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Even when you proactively anticipate all the people risks that have the potential to impact your workplace, it’s easy to convince yourself there is no risk to youthat it will never happen here.

You may think no one at your workplace will harass anyone, no one will sue you over an honest mistake made in administering workers’ comp, no one will accidentally cause a data breach, or no one will ever bring a weapon to the office. You might think managing people risk is extremely time consuming and not worth the effort. Rationalizations like this may lead you to believe you don’t need to do anything to prevent these risks.

However, these risks are very real and can happen anywhere, at any time. It’s imperative you cover all of your bases, and it’s actually very straightforward, especially if you have a partner on your side.

Ideally, you will integrate people risk management (PRM) with your business practices so it’s not something extra to do; it’s a way of doing things you already do. PRM can be a lens through which you look through when evaluating your policies, procedures, and other aspects of how you run your company.

Acknowledging and Preventing Risk: A Four-Step Plan

When you are anticipating risk, you are thinking about what might happen. Then you need to look at what you should do when something actually happens and it’s time to acknowledge the risk.

Maybe a law passes or regulation is finalized, you realize your pay policies are not in compliance with the law, or an employee informs you they have been prescribed medical marijuana but you have a very strict drug use policy. What tools to do you have to deal with that?

Once you acknowledge the risks inherent in these issues, there are four steps to putting a plan of action into place to prevent the risks from causing damage to your company’s bottom line, its reputation, or to its level of employee engagement:

  1. Understand when and how the risk will impact you. If it’s a law or regulation, when does it go into effect? Is it an ongoing issue or something that can be addressed and then set aside? What are the potential penalties or pitfalls presented by the risk?
  2. Determine the best course of action. Does the situation require simple changes to operations or a more complicated approach? Where do changes need to be implemented — in handbook policy updates, procedural documentation, or new training programs?
  3. Craft communication strategies around the risk. Who needs to know what, and how much information should be given to people at each level? What information should be held back to preserve confidentiality? What information is only relevant to a handful of people (such as when an OSHA report is due) and what information is relevant to everyone (such as who needs sexual harassment training in your state)?
  4. Decide what change management activities are required to get buy-in. It’s one thing to decide to do something but getting people ready to embrace the change is another thing. If change management is good, then the changes will take hold, the implementation will be smooth, and the risks will be lower.

 

by Larry Dunivan, CEO of ThinkHR
Originally posted on ThinkHR.com

Many human resources and business leaders think about compliance in black-and-white terms. We simply check the boxes and evaluate compliance efforts using one measure: “Are we doing it right or not?”

It’s easy to fall into the trap of failing to see the broader implications of our compliance efforts. We need to go beyond, “What’s the law and what should I do about it?” We need to ask questions like, “How does this law intersect with our culture?” or “What best practices will support this requirement?”  We need to understand that risk crosses our desks every day.

That’s where people risk management comes in. People risk management is simply the strategic and wholistic view of compliance. It’s really all about the end-to-end story; it’s how we deal with all the things that happen in the employee lifecycle in a way that minimizes risk while maximizing employee engagement.

It’s all about how we anticipate risk, reduce the likelihood of risk events, and deal with them when they do happen. The best companies proactively respond to risk in an ethical way that not just protects us from liability, but also builds trust and respect among the workforce.

People Risk Management: An Example

Let’s say a new sexual harassment law goes into effect in your state. This triggering event (the new law) is just part of the issue. You need to take a big-picture view of the entire situation. You’ll need to know what you should anticipate, what you need to do, and how to evaluate your efforts to make sure you’ve addressed every risk.

Because this law is related to how people behave, in addition to administrative requirements, it can be difficult to understand how to simultaneously address both the risk of harassment and the risk of failing to comply with each aspect of the law. You also need to incorporate your response to this issue into your company culture to demonstrate that you care about protecting not just the company, but also your employees.

When engagement and compliance issues intersect, and you do both well, you create a culture that says you deal with stuff in a clear way, but also you protect yourself from legal risks. It’s a double benefit.

 

by Larry Dunavin
Originally posted on ThinkHR.com

Are you having a hard time keeping up with the steady flow of news and information that affects your workplace? Let ThinkHR help! We’ve curated some of the stories from business, news, human resources, benefits, and risk management publications that caught our eye this June.

Just Don’t Ask

Job candidates are covered by the Civil Rights Act prohibiting discrimination, and most interviewers know what kinds of direct questions to avoid. But what seems like a friendly conversation-starter could be an unwitting violation of the act. Read five questions you should never ask.

Read more on Namel

Trust in Design

Office design is known to have an impact on employee productivity and satisfaction. At the heart of this is trust – trust that staff will choose to use the facility in the most effective way rather than be chained to their desks. And when trust rises, engagement follows.

Read more on Entrepreneur.

Pride Without Pandering

June was Pride Month, and corporations everywhere joined in the celebration. Some, although well-meaning, missed the mark. Seven LGBTQ executives explain how employers can embrace inclusion and celebrate diversity without coming across as pandering.

Read more on Fast Company.

Dad Days

Reddit cofounder Alexis Ohanian was a proponent of paternity leave and planned to lead by example by using his company’s benefit. However, he didn’t fully appreciate its importance until his daughter was born and he used the time off to slow down and take stock of his priorities.

Read more on CNN.

Culture Still Eats Strategy

Strategy is essential, but if a company doesn’t have a good culture, it won’t matter. Once you understand what culture is and isn’t, you can work toward developing a strong one, starting with defining the qualities you value in your employees.

Read more on Forbes.

Buy in Bulk

A rule released by the U.S. Department of Labor on June 19 loosens restrictions on association health plans, paving the way for more small businesses to band together to buy health coverage. That is, if it stands up to legal challenges, state laws, and the realities of the insurance marketplace.

Read more on Kaiser Health News.

The Family Friendly Workplace

Work-life balance can be especially challenging for parents. Both mothers and fathers lament not having enough time for their children. Get 10 creative ways you can make your workplace better for working parents.

Read more on Employee Benefit News.

Remote Control

The remote workforce continues to grow, but 57 percent of companies still lack a remote work policy. These companies may be missing out on attracting and retaining top talent. There’s no one-size-fits-all solution, with numerous factors to consider in crafting one.

Read more on HR Dive.

What Makes a Great Workplace

Inc. magazine surveyed thousands of employees to measure what employer qualities lead to high levels of employee engagement and sentiment, taking into account elements of corporate culture. See which of 45 perks and benefits employees value most.

Read more on Inc.

Run, Hide, Fight

Law enforcement officials stress the need for employers to conduct active shooter training to protect their employees and customers in the event of a violent incident. In addition to training, find out other ways to mitigate the risk a shooter or potential shooter holds.

Read more on Business Insurance.

By Rachel Sobel
Originally published by www.ThinkHR.com

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