Four Good Reasons to Out-source Workplace Harassment and Discrimination Prevention
1. These
are specialized areas full of legal booby-traps. The laws change often,
and understanding them requires a level of sophistication which can
only rarely be attained by general counsel or a Human Resources
generalist and at a cost
of attention to other critical responsibilities. Policies and
procedures require frequent review to ensure compliance with the laws.
2. There is always a discrimination or harassment claim waiting to be filed. The Small Business Administration reports that in 2003, there were 175,827 “employer firms” in Massachusetts. The Massachusetts Commission Against Discrimination reports that 3328 complaints of discrimination were filed in 2003. Rough calculations suggest that almost one in fifty employers incurred new discrimination litigation costs that year. Although no study shows what those employers pay for such litigation, one study suggests the following averages:
* Attorney fees if the case goes to trial $250,000
* Attorney fees if the case settles prior to trial $95,000
* Range of settlement costs or jury awards $150,000 to $250,000+
* Manager time expended in the claim process 40 hrs.
* Employee time expended in claim process 40 hrs.
* Employee time spent investigating the claim 60 hrs.
* Employee time spent preparing for trial 60 hrs.
For a very small fraction of the potential costs of litigation, problematic behavior can be controlled or prevented.
3. Liability for harassment or discrimination does not require bad intent. Even plausibly innocent behavior may prove to be legally offensive and give rise to unnecessary costs. An ounce of prevention is well worth it.
4. In
the final analysis, there is nothing more conducive to efficiency than
experience. Nothing focuses attention like the trenches.
Last modified 20060627 1657