Selecting the provider for compliance training is among the most essential risk management decisions you could possibly make for the organization. A good provider will certainly increase your legal defensibility and will provide you with the best return on investment. A bad provider, on the other hand, could easily become the source of considerable risks and could end up costing you much more than the cost of the annual subscription service you pay to the provider.
According to SHRM, the cost of a bad employee could reach five times the employee’s salary per year, and the same could hold true for the provider of the compliance training service.
Often, organizations are caught up in the cycle of complacency, remaining with a legacy supplier even though the association has gone from bad to worse. In this guide, find the seven warning signs that indicate it’s time to switch. Awareness of these warning signs is the point at which your organization and your compliance program can realize its full potential.
The Problem: When Your Provider Becomes a Liability
A compliance training provider’s core function is to reduce risk. When that provider fails to deliver on that promise, it becomes an active liability. It’s outdated content, poor technology, and a complete lack of strategic guidance that create a false sense of security while compliance gaps widen. According to Gartner, 45% of procurement leaders have cost optimization as one of their top priorities, but the reason for switching from a low-performing provider isn’t just about cost—it’s about mitigating catastrophic risk. A provider that cannot provide detailed, audit-ready analytics or engaging, modern content is not a partner but rather a problem begging to happen.
The 7 Red Flags It’s Time to Switch Providers
If you recognize several of these red flags, it’s time to start evaluating new partners who can provide the strategic value and risk mitigation you need.
1. Stagnant, Generic, and Outdated Content
The Red Flag: Your provider’s course catalog hasn’t been meaningfully updated in over a year. The content is generic, lacks industry-specific scenarios, and fails to address new regulations or emerging risks. This is the most critical warning sign, as stale content is legally indefensible.
Why It Matters: Regulators and courts expect training to be current and relevant. Using outdated materials demonstrates a failure to exercise due diligence, leaving your organization exposed. Deloitte’s research highlights that modern learning must be dynamic and contextual, a standard that generic content can never meet.
2. Plummeting Employee Engagement and Adoption
The Red Flag: Completion rates are consistently below 85%, employees complain the training is boring, and there’s a general sense of “checking the box.” The training is seen as a punitive requirement, not a valuable tool for professional growth.
Why It Matters: Low engagement directly correlates with low retention, meaning employees aren’t internalizing critical compliance knowledge. This leads to a higher incidence of misconduct and a weaker compliance culture. Interactive, engaging content is no longer a luxury; it’s a core requirement for effective training.
3. Lack of Actionable, Audit-Ready Analytics
The Red Flag: You can’t easily pull detailed reports on completion status, assessment scores, or training history by employee, department, or risk level. Your provider’s analytics are superficial, making it impossible to demonstrate training effectiveness to auditors.
Why It Matters: In the event of a regulatory inquiry or lawsuit, the burden of proof is on you to demonstrate that your compliance program is effective. Without granular, easily accessible data, you have no defense. A modern LMS provides a clear, defensible audit trail that is your first line of defense.
4. Skyrocketing Total Cost of Ownership (TCO)
The Red Flag: Your initial subscription fee was reasonable, but you’re constantly hit with hidden costs for additional content, support tiers, implementation, and custom reports. Your TCO is now 50% or more higher than the sticker price.
Why It Matters: A lack of price transparency is a major red flag. It indicates a provider focused on short-term revenue extraction rather than long-term partnership. A strategic partner offers predictable, transparent pricing that allows for effective budget planning and demonstrates a commitment to mutual success.
5. A Reactive, Transactional Relationship
The Red Flag: Your provider is essentially an order taker. They don’t offer proactive guidance on emerging compliance trends, recommend new courses, or provide strategic insights based on your training data. Support is slow, and you have no dedicated success manager.
Why It Matters: The compliance landscape is constantly evolving. A true partner acts as a strategic advisor, helping you anticipate and prepare for future challenges. According to ATD, strategic partnerships are essential for navigating complexity and driving business value. A transactional vendor leaves you to navigate this complexity alone.
6. The Technology Feels a Decade Old
The Red Flag: The LMS is clunky, difficult to navigate, and lacks modern features like mobile access, single sign-on (SSO), and HRIS integration. It’s an isolated silo rather than a connected part of your technology ecosystem.
Why It Matters: Outdated technology hinders adoption and creates administrative nightmares. Brandon Hall Group’s research shows that a seamless user experience and robust integrations are top priorities for modern LMS platforms. A provider that hasn’t invested in its technology is signaling that it’s not prepared for the future.
7. No Clear ROI or Business Impact
The Red Flag: You can’t connect your training investment to any meaningful business outcomes, such as reduced incident rates, lower employee turnover, or improved operational efficiency. The training exists in a vacuum, with no demonstrable impact on the organization.
Why It Matters: Compliance training should be a value driver, not a cost center. A modern provider helps you measure and track the ROI of your program, demonstrating its value to executive leadership and justifying continued investment. The World Economic Forum emphasizes the need for upskilling and reskilling to align with business goals, and compliance training is no exception.
The Switching Process: A 4-Step Migration Plan
Switching providers can seem daunting, but a structured approach makes it manageable.
| Phase | Timeline | Key Activities |
|---|---|---|
| 1. Evaluation & Selection | Weeks 1-8 | Use a 12-point evaluation framework to score and select a new provider. |
| 2. Data Migration & Configuration | Weeks 9-12 | Work with your new partner to migrate historical training records and configure the platform. |
| 3. Change Management & Communication | Weeks 13-16 | Announce the change, communicate the benefits, and prepare users for the new system. |
| 4. Launch & Optimization | Week 17+ | Go live with the new platform and begin tracking metrics to measure impact. |
Conclusion: From Liability to Strategic Asset
The continued use of an ineffective provider of compliance training is no longer an option. The risks that may be involved far outweigh any potential gains that may be achieved by continuing this relationship. With the keen insight provided by this guide on seven signs or red flags that should be heeded, you will be in a position to make an informed decision on how to change from being a liability to becoming a positive force that helps your business build resilience on matters of integrity.
References
[1] SHRM. “The High Cost of a Bad Hire.” https://www.shrm.org/resourcesandtools/hr-topics/talent-acquisition/pages/the-high-cost-of-a-bad-hire.aspx
[2] Gartner. “Top Priorities for Procurement Leaders.” https://www.gartner.com/en/procurement-supply-chain/insights/procurement-priorities
[3] Deloitte. “The Future of Corporate Learning.” https://www2.deloitte.com/us/en/insights/focus/human-capital-trends/2019/future-of-corporate-learning.html
[4] Brandon Hall Group. “LMS Trends: What You Need to Know for 2024.” https://www.brandonhall.com/blogs/lms-trends-what-you-need-to-know-for-2024/
[5] Association for Talent Development (ATD). “The Value of Strategic Partnerships.” https://www.td.org/insights/the-value-of-strategic-partnerships
[6] World Economic Forum. “The Future of Jobs Report 2023.” https://www.weforum.org/reports/the-future-of-jobs-report-2023/
