Preventing EPL claims takes planning, commitment
Our industry now needs to look closer at sexual harassment policies as well as other contemporary employment issues.
As claims of sexual harassment continue to make news in the entertainment industry, government and corporate America, there is a movement underway to re-examine the topic.
In the insurance industry, it has brought a renewed focus on the longstanding problem of employers facing allegations of sexual misconduct in the workplace, which many years ago was the genesis of Employment Practices Liability coverage.
With the benefit of experience, we know that Employment Practices Liability insurance today covers a myriad of causes of loss that were not contemplated more than 20 years ago.
Now, we need to look closer not only at sexual harassment, which clearly remains a serious problem, but other employment issues. We must ask ourselves: how do we adequately address the many employment practices risks that employers face?
Differences collide in the workplace
The workplace has changed a great deal since the inception of Employment Practices Liability (EPL) insurance coverage. It is much more diverse than ever before and our cultural, religious and political differences continue to collide and cause conflict.
How can employers respond? Begin by going beyond the usual methods of employment risk management. Merely putting together a handbook around expected behaviors is no longer sufficient for employers to prevent employment practices claims.
Today, employers need to dive deeply into their culture. What does it mean to work at your company? How do you define diversity and inclusion? Is there a plan to promote these values within the organization? Is the plan communicated, maintained and the results measured?
The best employment policies are fluid and continue to evolve, so it is important for employers to monitor progress on diversity and inclusion.
Attract, promote and keep diverse talent
Handbooks and training designed to help prevent harassment and discrimination are still important, and this type of risk management training needs to continue.
Equally important, however, is effective policy making and training around diversity and inclusion strategies. These policies must be sustainable and demonstrate a commitment to action.
Organizations should recognize that their talent pools have employees with varied backgrounds and beliefs, and seek to build a diverse workforce at all levels.
An effective diversity and inclusion strategy has a focus on not only obtaining diverse talent, but retaining it. Employees should be trained on what constitutes an inclusive work environment, and it should be part of the daily norm of the organization’s core values and beliefs.
Diversity and inclusion must be part of your daily process, from corporate communication, to the values demonstrated by senior leadership teams. Even in the level of accountability you hold managers to when evaluating how they hire, train and retain employees.
How do you measure success?
Organizations can measure success by reaching into their ranks for employee engagement surveys, which can give valuable feedback on how individuals perceive the culture in their workplace. This information offers actionable feedback employers can use to create engagement strategies.
As mentioned earlier, these policies are fluid and strategies will evolve over time. However, allowing employees a forum for discussion on policies, practices, and ways to foster involvement will benefit any employee seeking to enhance their workplace.
Your employees bring their best to work
The recent rise in sexual harassment claims reminds us that EPL matters never “go away.”
Although the specific causes of loss ebb and flow over the years, we know at the core that discrimination issues form the basis of many EPL complaints.
As we see a spike in discrimination claims related to race, LGBT rights, religion and disability, some of these complaints could be prevented or mitigated by empowering a diverse workforce. Leveraging employee differences means valuing the individual qualities that make us all unique.
That is why diversity and inclusion are central to effective EPL risk management strategies.
With a fresh view of risk management, employers can encourage collaboration and productive dialogue. A clear approach to fostering diversity and inclusion can shape a workplace culture that empowers employees to bring their best to work.
Todd Cincotta is vice president, strategic products, at The Hartford Steam Boiler Inspection and Insurance Company. Todd has extensive marketing, underwriting, and product management/development experience in the specialty liability arena. He is frequent speaker and panelist on Employment Practices Liability Insurance and related employment issues.
To reach this author, send email to todd.cincotta@hsb.com. The opinions expressed here are the author’s own.
Related:
10 ways to protect against sexual harassment in the workplace