We laid out several more rules, but the point of the change was to allow the sexuality of all our team members to shine through.

It took about a week for the new culture sunk in, but my, did things change.

Our female employees started wearing low-cut tops and short skirts. Our male employees shed their ties, unbuttoned their shirts and used product in what little hair they had left on their heads.

But Carl, our 23-year-old producer, wasn't going with the flow. He stayed in his office with his door shut. 

As the HR manager, I noticed this and asked Carl out to lunch to talk about his bad attitude toward our new initiative. 

At lunch, Carl opened up. “Mr. Thompson, I don't like this new culture. The employees touch me on my shoulders and arms. I feel like a sex toy. And Maggie has a picture of herself topless on a beach from last year's vacation as her screen saver.”

We decided Carl was not a good fit with our new culture. When Carl and I returned to the office, he cleaned out his things and gave me his notice.

Sexual harassment still a risk

In case you haven't guessed, the events you just read in this extreme example aren't real. What is real, however, is that sexual harassment is alive and well in our offices today.

Sexual harassment or a sexual environment cannot be tolerated in today's workplace. The instant access of today's connected world has allowed for all things to be readily available to our staff, including inappropriate jokes, articles and photos.

Related: Read “Professional Liablity Trends“

Think back 10 years ago to when EPLI was the hot coverage. How much time did you spend with your staff and clients discussing sexual harassment and working through the warning signs and consequences of poor decisions in an office environment?

Today, it seems that most carriers routinely throw EPLI coverage into their BOP or package forms at a minimal level. Our industry has moved on to focus on the threats of such things like cyber liability and identity theft.

In reality, the risk of a sexual incident has never been higher. I am astounded at the behavior of some of the offices and manufacturing companies I prospect. Clearly, their current insurance provider has not visited with them about this topic for some time, perhaps rationalizing that now that they have coverage, the point is moot.

My partner and I were talking the other day about her previous job selling equipment. One of her clients had offered her Indianapolis Colts tickets with the caveat that she attend the game with the owner of the tickets. “You know, you could sell a lot more here if you got more active with some of the staff,” he said. She declined the offer, went directly to the manager and the employee was fired.

In my partner's previous insurance agency, one of her customer service agents was continually getting extra attention from one of her field reps. After months of innuendo and advances, the employee told management about the situation. Management took a strong stance and the rep was removed from the agency. 

If the agency hadn't responded promptly to the situation, the employee could have had a case against the agency and the carrier for their lack of action.

One of my friends who owns a very progressive advertising firm found out that mixing business and pleasure can cause major headaches.

About 6 months ago, the firm held a retreat where folks from all over the country came to a centralized location and spent the day collaborating on team-building activities. 

Related Read “Add Play to Work“

At night, dinner was served and so was alcohol. The outcome was two of the firm's top sales people connected in a “nonprofessional” way. The fallout was tragic. Both employees soon left the company, leaving a void in the owner's sales team. 

“Mark” owns a software development firm. His employees occasionally travel together to job sites and spend weeks at a time doing on-site work, heading home to see their families on the weekends. 

During a recent site visit, two of Mark's employees began a relationship that ended up causing havoc in the office when the “couple” returned. 

These examples push the boundaries of sexual harassment and lean more toward personal choice, but the environment in both firms prior to the events was an “anything goes” atmosphere. I can't help but think this free-wheeling attitude helped lead to the poor decision making of the employees who engaged in bad behavior.

Establish Protocol

As owners and managers, we are responsible for continually reinforcing a workplace of zero tolerance when it comes to overt personal connections. Keeping the conversation alive about the downsides of poor decisions in the workplace might just help avert some of the issues my friends experienced at their firms.

Related: Read “Leaving the Nest“

As an owner or manager of an agency, this is a subtle reminder that most people do not want to be harassed. Even the slightest irreverence can be taken out of context and open your agency up for a lawsuit. 

If you have not addressed this topic lately, share this article with your staff. Show them the absurdity of this fake agency and then have a meeting to discuss and describe your culture. 

Remind folks that your office is a professional environment, repeat the ground rules for what is and is not acceptable, and remind them that if a line is crossed, they will be subject to a three-step disciplinary protocol: 

1. The offending employee receives a verbal warning if any and all sexually related jokes, stories and nuisance are observed at the company.
2. Upon a second offense, a written warning outlining the offense with the signature of the employee is put in the employee's personal file.
3. Upon the third offense, the employee is terminated.

Have the meeting and remind employees of the process. Sexual harassment or a sexual culture cannot be tolerated in your work universe.