Work Place Discrimination. What Does it Cost?
What is the cost of discrimination in the work place? Initially, there's the "morale cost." If employees, especially good employees, see unfair favoritism or negative treatment, that employee's willingness to be all-in is going to deteriorate. Most employees will see when their peers are upset or aggravated by such treatment and more often than not, employees will stick together against "The Employer." Now all of the work force is less interested in doing job. "Why bother, dedication and effort don't count!" When employees no longer have a stake in their work, the level of service begins to slip. In this day and age, when customers have so many options, bad service is a death knell for an ongoing relationship. Fewer goods and services sold, less profit on the bottom line. If one of those unhappy employees complains, the employer must dedicate scarce resources (and attorney fees) to responding. Again, less profit on the bottom line.
That seems like it should be so easy to understand. Apparently, it isn't.
This week, the EEOC announced new lawsuits against employers as diverse as hair cutters, grocery stores, dental offices, and other manufacturers. The claims included discrimination and retaliation. The EEOC also announced settlements in many pending cases. The economic cost of the various suits and settlements? In the millions.
"If you are an employer, ask yourself this," says Diane Smith of Burg Simpson. "If the bottom line is profits, aren't your interests best served by a work force that is treated fairly and in an even handed manner?" So pay attention and take care of your bad employees - whether at the entry level or the management level. Failure to do so will get you sued.
