Compliance leaders are facing pressure to make the most of existing resources despite economic challenges and increased workload volume and complexity, according to Gartner.
It says that to face these challenges, leaders need to address three investment in technology.

Chris Audet, chief of research with Gartner’s legal, risk & compliance leaders practice, said: “Confronted with economic volatility, a tight labour market, and rising geopolitical tensions, compliance departments are adapting their workflows to an increasingly complex landscape. To successfully manage these challenges, compliance leaders should focus on optimising their spending and staffing decisions, adjusting existing budgets, optimising department productivity, and making technology investments where necessary.”

Tighter budgets: Gartner says high inflation rates and ongoing fears of an impending recession place organisations under resource strain — with compliance leaders now tasked to operate in a more cost-conscious environment. At the same time, workloads have increased due to the effects of the pandemic and there is greater regulatory scrutiny and complexity. Audet added: “The majority of a typical compliance budget is spent on personnel. Given that budgets are flat and wage demands are increasing with inflation, retention becomes doubly important.”

Changing labour and organisational dynamics: Compliance departments have seen a decrease in full-time employee headcounts since 2020, and for 2023 most compliance departments did not forecast a change to these figures. Gartner’s Audet said: “Increased regulatory scrutiny and rising geopolitical tensions have burdened compliance staff in recent years. Coupled with a more competitive talent market, it has been difficult for many compliance leaders to hold on to their existing staff, let alone increase the size of their departments.”

Increased investments in technology: Compliance leaders anticipate technology will be one of the areas of highest spend increases this year with systems to manage hotlines, compliance and ethics training, and risk management systems high on the list. Audet added: “This projected increase is likely a response to growing inflation rates and a highly competitive labour market. Rather than rely solely on capital to execute on these increased workloads, many compliance leaders are turning to technology tools to support their work.”

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