Sexual Harassment can have a Major Financial Impact on your Business
Sexual harassment is present in most organizations today. And you as the employer might not be aware of it altogether. And it shouldn’t surprise you, employers are often unaware of sexual harassment in their organization because women who have been harassed do not report it.
But this can cost you.
Simply because you were not aware of what is happening in your organization. You might have to pay (a lot) for someone else’s crime.
Financial Impact of Sexual Harassment on the Employer
Sexual harassment claims - One of the youngest directors at Infosys, Phaneesh Murthy, was accused of sexual harassment by his executive secretary and was paid $3 million in the settlement. Imagine having to pay this big of an amount for someone else’s mistake? This could easily be your organization too. In fact, sexual harassment claims often go up to as much as $20 million.
Impact on goodwill - The brand image that you’ve worked on for years or even decades will crumble from only one sexual harassment incident in the workplace. It can negatively impact your organization and all the hard work that you’ve put in all of the years to build your business.
Impact on employees - It shouldn’t surprise you if your employees start to leave after an incidence of sexual harassment in the workplace. Sexual harassment can make any workplace hostile, espicially for women. This decreases the job satisfaction among employees and they start looking for a better organization with a better workplace. Not just this, you will face difficulties in hiring new employees since your organization has a bad reputation due to that one sexual harassment case.
Non-Compliance to the PoSH Law
The PoSH law was enforced in 2013 to protect women against sexual harassment in the workplace. It has since made it compulsory for organizations with 10 (or more) employees to conduct anti-sexual harassment training to prevent any incidence of sexual harassment in the workplace.
Is your organization PoSH compliant?
If not, there are going to be consequences.
Non-compliance on your behalf can lead to -
Non-compliance to the law can attract a financial penalty of Rs 50,000 which can go up to twenty-five lakhs or imprisonment or both. The term can last for as long as 3 years.
Once imprisoned for more than 9 months, a director cannot become a director again for a period of 5 years.
Is your Organization PoSH Compliant?
Sexual harassment and its impact on the organization can be prevented if organizations comply with the PoSH law and conduct anti-harassment training.
Organizations like Rainmaker are solely dedicated to reducing sexual harassment from the workplace and conduct engaging awareness training among employees, managers, and even employer.
Make your organization a safe working place with awareness training and prevent sexual harassment today.