Corporate Compliance: Invest in 3 Tools to Reduce Lawsuits

Lawsuits can be very expensive…both in terms of reputation and dollar amounts. Can we agree that they are to be avoided at all costs? Just as timely house repairs are good investments to protect against the high costs of deferred maintenance, so, too, investing in corporate compliance training is one of the best ways to prevent potentially disastrous lawsuits.

There are basically three keys to sound corporate compliance: effective policies, consistency in practice and accurate documentation.

1. Policies
Every business organization, no matter how small, should have written corporate compliance policies that govern fairness and legal regulations in the workplace. The compliance policies should be clear to every employee and they should be regularly updated to include any changes in government regulations. 

But it is not enough to have a published corporate compliance handbook. Managers, especially, should be trained in how to implement the policies so that they treat employees equally according to the law. This means in hiring practices, in applying performance management discipline, in handling charges of harassment, in guarding and responding to reports of discrimination of any kind including disability, and in dealing with claims of retaliation, unfair termination or defamation of character following termination. It’s a long list and a huge responsibility for managers. Give them the support and compliance training they need to handle threatening situations effectively.

2. Consistency
Managers are your front line defense against employee-related lawsuits and can often defuse a situation before it escalates to the stage requiring HR intervention or professional legal advice. They need to implement policies with a fair and even hand. They must show respect for each and every employee. They need to exhibit mature and responsible behavior even under stress. This is their job as a leader. 

Give them the communication and emotional tools they need to be consistent in their work with their followers. Often, this means creating an open door policy and a trusting corporate culture whereby the manager is readily available to direct reports and communication is straightforward and, when necessary, protected. 

3. Documentation
Don’t neglect compliance training on how and when to document. Managers need to know how to maintain fair, accurate and non-biased records of employee performance and behavior. Managers’ documentation can act somewhat like today’s police body cameras that portray actual events and can make the difference between an organization winning or losing an employee-generated lawsuit. 

To avoid damaging lawsuits, educate all employees in how to maintain a respectful workplace and train your managers in how to treat their direct reports consistently, fairly and legally.

Learn more at: http://www.lsaglobal.com/corporate-compliance-training/