Today’s corporate world has become an increasingly complex maze of new laws, regulations, licensing requirements, and permits as the government cracks down on scandal. Compliance coordinators are often hired to make sure their companies stay in line with both internal and external governing rules. Along with their prominent presence on Wall Street, compliance coordinators can find work in virtually any industry from government and commodity exchange to health care and gas extraction. Compliance coordinators have the hefty task of guaranteeing their companies’ daily operations and workforce as adhering to the highest level of ethical, legal, and financial regulatory obligations. With the 20th best business job according to the U.S. News and World Report, compliance coordinators are important for implementing controls that minimize an organization’s risk for liability.
Salary
According to the Bureau of Labor Statistics, the 246,970 compliance officers currently employed around the United States bring home a mean annual salary of $68,000, which could be equated to an hourly wage of $32.69. Compliance officers working for the federal government make higher than average at $75,730, but the highest paid in the profession are employed in pipeline transportation with a mean salary of $97,530 annually.
Beginning Salary
When just starting a career in compliance, it’s common to land in the bottom tenth percentile of earnings with a yearly salary around $36,970. However, it’s important to note that compliance officers have great upward mobility and can eventually break the six-figure mark making over $101,260. In fact, the Chief Compliance Officer can earn up to $185,000 each year.
Key Responsibilities
Compliance coordinators have the primary responsibility of ensuring that the company is maintaining full conformity to the most up-to-date local, state, and federal laws as well as institutional policies and contract requirements. To achieve this, compliance coordinators are involved in performing audits that monitor compliance. Daily duties can include keeping informed on new industry changes, designing compliance standards, consulting with corporate attorneys, conducting periodic internal reviews, preparing management reports, offering employee training on compliance, maintaining record-keeping systems, and filing reports with regulatory authorities. Many compliance coordinators also serve as a confidential point of contact for the company’s employees to report irregularities or compliance concerns.
Necessary Skills
In order to become successful, compliance officers must have a strong working knowledge of both internal and external regulations with the moral code to report inconsistencies. Although a great deal of time is spent working independently, compliance coordinators should have good communication skills to interact with other members of the human resources, legal, compliance, accounting, and management teams. Having good organizational skills is essential for keeping meticulous record-keeping systems to monitor company operations. Compliance coordinators must possess solid problem-solving, critical thinking, analytical, and mathematical skills to pore over important documentation. It’s also critical that compliance coordinators are proactive to actively enforce mandatory reporting policies before a problem arises.
Degree and Education Requirements
Before you can jump into the corporate world as a compliance coordinator, you’ll need to have at least four years of post-secondary training to earn an accredited bachelor’s degree. Most compliance coordinators have graduated from business school with an undergraduate major in accounting, business administration, finance, statistics, human resources, or economics. For the best career preparation, aspiring compliance officers should develop their financial background with courses related to auditing, taxation, business law, ethics, compliance, fraud examination, and risk management. Due to the growing number of regulations and responsibility, many compliance coordinators are heading to graduate school to fine-tune their skills with a Master of Accounting (MAcc) or a specialized Master of Business Administration (MBA).
Pros and Cons of the Position
As with all other accounting careers, becoming a compliance coordinator will have its highs and lows in monitoring alignment with regulations. Of course, the most noticeable advantage is that compliance coordinators earn a decent salary that has the potential to grow rapidly with career advancement. Compliance officers maintain relative independence while reporting only to the senior executive staff. Many compliance officers take on leadership roles in motivating the company’s employees to implement good compliance standards. They also have the intrinsic reward of ensuring the most ethical business practices are used. On the other hand, compliance coordinators will likely face heated competition with other business school grads. Some may find this office job stressful due to its heavy emphasis on analyzing the company’s quantitative information to avoid costly consequences. Compliance coordinators also need several years of experience and must continually learn about the latest government regulatory changes.
Getting Started
While earning an appropriate education, aspiring compliance officers should begin immediately receiving field training for real-world work experience. Completing a co-op or internship is an excellent choice for business students to get an inside look at how real companies are handling compliance. It’s best to opt for an internship within the industry you wish to work in. Conducting research on the company’s institutional policies and the industry’s current laws will be helpful too. You may need to start your career in compliance by working up from entry-level positions in staff accounting, but this will only enhance your future abilities. You should consider proving your professional credibility by earning certification. It’s possible to become a Certified Professional Compliance Officer (CPCO) through Advancing the Business of Healthcare (AAPC) or a Certified Regulatory Compliance Manager (CRCM) within the American Bankers Association.
Future Outlook
Due to the recent spike in fines and penalties jolting companies nationwide, there’s been a hiring spree in compliance to make certain organizations are protected from tightening business laws. According to the BLS, compliance officers have a below-average unemployment rate of 5.7 percent. In particular, J.P. Morgan Chase reported that the company has added 1,600 new compliance positions in the past year. The Wall Street Journal even called compliance the “Hottest Job in America.” It’s projected that the demand for compliance officers will lead to the creation of around 11,000 new jobs before 2022. Individuals can reap the best job prospects by specializing in the health care, finance, manufacturing, oil extraction, or government industries.
Overall, compliance coordinators play an important role in the corporate world by ensuring that a company’s managers are adhering to rules established by regulatory authorities. Compliance officers devote their full attention to tracking any violations in policy standards of conduct and develop new compliance activities that prevent unethical practices in the company. If you choose to become a compliance coordinator, you’ll build a rewarding career guaranteeing the safety and good governance of organizations in accordance with laws.
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