3 Signs Your Organization is at Risk of Liability

Workplace misconduct may seem to come out of nowhere, but in reality, there are signs of risk that all employers should be aware of. Not only will understanding the signs support a safer, healthier work environment, but it also may save you the cost of settling a workplace claim that could have otherwise been avoided. Employers can be at risk of losing approximately $75,000 to $125,000. Of course, the cost of harassment in the workplace can increase depending on the ruling, and employers may be looking at upwards of $250,000 in compensation. Also, the cost in productivity has proven to be substantial, with workplace sexual harassment costing $2.6 billion in lost productivity within just one year.

To proactively manage risk, here are three signs your organization is at risk of liability.

  1. Toxic Work Culture

Workplace culture extends beyond employees getting along. It is the foundation of the environment that teams show up to every day, and it carries great weight. In fact, 94% of executives agree that a distinct workplace culture is crucial to an organization’s success. Additionally, 46% of job seekers say that company culture is “very important” when deciding to apply for a role with a certain organization. A few examples of how a toxic environment leads to risk of liability are lack of accountability, poor behavior from leadership and no efforts to create an inclusive workplace.

  1. Lack of Clear Values and Mission

Workplace values and mission statements are more than just words on a company website, they serve as the core of an organization. Also, they are the foundation to any business strategy, which is the guiding light in staying focused and on track to reach goals and outcomes. When an organization fails to clearly define values and mission statements, they are less able to hold employees accountable, as there are no defined boundaries within the organization. While certain behaviors are blatantly toxic, others may go unnoticed if values aren’t clearly defined. 

  1. No Reporting Process in Place

The most crucial factor that an organization is at risk of liability is the lack of a third-party reporting system where all employees feel safe to report workplace misconduct. An effective platform should be easily accessible to all, provide real-time data, possess proper tracking and monitoring, and allow for both anonymous and non-anonymous reporting. Investigations should be conducted by an impartial third-party efficiently and effectively, and both the employer and the employee should have visibility into an investigation’s status, which builds trust and accountability. Overall, implementing a full misconduct solution is key to reducing risk in the workplace.

With Work Shield’s third-party misconduct solution, employers can gain peace of mind that their organization is not at risk of liability. The cost of harassment impacts more than the bottom line. It affects turnover, trust, culture and more. Calculate your potential ROI of partnering with Work Shield by using our ROI calculator. It’s time to mitigate risk and effectively resolve misconduct.


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