How Do Case Closure KPIs Impact Substantiation Rates?

How Do Case Closure KPIs Impact Substantiation Rates?

The debate over whether performance metrics for closing cases within specific time frames negatively impact case substantiation rates is a contentious issue, according to an article by Navex. While key performance indicators (KPIs) are crucial for assessing business success, including compliance efforts, they can inadvertently lead to behavior that prioritizes meeting metrics over thorough investigations.

The article highlighted a recent survey showing a majority (65.4%) of respondents believe that KPIs aiming to close cases quickly do influence the substantiation rate. This concern is underscored by contrasting regional trends. In North America, cases are closed in a median of 21 days, with a 40% substantiation rate in 2023, while in Europe, cases take a median of 58 days to close, with a substantiation rate of 50%. Despite longer investigation times in Europe, substantiation rates are notably higher and have been increasing.

The disparity prompts questions about whether expedited case closures in North America compromise investigation quality and subsequently lower substantiation rates. The article suggests that compliance teams may face pressure to prioritize speed over thoroughness to meet KPIs. This concern is not unfounded, as organizational focus on KPI achievement has historically led to ethical compromises, as noted in broader industry reports.

Ultimately, the data challenges organizations to reassess how KPIs are set and monitored, ensuring they align with ethical standards and do not inadvertently undermine compliance objectives. The Navex article calls for a balance between efficiency and rigor in investigations, suggesting that focusing solely on closing cases quickly may not always serve the broader goal of maintaining ethical standards and enhancing compliance effectiveness.