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|Mess Management: Mundane issues can break your business|
After more than 35 years in what I call “mess management,” I’ve learned that human resources is often a major headache for businesses, and sometimes it’s a business-killing disaster.
Employee management can be extremely rewarding. A well-run organization with management and workers invested in their jobs is more than a way to make money—it’s a shared success that benefits everyone involved. Unfortunately, there is an almost unlimited number of potential pitfalls, including many that can bankrupt a company, or worse.
Recent tragedies like the workplace shooting in Washington, D.C., remind me that employers are expected to provide as safe an environment as is reasonably possible. The government, whether the State Human Rights Commission or the federal Department of Labor, has set standards that basically say, “You cannot do too much to protect employees.”
You can do too little, and there will be serious financial consequences, but you cannot do too much to protect your employees. OSHA and Worker’s Compensation were set up to protect employees with regard to physical injuries. The Civil Rights Act of ‘64 has a serious focus on sexual harassment. The Fair Labor Standards Act focuses on protection relating to payroll matters. All of these, and more, exist to hold employers accountable for protecting workers.
What the average employer often doesn’t realize is that the government has the philosophy that if employers cannot provide for the safety of their employees, they should not be employers.
The fines are telling. In sexual harassment cases, if there is an allegation that is brought to the attention of the state human rights commission, it will perform an investigation. If that investigation proves the allegation to be correct, the commission can fine the employer organization up to 25 percent of the company’s net worth! That’s right—up to 25 percent of the net worth of the organization.
Then there is the restitution or remedy to the victim, followed by the Right to Sue letter they issue to the victim, and then the court and attorney costs. Can you say “bankrupt?” These costs can easily bankrupt the typical small business, and that’s the objective. The government’s perspective is that if you cannot provide a safe environment, an environment free from sexual harassment, you shouldn’t be in business.
The fines and subsequent costs for other violations of the various laws and rules are not quite so fatal, but are designed to make it clear that employers better not mess with their employees. Employers should create a safe environment for their employees—period.
Steve Cohen is president/partner of Labor Management Advisory Group Inc., and HR Solutions: On-Call. He has more than 35 years of specialized experience solving HR problems in companies of all sizes. He recently wrote "Mess Management: Lessons from a Corporate Hit Man." He'll be providing insight on HR topics every month exclusively for KCBCentral.