Signs Your Employee Hotline Isn’t Working and What to Do About It
Compliance hotlines are an essential resource for healthcare organizations, enabling employees to report concerns without fear of repercussion. Research shows that companies with hotlines are nearly 50 percent more likely to detect unethical behavior—but only if the hotlines function as intended.1
The problem is that many compliance teams struggle to evaluate the efficacy of their service. Hotlines rely on factors such as psychological safety and workplace culture that are difficult to measure, leaving many organizations unable to identify and fix issues with their program. What we do know is that 54 percent of whistleblowers say they felt pressure not to report misconduct, suggesting many organizations have a long way to go.2
This article explores how you can gain more clarity about the efficacy of your hotline—and take proven steps to improve its performance.3
The Awareness Gap: Why Employee Hotlines Often Fail
Two factors contribute to a lack of clarity around hotline efficacy:
1. Lack of Measurement
Many healthcare compliance teams set up their hotline and assume their work is done. They don’t monitor the hotline’s performance or generate data to quantify adoption, leaving them unsure about the program’s impact. Surveys show that 49 percent of organizations either don’t measure or are unsure whether they measure employee awareness of their hotline, and even fewer measure employee confidence in the program.4
This problem is especially common in smaller organizations. Larger companies that generate more are more likely to evaluate employee awareness of their hotline. But the reality is, inadequate measurement is a widespread issue that affects organizations of all sizes and kinds.
2. Leadership Disconnect
A lack of hard data on hotline performance leads to a disconnect between executive perceptions and the on-the-ground reality. One global survey found that just 26 percent of employees said it was easy to speak up about compliance issues, whereas 40 percent of board members said the same.5
The result is a lack of urgency around hotline remediation: executives believe they have done everything they can to meet compliance requirements and mitigate risk. In reality, they may be overlooking serious issues, including missed regulatory risks or undetected. That is why it is important to evaluate hotline performance more robustly.
Three Common Warning Signs That Your Employee Hotline Isn’t Working
After over 15 years of industry experience, our team suggests compliance leaders look for three signs that their hotline may not be functioning as intended:
1. Very Low or No Report Volume
A silent hotline is often a sign of disengagement, not the absence of issues. While it’s true that only 6 percent of ethics complaints go through formal hotline channels,6 industry benchmarks offer a powerful guide to understand whether your program is being properly utilized.
The average healthcare employee hotline experiences around 1.3-1.4 reports per 100 employees.7 While a significantly lower number of complaints is not in itself evidence of an issue, it should be seen as a strong indicator that a deeper review is in order.
2. Limited Hotline Promotion
While many organizations discuss “employee awareness” of hotline programs as a success metric, awareness alone is not enough. Employees must not only know the hotline exists, but also understand how it works and feel safe and supported using it to report a concern.
Organizations should evaluate the existing measures in place to promote their hotline. Is it a “one-and-done” effort or an ongoing campaign to build trust and keep the program top-of-mind? The results may surprise you: fewer than 50 percent of organizations run awareness events to promote their hotline—and just two-thirds even list it on their website.8
3. Lack of Follow-Up
More than half of all employees say they expect nothing will be done with their compliance report, which isa major contributing factor to low hotline adoption.9 When reports are submitted but go uninvestigated—or when the reporting party receives no feedback—confidence in the system erodes rapidly.
What to Do About It: Actionable Steps to Fix a Failing Employee Hotline
1. Benchmark Your Current Performance
Benchmark your current report volume against industry standards of 1.3-1.4 reports per 100 employees. If your volume is significantly lower, investigate potential causes such as lack of awareness, trust issues, or inadequate follow-up processes. This baseline measurement provides a starting point for improvement efforts.
2. Increase Visibility and Education
Promote the hotline regularly and include comprehensive coverage in onboarding and ongoing training programs. Employees need to understand not just how to use the hotline, but when it’s appropriate to do so. Running regular communication campaigns helps maintain awareness and reinforce the organization’s commitment to ethical behavior.
3. Strengthen Anti-Retaliation Protections
Reinforce anti-retaliation policies through leadership communications and visible enforcement. When retaliation does occur, address it swiftly and transparently to demonstrate the organization’s commitment to protecting reporters. Consider implementing additional protections, such as ombudsman programs or independent investigation processes.
4. Improve Communication and Follow-Up
Close the loop with reporters whenever possible, showing that concerns are taken seriously and acted upon appropriately. Even when investigations don’t result in disciplinary action, communicate the steps taken and any process improvements implemented. This transparency builds trust and encourages future reporting.
5. Analyze and Act on Data
Track and analyze hotline data systematically to identify trends, gaps, and areas for organizational improvement. Regular reporting to leadership and the board demonstrates the hotline’s value and ensures that insights drive meaningful change. Use data to identify training needs, policy gaps, and risk areas requiring additional attention.
6. Support Multiple Reporting Channels
Support multiple reporting channels, including supervisors, HR, and formal hotlines, while consolidating data for a comprehensive view of internal concerns. Different employees are comfortable with different reporting methods, and offering options increases overall utilization while maintaining oversight.
7. Secure Executive Leadership
Secure executive buy-in so that reports are welcomed and used to drive cultural improvements rather than feared or ignored. Leadership tone at the top significantly influences employee willingness to report concerns. Executives must consistently demonstrate that reporting is valued and that the organization learns from identified issues.
Enhance Your Employee Hotlines with Compliance Resource Center
Evaluating your existing hotline performance can be overwhelming, especially when your organization lacks the internal resources or expertise to generate reliable data.
That’s why leading healthcare organizations trust Compliance Resource Center to manage, evaluate, and optimize their program. Our 24/7 compliance and ethics hotline services10 leverage decades of industry expertise to increase adoption, streamline service delivery, and ensure your hotline works exactly as intended—with far less effort from your internal team.
Want to give your employees a hotline they can truly trust?
Resources
1. Global Ethics Solutions. (n.d.). Effectiveness of compliance reporting hotlines. Global Ethics Solutions. https://globalethicssolutions.com/effectiveness-of-compliance-reporting-hotlines/
2. Reuters. (2024, June 5). Staff warned off whistleblower hotlines, says global survey. Reuters. https://www.reuters.com/sustainability/boards-policy-regulation/staff-warned-off-whistleblower-hotlines-says-global-survey-2024-06-05
3. Compliance Resource. (n.d.). Best practices for maintaining an effective ethics and compliance hotline. Compliance Resource. https://www.complianceresource.com/blog/best-practices-for-maintaining-an-effective-ethics-and-compliance-hotline/
4. White & Case. (2023, September 19). 2023 global compliance: Compliance escalations. White & Case. https://www.whitecase.com/insight-our-thinking/2023-global-compliance-compliance-escalations
5. Reuters. (2024, June 5). Staff warned off whistleblower hotlines, says global survey. Reuters. https://www.reuters.com/sustainability/boards-policy-regulation/staff-warned-off-whistleblower-hotlines-says-global-survey-2024-06-05
6. LRN. (2024, January 23). Is your hotline running cold? How to get meaningful data from internal reporting. LRN. https://lrn.com/blog/is-your-hotline-running-cold-how-to-get-meaningful-data-from-internal-reporting
7. JD Supra. (2018, March 27). 4 reasons why your organization isn’t getting the most from its hotline. JD Supra. https://www.jdsupra.com/legalnews/4-reasons-why-your-organization-isn-t-77585
8. White & Case. (2023, September 19). 2023 global compliance: Compliance escalations. White & Case. https://www.whitecase.com/insight-our-thinking/2023-global-compliance-compliance-escalations
9. White & Case. (2023, September 19). 2023 global compliance: Compliance escalations. White & Case. https://www.whitecase.com/insight-our-thinking/2023-global-compliance-compliance-escalations
10 Compliance Resource. (n.d.). Hotline services. Compliance Resource. https://www.complianceresource.com/hotline-services/
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