Any employer, regardless of size, reputation, or industry, can find itself embroiled in a claim of illegal discrimination. The headlines have been abuzz with news of high-profile organizations receiving substantial jury awards arising from employee complaints alleging discriminatory behavior. Such findings often have significant consequences for their financial health, reputation, and brand, both internally and externally.
The reality is that no organization is exempt. The decision to sue is highly personal and often emotional. Lawsuits frequently stem from an employee’s perception that they were not treated fairly. Employees determine whether they believe they have been treated fairly by comparing their treatment to that of others. Equity theory explains how employees' perceptions of fairness significantly affect many aspects of work. https://educationlibrary.org/equity-theory-definition-origins-components-and-examples/
Factors leading to claims of discrimination:
Policy Failure: When organizations either neglect to follow their own policies or apply them inconsistently, they can foster perceptions of unfairness in the workplace.
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Review policies and procedures regularly to ensure that they comply with current legislation.
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Communicate and train employees, supervisors, and managers not only on the content of policies, but also on the intention behind the policy.
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Periodically review policies, seek feedback, and audit where appropriate to verify that policies are being applied consistently.
Procrastination in Internal Investigations: When employees raise concerns or file complaints, a prompt investigation is critical. Failing to investigate complaints promptly sends the message that employee concerns are not always taken seriously and that misconduct may go unaddressed. This reinforces perceptions of unfairness and increases the likelihood that employees view the work environment as unfair.
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Consistently investigate employee complaints promptly. Every situation may not require an in-depth investigation, but it should always result in establishing the facts.
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To build trust in your response to a complaint, consider hiring an external workplace investigator. This helps ensure the integrity of the investigation and the sense of impartiality. See our article on choosing a workplace investigator here.
Poorly addressed performance issues: Failure to establish clear performance expectations, provide clear feedback, and provide an opportunity to correct performance issues is a top reason employees may perceive unfairness. When employees are unclear about what’s expected and how to meet those expectations, it can lead to confusion and negatively impact performance. In addition, when expectations are unclear, an assigned task may be misinterpreted as a punishment or penalty for something beyond the employee’s control, such as a protected characteristic.
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Communicate expectations and goals early and often with employees. When possible, make this a collaborative effort that increases employee buy-in.
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Document expectations – what is to be done and by when – so there is clarity, and update the documentation as expectations evolve.
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Provide consistent, actionable feedback about expectations. See the whitepaper Corrective Feedback Discussions.
Discrimination claims take a heavy toll on the organization and its employees. By proactively creating a culture of trust, respect, and inclusion, employers can reduce the risk of discrimination and increase employee engagement. Regular review of policies, establishing and communicating clear performance and behavioral expectations, clear reporting channels, and investigation procedures to address complaints are all key components of a healthy workplace.
Every employer is responsible for implementing fair, compliant, and inclusive practices – and we can help you put those safeguards in place. From policy reviews, employee and manager training to process audits and documentation strategies, the Employers Council team works with you to reduce risk and build an exceptional workplace. For additional information, contact our Member Experience team at info@employerscouncil.org.
Valorie Waldon is a Human Resources Professional and Director of Member and Information Services with Employers Council