Culture vs. discrimination in the workplace

“Employee turnover at all-time highs”

“Lowest Unemployment Rates in 18 years”

Do these headliners sound familiar? They should, as they have dominated the business news journals and human resources forums for the past year. The facts behind these headlines, though, are a reflection of the challenges that all employers are experiencing in their ability to attract and retain employees; unemployment continues to dance around a record-low 4 percent, and employee turnover is 35 percent more than previous generations.

The converging forces of a tight labor market and generational influences have left the challenge of competing for candidates keeping HR departments up at night. Savvy employers know that they need to change their strategies in order to be considered as an Employer of Choice. The tactic of offering only a competitive compensation and comprehensive benefit package is outdated. The candidates are now driving the interview, asking, “Why should I work here?”

Related: The C-Suite eyes a larger role in talent acquisition

Employers need to show how they are preferable to their competitors by offering access to innovation, teamwork, career progression, well-being, and leading technologies. Today’s workplace culture has become all about ensuring that employees are supported holistically. It has become the prime determinant in attracting and retaining employees.

Failure of an employer to promote the need for a conducive work environment can result in turnover as today’s employees are quicker than to move on to that next job. Many employees are lost at the two-year mark as job dissatisfaction sets in. This inevitably costs employers in loss productivity, increased recruiting fees, and constant turnover. Turnover costs are particularly significant. On average, turnover costs an employer six-to-nine months’ salary, which can equate to approximately 20 percent of a worker’s salary. Employers can ill afford to have a revolving door policy.

Discrimination continues

With employers are having to reinvent their HR philosophy in order to thrive, we continue to see equally hard-hitting headlines out of the Equal Employment Opportunity Commission (EEOC) about employees complaining of discrimination and harassment in the workplace.

Even with threats of lawsuits, potential personal liability for supervisors and even HR, and litigation awards, these are not always the deterrents needed to encourage employers to act in the best interests of their employees’ well-being.

As a result, employers should consider the impact of discrimination in the workplace. Discrimination takes its toll on affected employees, and its effects reach way beyond the individual being harassed. Discrimination in the workplace has been proven to also affect:

• Employee retention, including not only in those directly affected, but also those surrounding the person impacted
• Employee recruitment, as the ability to recruit new employees is harmed as word about such issues spreads
• Medical costs, resulting in higher charges for both physical and medical issues experienced by workers, including depression and stress
• Productivity, which is likely to decrease due to a lack of focus on production and employee turnover

All of those impacts are obviously counter-intuitive to the kind of culture today’s candidates are seeking.

Company image

In today’s social-media society, word spreads quickly and quite publicly when an employee is dissatisfied, and an employer can do little to stop the wildfire that can be created. When employees leaves work, they go into the far and wide community, sharing their stories whether they are good or bad. What story are they sharing about your company? This can determine who shows up — or fails to show up — at the next hiring round. Employers should review their standing in the community. Is it a positive image? A positive image is essential to successful recruiting and retention of quality employees.

Employers who discriminate should stop, not just because it is illegal, but because it is a bad for business. Employers of Choice recognize that employees are an integral part of the company, necessary for the survival of a business. Employers should review their culture and their turnover with a critical eye, and question if their business practices toward the treatment of employees are in alignment holistically with the emotional, social, financial, and physical well-being of both the employee and the company. The answer may surprise you.

Read more: 

• Age discrimination issues in hiring and recruitment
• AI, machine learning bring risk of discrimination and bias
• Personalized support from employers enhances employee retention

Bobbi Kloss (bkloss@benefitadvisorsnetwork.com) is the director of human capital management services for the Benefit Advisors Network, a national network of independent employee benefit brokerage and consulting companies.