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Expert Answers to Biz Questions

Listen in! Pick up some expert advice to a reader's question that we selected from CyberSchmooz.

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How Can Discrimination Ruin Your Business?

 

As you may know, federal law protects employees from discrimination in the workplace. With the help of discrimination lawyers, employees can find justice for themselves when the system does not seem to be efficient. You need to know their rules, so that these problems do not affect you. 

 

You should not base your hiring process on age, sex, race, or disability. On top of that, the EEOC – Equal Employment Opportunity Commission – enforces laws and makes sure that both applicants and employees receive equal opportunity for hiring, training, and promotion. As well as equal pay. 

 

If these laws are not respected within your business/company, things can quickly escalate, and your company will go down the drain. This is why you have to make sure that both you and your employees do not engage in discrimination within the workplace.

 

Here is exactly how discrimination can ruin a business!

 

The Morale of the Employees

The first aspect that will be affected once discrimination becomes common in your business is employee morale. 

 

When noticing discrimination, some employees may feel that their rewards, benefits, and promotions are not entirely related to their performance. As a result, they will stop giving their best and perform poorly.

 

Moreover, employee competition may also decrease, because they will think that the winners have already been decided, based on discrimination. In the end, you may even have to face employees leaving your business/company.

 

The Reputation of the Company

Keep in mind that we live in an age where everything is put online seconds after it happens. Before you know it, you may find your business tagged in a post discussing discrimination within the workplace.

 

You can’t stop your employees from talking about what happens at the workplace and is not related to their work activities. As a result, your company’s reputation will take a huge hit – and we’re not joking!

 

There have been companies that went bankrupt over alleged discrimination!

 

If employees talk about discrimination within your workplace, you may also find fewer people willing to apply for a job at your company. 

 

Complaints of Discrimination

If your employees have been discriminated, they have the right to file a complaint against your business/company with the EEOC. The institution will then examine your businesses’ practices – hiring, firing, job ads, promotions, benefits, etc. 

 

If your business is found guilty, the EEOC will then try – on behalf of the employee – to reach a settlement agreement. This agreement may imply promotion, back pay, reinstatement, and even hiring. 

 

On top of that, you may also have to deal with the court and attorney fees, as well as with punitive damages for mental anguish, monetary losses, or inconvenience.

 

The Lawsuits

If your business is found guilty of discrimination and there’s no agreement reached, the EEOC may file a federal lawsuit against your company. If their case is dismissed, then the employee can do the same thing and file a personal lawsuit.

 

Such lawsuits can take a long time to settle/end and can drain your company’s funds quite quickly, especially if you are not paying attention.

 

The Bottom Line

For example, if you’ve just started your business and are charged with discrimination, likely, you will soon be on your way to bankruptcy. 

 

This is because such a charge also comes with a bad reputation and poor employee morale. In short, once you are suspected of discrimination, you either fix the issue as soon as possible or deal with the consequences.

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