Tag Archives: human resources risk

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Workplace Sexual Harassment: More HR Guidance Needed

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From news anchors, to titans of the entertainment industry, to corporate executives, and elected officials, headlines show no one is above the fallout of sexual harassment in the workplace. Millions of dollars have been paid in settlements and the once mighty have fallen in disgrace.

Yet, a belated resignation or termination doesn’t absolve the employer from legal action—and often leaves the aggrieved and/or juries wondering how the employer might have handled the situation better.

How can risk managers, human resources (HR), executives and companies they serve help prevent sexual or other forms of harassment? The question becomes more pressing now with the “Ending Forced Arbitration of Sexual Harassment” bill. The proposed legislation voids forced arbitration and allows disputes to proceed in court rather than in a confidential arbitration setting. Proponents believe the prospect of making these cases public will reduce such activity in the workplace.

Smart employers aren’t waiting on legislation to make workplaces safer, however. They are planning and training now to reduce sexual harassment to mitigate risk, and therefore, potential damage claims affecting executives and employees across employer ranks. Ensuring such a workplace should result in fewer acts and reports of harassment and insurance claims. As all employers are interested in the bottom line as well as a positive work environment, a more defensible posture against future claims should be top-of-mind for every risk manager and HR Executive.

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Old policies prohibiting harassment must be dusted off, reviewed, updated and publicized. These policies protect those whose accusations are proven to have merit or are brought in good faith, they create consequences for those proven to have abused others, and should clearly define expectations and ramifications.

These strategies can help risk managers, HR teams, and employers keep their organizations out of the headlines:

  • Review internal policies and procedures. When was the last time your organization reviewed the HR policies and procedures manual? Older manuals may ineffectively address the issue, including under the Equal Employment Opportunity Commission (EEOC) guidance.
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    Once updated, make the document available to the workforce in print and online. However, a manual of policies is only the beginning.

  • Training is not a one-time event for select individuals. To paraphrase Aristotle, inclusion training in the workplace is not an act, but a habit. Hire a professional skilled in workplace diversity and inclusion training, and make courses mandatory from the rank and file to the C-suite. Refresh the training every few years, and make sure every new hire is trained as part of onboarding.
  • Create a “See something, say something” culture. Sexual harassment is avoided best in organizations with a culture of transparency and accountability. Management must welcome reports of unwanted sexual advances, and then investigate such claims. Such activity reported but not acted upon can worsen the environment, and become powerful evidence for claimants in harassment lawsuits.
  • Establish a realistic reporting procedure. If protocol urges an aggrieved employee to report harassment to a direct supervisor—and that supervisor is the alleged perpetrator—an obvious conflict arises. Encourage employees to speak directly to HR or a high level manager such as a division, general or plant manager. The reporting procedure should ensure that certain steps are taken so complaints are not swept aside.
  • Empower HR to investigate all claims. If HR receives a complaint, it has a legal obligation to investigate further. Even if the complainant fears an investigation could jeopardize the alleged harasser’s job, the law is clear that a prompt investigation occur to stop any alleged harassment from continuing. Termination or disciplinary action are not necessarily required; often, claimants just want the behavior to stop. It could be immature or otherwise benign playfulness that crossed the line—behavior a simple discussion could remedy.
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    Follow up with the complainant to ensure the behavior has stopped and to document that follow-up occurred.

Effective policies and procedures in place and rigorously followed can help employees know the organization takes sexual, racial, and other forms of harassment seriously; insurers know you’ve established policies designed to protect both employees and the organization against incidents of harassment; and for those who might see million-dollar claims in the news and think they could be next, that you’ve set up your defenses.

Crime Expert Reveals Biggest Gaps in Company Security

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WINNIPEG, MANITOBA, Canada – After decades of working undercover for the Royal Canadian Mounted Police, the U.S. Drug Enforcement Administration and U.S. Customs Service, crime and risk expert Chris Mathers knows where companies are vulnerable and what it takes to protect them.

“In a world where popular culture tells us that the ends justify the means, crime is all about perception,” he said in a keynote address at the 2014 RIMS Canada Conference. “Young people are bombarded with it all the time, but we are in business, too. So the question is, how vulnerable is your business?”

Mathers, who joined the forensic division of KPMG and was later named president of corporate intelligence, shared his insight into how companies can best guard against “the business of crime, and crime in business.”

During his 20 years dealing with drug traffickers, money launderers and members of organized crime syndicates, Mathers developed what he calls a “10/80/10” theory – 10% of the population is truly bad, 10% is truly good and would never lie (but you will probably never meet), and the other 80% is everywhere in between. Identifying and managing the risks of that 80% requires far more work than employers are currently doing, he said.

Background checks may be the single biggest thing companies can do better, Mathers said. While most businesses perform background checks when an employee is hired, such investigations are seldom conducted during the course of employment. As an example, he cited a case where a company had a director who was serving jail time on the weekends. Due to Canadian privacy laws, however, the case was never reported, so no one knew he had been convicted and imprisoned while on staff. In addition to possible reputation implications, the company could have been exposed to liability if any incidents had occurred at work.

While searching for criminal records of new hires is an excellent start, periodic checks should be implemented for all employees. High levels of drug use in the workplace in industries like manufacturing can be further compounded by the lack of drug testing in Canada, Mathers said. Further, 90% of corporate theft cases he have involved perpetrators who were gamblers.

He suggested that investigations should examine whether employees: have extreme views, use or are addicted to drugs, exhibit signs of alcoholism, are addicted to gambling or participate in illegal gambling, frequent prostitutes, or have relatives or a spouse associated with a criminal organization.

Associating with criminals can be a significant risk factor, regardless of the nature of the relationship. “Prostitutes are criminals and associate with criminals,” Mathers said. “They are around that activity and more likely to engage in it, which may mean they steal a client’s wallet or steal the sensitive intellectual property he’s carrying.” Similarly, an administrative assistant who is married to a member of the Hell’s Angels can introduce far more than just reputation risk if the spouse gets involved in illegal activities like drug smuggling.

Employees within a company can also rationalize criminal behavior. In the case of a man found to have stolen thousands of dollars through expense account fraud, for example, Mathers said the company faced a wrongful dismissal suit from the thief. He was never told that he could not steal, the man said, claiming the practice was an “unofficial bonus program.” Further, he claimed his boss had been doing it for years. “People see that behavior and come to think it is OK because they become accustomed to seeing it,” Mathers said. Maintaining regular internal investigations and ensuring compliance does not just bust wrong-doers, but prevents others from developing, especially as new technology continually emerges to make theft easier to commit and harder to track.

“There are no new crimes – they’re the same crimes, they’re just using new techniques to get them to you,” he said. Companies need to keep updating their monitoring strategies to match.

 

Why Employees Quit—And How to Keep Them

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Why Employees Quit

Employee turnover creates tremendous risk—resources are lost in recruitment and training, productivity lags with insufficient staffing, intellectual property can be exposed, and no company wants to get a reputation as a place where no one can stay very long. Further, the implications for workers comp, lawsuits and insurance extended to employees can cause headaches long after a desk has been cleared out.

A few recent studies highlight some of the biggest factors contributing to employee turnover resultant human resources risk, and what managers can do to keep staff and avoid risk.

Why Employees Leave

A new “exit survey” conducted by LinkedIn among members from five countries found that top reason workers left their jobs was because they wanted greater opportunities for advancement. In a related study from the social network, the number one reason employees who were not actively seeking a new job would be willing to leave was for better compensation or benefits. Regular performance reviews and assessments that open up opportunity for advancement in both responsibilities and salary can help keep employees engaged—and prevent feeling they have to stray to stay on top.

Room to Improve

Another recent study from LinkedIn found that 69% of human resources managers thought that employees were well aware of internal advancement programs. Yet only 25% of departing employees said they knew about these opportunities. In fact, of those who stayed within the company and found a new position internally, two thirds found out about the opportunity through informal interaction with coworkers. Strengthening formal retention and advancement programs and improving awareness of these initiatives may go a long way toward getting employees to use them.

Why New Hires Quit

One in six employees quits a new job within six months — and 15% either make plans to do so or quit outright within that time frame, according to Time. HR software company BambooHR found that the primary factor was “onboarding problems”—in other words, HR or managers are failing to properly orient new hires and integrate them into the workplace. This may seem silly, but they could have reason to feel this is a fatal flaw: research from John Kammeyer-Mueller, associate professor at the University of Minnesota’s Carlson School of Management, found that there is only a 90-day window for settling in. If your new employee is not caught up to speed by then, you may see them walk out the door.

Getting Employees to Stay

CareerBuilder surveyed thousands of workers recently to gain insight into why they decide to stay or go. Of those who plan to stay at their jobs, the top reasons they did not want to leave included: liking the people they work with (54%), having a good work/life balance (50%), being satisfied with the benefits package (49%), and feeling happy with their salary (43%). Of those who are unhappy, however, 58% said they plan to leave in the next year. Making sure these bases are covered is a strong step to keeping your top talent at their desks.

Check out the infographic below for more of LinkedIn’s insights into why employees leave, and what you lose when they go: