A good culture within the workplace produces a variety of benefits which are seen by both the company and the employee. Organisations are continually striving to improve their workplace culture and individuals consider culture as a key factor in determining their next role. This article looks at the importance of a good culture within the workplace for employers and some tips on how to improve it.
Bad culture breeds bad behaviour. If employees are allowed to treat other employees wrongly then this will almost certainly lead to costly Employment Tribunal claims or high staff turnover or both. If an employee is the subject of discrimination or is treated so poorly that they have no option other than to resign, then their potential claims may be clear-cut. However, there are claims which may seem less direct but still ultimately result in the risk of a legal claim.
There are ways of minimising these risks and engendering a positive workplace. One example of this is consistency of treatment. Not only is this a fair approach to managing colleagues but section 98(4)(b) of the Employment Rights Act 1996 imposes a duty on employers to deal with similar conduct in a similar way. If an employer allows an employee’s misconduct to go unpunished but later dismisses an employee for similar circumstances, this may render the dismissal unfair due to the inconsistency of the employer. Furthermore, inconsistent treatment can lead to risks of discrimination where the employee who is treated differently possesses a protected characteristic (under the Equality Act 2010).
Vicarious liability is the liability of an employer for the actions of their employees. Failing to produce a good culture within an organisation will ultimately result in both time-consuming and expensive Employment Tribunal claims. Employee’s will be aware that, generally speaking, employers have deeper pockets than individuals and thus would have a better chance of obtaining compensation for their claim (although it should be noted that there can be more than one Respondent to a claim).
Having a good culture helps you to retain key and high performing employees. Companies will usually benefit from an increase in productivity. Additionally, a high turnover in staff will mean that organisations will have to go through the expensive and time-consuming recruitment processes.
It is clearly important to get the culture right within your organisation. These are some tips to help ensure you maintain a good culture in the workplace:
- Your company should have core values that represent the company correctly. They should be actively followed by all employees;
- Additionally, new hires should be informed of and commit to the company’s core values when you are recruiting;
- You should have clear policies in place that hold employees accountable for their bad behaviour;
- There should be clear examples of misconduct within the employment contract which allows the company to use as an example of a contractual breach when taking disciplinary action against the employee.
Overall, a bad culture within the workplace will inevitably increase both the legal and commercial risk for employers. Organisations who invest now will reap long-term benefits.
If you would like more information on maintaining a good culture at your organisation, or preventing a toxic culture spreading, feel free to get in touch with the team.
Jones Chase is a specialist employment law firm based in the centre of London with an excellent track record of looking after those that we assist.
Do contact us should you require further information or need any assistance. We are always happy to speak to people and point them in the right direction.