News Now: Poor management practices can lead to lawsuits
Wednesday, June 14, 2017
Posted by: News Now (CUNA)
Ineffective or unskilled managers can cause you to lose your best talent, and present one of the biggest exposures to an employment practices liability lawsuit.
In fact, one in eight U.S. companies faces the prospect of having an employment charge filed against them each year, according to the insurance provider Hiscox.
Of the credit union claims filed with CUNA Mutual Group’s Management Professional Liability Policy, approximately 50% of all claim dollars relate to employment practices liability losses.
These losses often involve discrimination, harassment, and/or retaliation. Even with seasoned human resource (HR) professionals, up-to-date policies, and the latest workforce management technology, a poorly trained—or just plain bad—manager can negatively impact the credit union.
The impact reflects both financial and reputational risk.
Take these actions to avoid this loss trend:
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- Train managers on existing policies and expectations of behavior. Be specific when discussing discrimination, harassment, and anti-retaliation policies. Be extremely clear about what you consider acceptable and unacceptable behavior.
- Stress that the responsibility to comply with these policies extends beyond the branch office environment and includes off-site meetings, training, and celebrations. Communicate to managers that the credit union doesn’t tolerate retaliatory conduct based on an employee’s complaint of discrimination or harassment, as well as participation in any investigatory proceedings.
- Apply policies consistently among all employees. Preferential treatment or inconsistencies can make for a devastating discrimination argument against your credit union. Make sure a manager doesn’t recommend termination for one employee, where he or she might only have issued a verbal warning to another.