Professional Liability Insurance Group 3Q 2019

The PLIG Professional’s PULSE

3rd Quarter

Managing Employees Effectively Without Any Risk of Discrimination Suits

Hiring employees always comes with the risk of a discrimination suit. Even if you cover all of your bases, many groups can declare your management discriminatory, and there are so many actions that can lead to a suit being filed against you: promotions, pay raises, handing out key projects, and even firings, among many others. This can make it challenging for managers to know how to manage employees, so they will sometimes take actions that are against the business’s best interest in order to avoid a discrimination suit. Here are some effective ways to manage employees to reduce the risk of a discrimination suit. 1. Remove Identification From Recruitment Numerous “secret shopper” tests from around the world have found that even a name can create a bias in the recruitment process, and this has led to some discrimination claims against businesses. A simple solution for this is to have HR or another administrator label CVs with an application number and remove the name.The hiring manager receives the skills and experience of the candidate to assist in making a decision rather than personal details. Other specific details can also be omitted from the CV to avoid discrimination claims. 2. Keep Accurate Records One of the best ways to protect your business from discrimination suits is to keep detailed records.This should include productivity, sick leave, and other metrics that can be used to make any informed decisions. Then, when decisions are made, you can provide a fact-based reason why you made that decision. For instance, for a promotion, you can say one employee has double the productivity of the other. 3. Ask for Help There are a lot of third-party consultants that can help your business make employee decisions.These people are often not emotionally attached to employees, so they will make a fair judgment.The expense of outside help can be much more cost-effective than defending your company from a discrimination suit.

In addition, third-party consultations can offer you insights into your employees that you might have missed.They are trained and experienced in analysis skills that you and your management team may lack. 4. Have Insurance While insurance won’t stop discrimination suits made against your organization, they are useful at minimizing the risk to your business should one be made. Always speak to a broker about what is best for your business. Conclusion There are serious risks when it comes to potential discrimination claims made against your business. By being proactive, you can protect your business from the financial damage caused by such a suit. If you would like to know more about protecting your business from a discrimination claim or another claim, contact us for more information. -Shayne


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