data Protection Regulations)

Data Breaches

  1. More than 60% of all data breaches involve stolen or weak credentials. (Verizon’s Data Breach Investigations Report 2021)
  2. From February to April 2020, attacks targeting the financial sector grew by 238%. (VMWare Modern Bank Heists Threat Report)
  3. The average cost of a data breach among companies surveyed reached $4.24 million per incident in 2021, the highest in 17 years. (IBM)
  4. Remote work poses a new threat for data breaches. Breaches cost over $1 million more on average when remote work was indicated as a factor in the event. (IBM)
  5. Customer personal data (such as name, email, and password) is included in 44% of data breaches. (IBM)

For even more compliance statistics, our friends at Secureframe have created this helpful infographic that covers some of the top statistics and insights surrounding the current state of compliance, as well as new and changing regulations to keep an eye on.

We hope these statistics will help educate teams about the importance of compliance and set your organization for success no matter what tomorrow brings.

Compliance Statistics

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