BCInsights Volume 6, Issue 12

Organizations are often unsure of whom and how many people should be managing employee concerns, which can result in a delayed response from the organization. Who should be seeing and responding to employee reports of misconduct, fraud, employee relations, or other inappropriate behavior that occurs in the workplace? Your response may be “depending on the nature of the report,” which still presumes that someone must review incoming reports and then circulate the reports to the appropriate responders.

A logical choice would be to have a lower level manager or administrative assistant perform this “review-and-distribution” function. Alternatively, you might have “everyone” review “everything” - meaning all possible responders would see all submissions. No problem, right?

Not exactly! There are two prevailing concerns to consider – confidentiality and timeliness. Reporting workplace misconduct should be process-driven for consistent application of policies and procedures, it should allow for anonymity of the reporting party, and above all, it should be confidential. The ability to review issues for a company-wide impact, activity trends, and indicators of more serious behavior, in addition to detailed analysis, investigation, and implementation of resulting decisions, typically rests with upper management . . . and by that, we mean upper, upper management. The more levels of an organization that have access to submitted reports may mean more people have knowledge of the issues raised, without the necessary means to take action.

The second concern is timeliness. As soon as a new person is inserted into the process, the process naturally slows down. If those who are designated to receive and distribute reports are focused on other work, tied up in meetings, away on business or on vacation, what happens to the triage process? Without an automated distribution system, valuable response time can be wasted in the triage/review process before reported incidents are delivered to those who can investigate and take action.

What is the solution? Ensure that the reporting system your organization has in place can automatically distribute reports to individuals who have been pre-determined to handle various incident types for specific locations. The faster a report can get from the reporting employee to someone who can investigate and take action, the more efficient and effective your process will be and the more satisfied your employees will feel.

Mental illness, specifically depression, is the leading cause of disability worldwide. A report to President George W. Bush from the New Freedom Commission on Mental Health in 2003 revealed that mental illness costs U.S. businesses $63 billion—yes, billion—in lost productivity annually. Therefore, employers should have a vested interest in promoting a psychologically healthy workplace and take meaningful measures to raise awareness among their workforce. In fact, according to the American Psychological Association, organizations who focus on the creation of a work environment that fosters mental wellbeing reap rewards for doing so: improved quality, performance, and productivity; reduced absenteeism, presenteeism, and turnover; fewer accidents and injuries; enhanced ability to attract and retain top-quality employees; improved customer service and satisfaction; and lower healthcare costs.

So what can an employer do to enhance the mental wellbeing of its workforce? The American Psychological Association suggests the following:

• Provide employees an opportunity for meaningful involvement. Consider establishing a platform upon which employees can voice concerns, participate in decision making, and contribute to company improvement. Many organizations have found success in implementing improvement committees comprised, in part, of employee representatives.

• Assist employees in establishing a reasonable work-life balance. Organizations that allow flexible work schedules, provide or facilitate childcare, and make benefits available to family members see improved employee wellbeing, lower turnover, and increase loyalty among their employees. Be sure to recognize that your employees have responsibilities and interests outside of your doors.

• Invest in your employees’ personal and professional development. Your organization can only benefit from helping employees become stronger and more knowledgeable in the work they do for you. Consider providing financial assistance for continuing education or tuition. Establish internal training courses designed to help your employees strengthen existing skills and develop new ones. Pave paths to leadership positions.

• Make health and safety a priority. An environment free of physical threats and dangers cannot be understated. Make a commitment to evaluate the safety and security features of your workplace regularly, and don’t forget to provide adequate safety training appropriate to your workplace. Provide health benefits that have value to your employees.

• Reward and recognize your employees for a job well done, both individually and collectively. Clearly, monetary rewards tend to motivate employees. However, don’t forget that providing competitive health benefits, acknowledging employee milestones, and distributing employee rewards also contribute to employee feelings of appreciation, loyalty, and motivation.

Keep in mind that there is no single approach that will fit within all organizations. Tailor your program to fit the culture and demands of your business.

Many organizations have adopted an employee hotline system as a best practice to provide insight into workplace misconduct, as well as to reduce risk and protect employees and company assets alike. Unfortunately, many hotline systems, whether managed internally or managed by a third party provider, are not sufficiently designed to provide the critical data that an organization needs to determine the appropriate course of action upon receiving a report.

Statistically, less than 50% of employees who file a hotline concern check back into their report for follow up questions from their organization (assuming that they have the ability to do so in the first place). If the employee chooses to remain anonymous, the design and operation of the hotline system becomes paramount. For example, a very likely scenario with many hotlines is as follows: Your organization receives a report that is missing pertinent information, i.e. who, what, when, where, how, number of times, etc. The employee has elected to remain anonymous and has not checked back in to answer the follow-up questions. Your organization is still obligated to conduct a good faith investigation and mitigate the incident to reduce the likelihood of ongoing losses and litigation. Critical data is missing and you cannot get these pertinent questions answered. What do you do?

Lack of crucial information when conducting a good faith investigation places your organization at a much higher level of vulnerability, increasing your risk for significant loss in the event of litigation. When you become aware of an incident, delayed or otherwise inappropriate action to further prevent objectionalble behavior will very likely contribute to increased liability and potential damages, whether monetary or otherwise. In other words, without critical data for timely remediation to ease employee duress, the meter on damages is still running.

When implementing an employee hotline or selecting an outside provider, careful consideration must be given to what information is obtained from the reporting employee. Simply setting up a voicemail box or text field on the company intranet to receive reports (as many companies choose to do), these methods will likely lead to receiving reports without sufficient information. A good framework and starting point for your organization is to be certain your internal system or your outside provider for employee concerns requires the information that you deem critical to conduct a good faith investigation without the ability to ask follow up questions. The potential risk to your organization’s bottom line with an inefficient hotline method is difficult to overstate.

Anonymity is derived from the Greek word "ανωνυμία," meaning without a name or name-less, and more originally meaning without law. In conversational use, the term typically refers to a person, whose personal identity or personal information is not revealed or not known. Anonymity sometimes clashes with the policies and procedures of private and public organizations. An “open door policy” can foster good communications between management and employees, but does little to address employee concerns about retaliation from either management or from fellow employees when misconduct is reported.

With the enactment of the Sarbanes Oxley Act of 2002, publicly held companies are required to establish procedures for the confidential, anonymous reporting by employees about issues or concerns regarding questionable accounting and auditing matters. This requirement for publicly traded companies has also been adopted by many forward-thinking private companies to enable effective reporting mechanisms designed to uncover inappropriate activity within the workplace – financial or otherwise. Why is anonymity important? Research indicates that 60% or more of all reported incidents would not have been brought forward without the ability for the reporting party to protect their identity and stay anonymous. Allowing the reporting party to report concerns about workplace misconduct without having to reveal their identity shields them from possible retaliation, extends an offer of trust between the company and the reporting party, and overall creates a better and safer workplace by bringing forward otherwise unknown concerns that can now be resolved.

Anonymous reporting may be viewed as ineffective, as some may presume that a good faith investigation cannot be done without knowing the identity of the reporting party. However, combining a robust reporting tool with an anonymous communication mechanism enables companies to ask questions and request additional information, and allows the reporting party to provide answers and clarification – all with the same protection of anonymity as in the initial report. Not only can the good faith investigation proceed, but this demonstration of trust by the company often leads to greater participation by the reporting party.

By allowing employees the option to remain anonymous, companies demonstrate trust and respect for their employees and prevent retaliation and recrimination against those who care enough about their company to raise concerns that otherwise can go unreported.

Domestic violence, also referred to as intimate partner violence, has long been considered a private issue, contained within the abuser and victim’s home, separate and hidden from the workplace. Many employers operate under the belief that what happens at home stays at home and that they have no business intruding on the private lives of their employees. Although this belief has been a common thread throughout the business world, studies show that the reality of domestic violence in the workplace is contrary to popular belief.

The American Institute on Domestic Violence reports that lost earnings and lost productivity, stemming from intimate partner violence, account for close to $1.8 billion yearly. Additionally:

• Victims of intimate partner violence lose approximately 8 million days of paid work each year

• 96% of victims reported experiencing problems at work due to abuse

• 74% are harassed by their abuser while at work

But the impact of domestic violence does not stop with the primary victim of the abuse. Coworkers often become responsible for picking up the slack, if and when an abuse victim’s performance declines. Fellow employees may also begin to experience fear and concern for the victim, as well as for their own safety. This fear can be distracting and ultimately lead to problems with overall job performance.

The pervasive effect that domestic violence can have on an organization has prompted numerous employers to adopt specific policies related to domestic violence, safety, and victim assistance. Many states have also implemented victims’ rights laws pertaining to domestic violence and employment rights. Companies should be knowledgeable about the legislation in their state and ensure, as appropriate, that it is incorporated into any new or existing policies. Workplace violence is a hot topic, but all too often domestic violence is overlooked or altogether ignored. Organizations that educate themselves and take a proactive approach to the growing presence of domestic violence in the workplace, are not only protecting their employees, they are also protecting the productivity and earnings of their business.