Recent headlines have many of us shaking our heads in dismay. How could such well established organizations find themselves involved in such public relations nightmares? We all understand that no organization is immune to lapses in employee judgment. Successful leaders, however, recognize what is at stake and are willing to invest in proactive measures to minimize risk.
First, it is important to understand exactly what is at stake. In today’s world of instant communication, typically anything that goes wrong goes public in a matter of moments not only on a local level, but national and global as well. For publically held organizations, stock values can be subject to dramatic declines leveling off only after the attention wanes. Unfortunately, the damage is already done and can cause some investors to shy away permanently.
Second, your reputation is on the line. Even if your business is a locally owned and operated company, people express their opinions via their purchasing power. Larger organizations may fare better, weathering a downturn in sales across the long run. Smaller organizations, however, have a much shorter timeframe before their losses translate into a long-term win for the competition.
Third, your name is your brand and your brand translates to your employees’ identities. Top talent most likely does not want to tie their reputation to an organization reeling from poor choices. In this case, an organization not only risks the internal loss of their best, but can struggle to attract new high performing talent to fill empty roles.
Three Best Practices for Risk Management
1.) Align your corporate culture. It is not enough to craft an outstanding corporate culture summary and mission statement if your employees don’t consistently engage these expectations. Begin by conducting employee surveys that will help you uncover problem areas and inconsistencies before they become an issue. From onboarding to exit interviews, surveys can help organizations understand what they are doing right as well as wrong. Such diagnostics creates solutions based approaches that re-direct negative behaviors before they become part of the culture.
2.) Train your employees. Establishing corporate values and expectations should be clear and consistent. From proper orientation processes, annual awareness training, to communication techniques, if it is important to your organization’s welfare it is worth repeating. Don’t assume your employees know how best to handle a situation. Give them the tools and support they need to make the right decisions each and every time.
3.) Create strong leaders. Your leadership team must set the example and be willing to invest in the growth and development of their people. Leaders who are trained to value the success of their team engage trust and integrity. Strong leaders know that loyalty is not just a two-way street, but one that widens to include valuing your customers as well.
Proactively investing in your employees can have you endorsing rather than distancing yourself from their actions. Conducting surveys, implementing training programs, and developing your leadership need not overwhelm your present HR department. Outsourcing options can help you design the programs that best fit the needs of your organization on a timeline that works for you. Reach out to one of our HR experts to see how we can get you started.
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