Sexual harassment is flatly illegal. Nonetheless, workers continue to report that it remains a serious problem. New Jersey businesses should take any complaint or allegation of sexual harassment seriously and discipline employees who harass their colleagues.
Sexual harassment has many negative effects on organizations, which our Paramus sexual harassment lawyer identifies below.
Reduced Employee Morale and Productivity
When workers experience or observe sexual harassment, they can experience stress and anxiety. They enjoy coming into work less and might even find ways to avoid work by calling in sick. Workers might also refuse to work overtime, which can leave critical tasks unfinished at the end of the day.
It is critical to realize that simply observing sexual harassment can reduce worker morale and productivity, even if a worker is not themselves a victim. Any worker who observes harassment can question whether the company values them. They also can reasonably fear that they, too, might be subject to future harassment.
Increased Turnover
Sexual harassment can also increase turnover at a company. One study found that women who experienced sexual harassment were 6.5 times more likely to leave their job than women who hadn’t. Employers will then have to spend more on recruitment and training replacements.
Damaged Reputation
A company’s reputation is one of its most important assets. One sexual harassment scandal can damage a company’s credibility, which can lead to:
- Difficulty finding new talent. Almost nobody wants to work at a company where harassment is pervasive. You could struggle to land top talent due to harassment allegations.
- Damaged reputation among consumers. Few consumers want to support a company that condones sexual harassment. Instead, consumers like to buy from companies that share their values, and equality and respect are key.
- Problems attracting new investors. Investors know that harassment will likely impact talent acquisition and reputation in the marketplace. Consequently, they might refuse to invest because they see your company as too risky.
Negative press can undermine your company’s medium- and long-term growth strategies. Even if upper management was completely unaware of the harassment, many people will assume you supported a culture that allowed harassment to flourish.
Legal Risks
A company can face punishing sexual harassment lawsuits. A company might be on the hook if a manager harassed a subordinate, or if the worker complained about the harassment and the company did not respond to the complaint appropriately.
For example, a worker might sexually harass a colleague. Although the harasser is not the boss, your company cannot sweep the allegations under the rug. Once the company is on notice, it must respond appropriately by investigating and disciplining employees.
Increased Costs
Having to pay a settlement or jury verdict for sexual harassment can cost a company millions of dollars. But there are other costs, including costs related to internal investigations and reputation management.
Contact an Experienced Paramus Sexual Harassment Lawyer
The Law Offices of Usmaan Sleemi can advise entrepreneurs and business owners on how to handle a sexual harassment allegation at their firm. Call us to speak in a private consultation.