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Grow Employee Engagement with a Strong Investigation Process

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In a tight labor market, employers are seeking to gain or retain a workforce with more pay, work for home and other perks. They can also improve retention through a culture of trust and consideration. Improve how you listen and investigate when someone on your team speaks up about compliance. If you investigate with urgency and respond, then you’ll gain trust and build employee engagement.

Here is an anecdotal case, from the perspective of the business: An anonymous report comes in from a small foreign office, that says “It seems like there is something going on between the marketing lead and a partner. I suspect they are wasting marketing funds.” The seriousness of the issue is not entirely clear—maybe the person reporting the issue is questioning the quality of the marketing campaigns. It is a challenge to reach people overseas.  Some initial questions are asked, but the case sits for months before anyone starts reviewing the matter closely. 

After almost a dozen interviews, no one reveals anything useful. The answer has to be found by sifting through years of email. The investigation ultimately uncovers how the company is being taken advantage of. It is shocking how so many people in the office know the marketing lead is stealing company funds, but said nothing. 

After the late start, combined with actual wrong-doing that is festering, the person who reported the wrongdoing and the rest of the office have stopped caring. The business is left with a problem infecting the whole office, instead of having to deal with only one or two bad actors.

Compliance is a Retention Issue

A compliance report may raise questions about potentially uncomfortable topics: harassment, fraud, conflicts of interest or any number of issues highlighted in a typical code of conduct. When a report is substantiated, someone might be disciplined or fired—thus, colleagues may view the person who reported the issue as disloyal to the team. Those who come forward may also fear that their company may not care about the reported issue or try to cover it up, and maybe even retaliate against them.

With the risks reporting presents, it is likely to be the most engaged, loyal employees who report, so you risk losing your best if you fail to listen. This happens when you leave reported issues unaddressed, where you fail to rectify a substantiated report or when you let a report languish unresolved. But if you follow up and respond quickly, you will win trust. When a talented employee feels listened to, they will have higher morale, trust the boss more and be more committed.

Improving Investigations

Listening to a compliance reporter is about taking the issue seriously and expediciously running it to ground. The foreign office scenario above would have gone better had the investigators seen through the vagueness of the report to the potential seriousness of the underlying misconduct and then doggedly pursued a resolution from the start. With those in the office uncooperative in interviews, having access to past email made it possible for the investigation team to close the case.  

Here are five tips to improve and speed up how you investigate:

  1. Have a process: Implement a disciplined approach for following the routine steps in a compliance investigation—assessing the initial report; developing an investigation plan; finding, verifying and analyzing to formulate a decision; and resolving with discipline, prevention, and training.
  2. Be selective when choosing your investigators: Staff your investigative team with individuals who are not wired to let cases sit. Provide them investigation training and consider augmenting with outsourced external investigators if an issue is large or complex.
  3. Define objectives: Set a clear objective for the investigation at the outset to keep investigators on track. The investigation can move on when they have obtained sufficient facts about the objective—finding that “smoking gun” email, for example. When you learn something new that needs further review, flag it for later but do not let it interfere with your first objective.
  4. Use technology: Give your investigators direct access to the data. It is frustrating for an investigator to receive a report and then have to wait for IT to provide the relevant emails or other data, then wait for IT to provide additional materials when the investigator learnes something new. The team’s investigation times accelerate when it has direct access to email and other communications through archiving platforms and other technology.
  5. Track timing: The time to complete an investigation is dependent on the circumstances. The investigation team should set period of time to resolve the investigation when a compliance issue arises.

A business builds a strong culture when it supports those who speak up. Having a strong investigative team, defining objectives, using technology and being aware of completion timing will allow you to quickly learn what is going on. You will also demonstrate that you are not using a haphazard approach.  This will give your employees more confidence in your company and encourage them to stay around.

Responding to Litigation Hold Notices

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The purpose of a litigation hold is to preserve relevant information when an organization reasonably believes this information can lead to an investigation or litigation. The information to be preserved can be documents, equipment and/or electronic information or materials that may be relevant to a lawsuit or an investigation, depending on your industry. If relevant documents or information are lost, altered or destroyed, the company could suffer serious legal consequences.

The spoliation of evidence is “the intentional, reckless, or negligent withholding, hiding, altering, fabricating, or destroying of evidence relevant to a legal proceeding.” The maximum penalty for destroying or concealing evidence is either six months in a county jail or a fine up to $1,000, or both. For example, spoliation can occur when documents are shredded, emails erased, physical evidence is sold, destroyed or hidden and otherwise rendered unavailable for trial. It is the company’s duty to take all reasonable steps to preserve potentially relevant information.

The risk professional’s role is vital—he or she may be aware of an incident that might give rise to a claim or suit, well before a suit is filed, sometimes even a year or more. For example, if you receive an incident report that a third-party vendor fell on your property, you would call security to see if there is video of the incident, and if so, secure a copy of that video. You would interview any witnesses, preferably on the day of the event while memories are fresh, and document the incident in their words. If the victim alleges that something caused the fall, then you should take photos of location and determine whether the pavement was wet or dry, there was debris in the aisle, what the weather conditions were, and other considerations. Once you complete the investigation, all documentation should be stored and secured.

If there is a claim that is either in a lawsuit or the company believes could later become a lawsuit, the clock starts ticking on litigation hold notices. In the United States, the law requires that companies comply with their duty to preserve evidence. Evidence is broad and can include an automobile involved in an accident; emails; a chair involved in a slip and fall; videos, voicemail, photographs or text messages; among others. The notice can involve official company files, personal files or non-official files. All information that may be relevant to the matter must be preserved.

Preserving potential evidence that the company believes may reasonably lead to a lawsuit or investigation takes a coordinated effort that can involve legal, risk management, IT, HR, compliance, engineering, security and any other department.

If you are an employee who may have information pertinent to investigation or lawsuit, you would be considered the custodian of this information and would have a legal obligation to preserve such evidence. As custodian, the legal department or possibly a third-party administrator would instruct you to preserve the evidence. The general procedure is that you would receive a notice on a matter that could be involved in an investigation or a lawsuit. You will be required to review, comply, sign and certify a document that states you agree to preserve information that would be related to the event. There may be a requirement to return signed document within a certain amount of time from receipt, and violation may result in disciplinary action that can include termination.

The evidence required may be very specific (such as video recorded on this date), or general (like all related emails), and may include a date range. Once identified, do not destroy, alter, modify or delete documents subject to the hold notice. When the lawsuit or investigation is completed you will receive a termination and release of this obligation. The evidence may be saved as part of the company record retention program.

Risk management can play an important role in this process by storing the hold notice in the claim file, periodically reminding custodians of their obligations, involving and sending new notices for new custodians that might have evidentiary material, and notifying custodians of termination of hold notices.

WHO Classifies Burnout as Occupational Phenomenon

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The World Health Organization (WHO) has officially recognized workplace burnout as an occupational phenomenon in the latest version of its “International Classification of Diseases” (ICD). This official designation indicates how serious workplace burnout and stress are as an impediment to a healthy, productive work environment, and how important it is for employers to take concrete steps to address it.

Since 1948, the WHO has published the ICD, which “defines the universe of diseases, disorders, injuries and other related health conditions, listed in a comprehensive, hierarchical fashion.” The last published version of the ICD defines “burnout” as a “state of vital exhaustion,” but the forthcoming edition has updated that definition, clarifying that it is a condition that occurs specifically in the workplace.

The new definition includes: “Burnout is a syndrome conceptualized as resulting from chronic workplace stress that has not been successfully managed. … Burnout refers specifically to phenomena in the occupational context and should not be applied to describe experiences in other areas of life.

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” The three factors the WHO identifies for classifying burnout are:

  1. Feelings of energy depletion or exhaustion,
  2. Increased mental distance from one’s job, or feelings of negativism or cynicism to one’s job, and
  3. Reduced professional efficacy

According to a 2017 Gallup poll, 23% of U.S. employees “reported feeling burned out at work very often or always, while an additional 44% reported feeling burned out sometimes.” When workers suffer from burnout, it can have serious effects on business performance. A 2017 survey conducted by Kronos Incorporated and Future Workplace also noted that “95% of human resource leaders admit employee burnout is sabotaging workforce retention,” and “nearly half of HR leaders (46%) say employee burnout is responsible for up to half (20% to 50%, specifically) of their annual workforce turnover.” This means higher recruiting costs, additional time for other employees and managers involved in the recruitment and training processes, as well as potential business interruptions and lost institutional knowledge.

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Gallup also noted that employees experiencing burnout “are 63% more likely to take a sick day,” and alarmingly, “are 23% more likely to visit the emergency room.

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” Indeed, in 2015, the Harvard Business Review says that workplace stress caused additional physical and psychological healthcare spending between $125 and $190 billion annually in the United States. Given the rising costs of U.S. healthcare and increasing recognition and treatment related to burnout, it is likely that these numbers have only increased.

Gallup reports that the top five factors most highly correlated with burnout are:

  • Unfair treatment at work
  • Unmanageable workload
  • Lack of role clarity
  • Lack of communication and support from manager, and
  • Unreasonable time pressure

The American Psychological Association’s Center for Organizational Excellence has outlined the importance of communication to maintaining a psychologically healthy work environment, both bottom-up and top-down. The APA’s recommendations include “providing regular, on-going opportunities to provide feedback to management,” and “leading by example, by encouraging key organizational leaders to regularly participate in psychologically healthy workplace activities in ways that are visible to employees.” The organization also emphasizes work-life balance, noting that instituting policies like flexible work arrangements and assistance with childcare can provide “benefits in terms of increased productivity and reduction in absenteeism, presenteeism and employee turnover.”

When companies take workplace stress seriously, and implement processes to address burnout and create healthy work environments, they see happier workers, higher retention and greater productivity, as well as lower costs. The WHO officially acknowledging burnout as a serious workplace concern should be a wake-up call for employers.

Are Your Employees Preparing to Quit?

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A new study shows that changes in employee engagement and loyalty can indicate whether an employee is planning to leave, and these changes may start up to 9 months before an employee quits. In The 9-Month Warning: Identifying Quitters Before It’s Too Late, workplace data analytics firm Peakon and its research arm Heartbeat drew on polling of 30 million employees in 125 countries to help employers spot the signs and mitigate resulting risks.

Turnover and recruitment to replace departing employees is costly for companies. The hiring process can take weeks or months, and includes both direct and indirect costs from paying recruiters to staff time and lost productivity. Training new staff also takes time and money, and losing institutional knowledge when an employee departs can slow operations or, in a worst-case scenario, can even compromise client relationships or handicap major aspects of the company’s business. There can also be reputation costs, especially if the potential applicants see a stream of departures.

The study stresses that decreasing employee engagement—which it defines as “the level of personal investment an employee has in their work”—is an important indicator of imminent departure. Nine months before quitting, researchers found an employee’s engagement and loyalty to the company drop significantly. The study measured engagement by asking respondents, “How likely is it you would recommend [Company Name] as a place to work?” and measured loyalty by asking, “If you were offered the same job at another organization, how likely is it that you would stay with [Company Name]?”

Various factors contribute to a decline in engagement and loyalty, including in some counterintuitive ways. The study shows that respondents considered unchallenging work more of a reason to leave than having too much work. When their work is not challenging, employees’ sense of accomplishment begins to significantly drop 9 months before quitting, while their feelings about their workload stay relatively steady until their departure.

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Additionally, the study found that communication and relationships between managers and employees may be more important for retention than salary level or other factors. Employees are more likely to leave if they feel unable to discuss their pay with their manager than if they feel underpaid, and their manager’s support is more important than relationships with colleagues, feeling at home at an organization or believing in its mission.

When employees believe that they do not have opportunities for growth, they also become more likely to leave. This includes personal growth, advancement within the company and whether their managers encourage and provide pathways for growth.

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“When we feel our role is helping us develop into our best self, it can have an incredibly powerful impact on employee engagement,” the study explained.

Companies can address these factors in a number of ways, including offering training programs and growth opportunities, starting an employee recognition program, implementing more frequent or more in-depth employee engagement surveys and providing additional training for managers. One way companies can incentivize these steps is by tying executive pay and other rewards not just to financial performance, but also to retention.

By ensuring that employees feel challenged in their work, feel comfortable communicating with their managers and providing opportunities for recognition and growth, employers may reduce staff attrition and save on costly recruitment and training.

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