Discrimination is an issue that touches nearly every workplace and can’t be overlooked. If you don’t plan and train carefully troubles can quickly build up. These are the top ways discrimination can affect the workplace and why it’s important to pay attention to how everyone within the company treats employees.
Lawsuits happening in higher frequency
If you ignore your employees or aid in discrimination you will quickly see lawsuits popping up. Employees can sue over anything from being fired unfairly to being harassed and ignored at work. If you don’t listen to your employees and correct poor behaviour when it happens, your employees may seek legal action.
Investors may leave and stock will drop
In 2021 after several discrimination cases came out against Blizzard, a video game company, the stocks took a major hit. Investors felt betrayed by this, saying that the company should have done more to take care of its employees, and a class action lawsuit has been brought against the company. Poor business decisions, like ignoring discrimination, hurt everyone, and the cases you face from discrimination won’t just be from those who are experiencing the discrimination.
Although not every discrimination case results in multiple other cases, this is a trend on an upward slope that you don’t want to ignore.
Higher turnover and lower hiring rates
Your employees may lose faith in your company. This could lead to many quickly quitting soon after they’re hired, or others who have worked with the company leaving despite being loyal to the company until this point. This can soon lead to high turnover rates and eventually problems hiring anyone once word of mouth gets around.
People don’t want to work for companies that don’t see them as human beings and would rather find a company that suits their needs. The fewer applicants you get, the harder it is to find employees that suit your needs.
Public opinion of the company changes
Public opinion of your company matters because it’s what helps your customers decide whether or not to buy from your business. A negative public opinion of your company can stigmatise it and leave many shoppers seeking out companies that align more with their morals. Public opinion can also lower the hiring rates even more since those looking for work won’t want to apply to a company – or tie their name to one – that doesn’t do them any favours.
Productivity and quality fail
If your business keeps having high turnover and can’t get the best applicants possible, many economic consulting firms predict that this will eventually hurt your company’s quality and productivity. The more your quality dips and falls, the fewer purchases your customers will make, which kills your profit.
This is a cycle that circles in on itself if you ignore discrimination within the workplace. Discrimination is painful for those that experience it and traumatic when it’s ignored. Ensure that in every step of hiring, you train and check your company for subconscious biases. Otherwise, a company can’t last.