Nobody’s perfect, and neither is any workplace. Every employer will likely field occasional employee complaints about inappropriate behavior or concerns about something that doesn’t seem quite right.
When a complaint or concern arises, think of it as an opportunity to test your organization’s employment policies and procedures. Handling it well can strengthen your work environment and employer brand. Handling it poorly may undermine employees’ trust and even result in financial exposure.
Deciding whether to investigate
When an employee raises an issue, employers must first evaluate whether it warrants a formal investigation under organizational policy or the law. Train supervisors, managers and human resources (HR) staff to do so and never ignore a complaint or concern.
Various federal laws require employers to immediately investigate complaints of discrimination or harassment. These include:
- Title VII of the Civil Rights Act,
- The Americans With Disabilities Act, and
- The Age Discrimination in Employment Act.
Some concerns may have relatively simple explanations and can be resolved with a conversation. Others might signal fraud. When investigating potential fraud, work with your attorney and an outside forensic accountant. Take care when interviewing personnel and gathering evidence to protect the chain of custody and ensure findings are legally admissible.
Other types of concerns may arise as well — for example, safety violations under the Occupational Safety and Health Act or payroll problems under the Fair Labor Standards Act (or similar state laws). Even if not legally required, an investigation may be necessary if your organization’s employee handbook or posted HR policies commit you to follow up in a prescribed manner.
Laying the groundwork
Should you decide to pursue an investigation, plan it carefully. Start by determining whether it will be internal or external. One of your staffers may be qualified to lead an internal investigation — but only so long as the individual is well trained and unbiased. For more complex and serious issues, engaging an external investigator is generally recommended.
Also, clarify the investigation’s scope. Identify which policies or laws are applicable to the allegations. In addition, pinpoint what types of evidence you’ll likely need.
Collecting information
Most workplace investigations center on face-to-face interviews. Your investigator will probably want to start with the employee who made the complaint or raised the concern and then move on to the accused (in the case of a complaint), witnesses and other persons of interest. Train anyone in your organization who’ll participate in internal investigations to ask open-ended questions, actively listen and maintain strict confidentiality.
Whether internal or external, investigators should obtain other types of evidence as they’re available. Electronic communications between pertinent parties, security footage and financial records can prove invaluable to substantiating interview findings.
Ultimately, ask each investigator to write a formal report that summarizes the investigative process and objectively presents the findings. Use the report to determine whether the allegations are substantiated, to decide on appropriate action and to serve as legal documentation.
Reaching a decision
Based on the investigator’s report and further discussion, qualified members of leadership should decide how to proceed. Don’t hesitate to consult legal counsel as well.
Unlike a criminal court, your organization needn’t prove beyond a reasonable doubt that wrongdoing occurred. If it’s reasonably likely that an employee misbehaved or grossly underperformed, your organization can still take proportionate action. However, if you decide to terminate the individual, you’ll need a sound rationale and well-documented evidence to minimize legal risks.
Communicate your decision carefully to the parties involved. Generally, complainants aren’t entitled to know exactly how employers handle a substantiated allegation. But organizations may choose to provide more information.
Above all, demonstrate that you’ve protected everyone’s privacy while actively addressing the complaint or concern. If your response involves disciplinary consequences or performance improvement measures, be sure they’re consistent with your stated policies and proportional to the specifics of the case.
Protecting your organization
The stakes of workplace investigations are high. Employers who fail to handle them properly face serious risks, such as higher turnover, reputational harm, and increased insurance and legal costs.
Work with your attorney to continuously improve your organization’s employment policies and procedures. Meanwhile, if you need assistance investigating potential misconduct or improving internal controls and financial documentation, our team can help you build processes that protect your organization and withstand scrutiny.
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