Employee Claims

Adopting a strategy for dealing with employee claims should be a part of any company's risk management program. Potential employee claims is simply a risk that needs to be addressed.

The goal of any risk management strategy to deal with employee claims is prevention. In other words, the business should adopt policies or practices that will reduce the risk that employees will sue the company - that employees will feel the need to find solutions to their problems outside the company. This same approach will also have the benefit of bringing about a more productive workforce and one that is likely to remain union-free, if that is an objective of the company.

The key to a risk management program for reducing the likelihood of employee claims is a positive program of employee relations. If you answer "yes" to some or all of the following questions, you will know if your company has the right approach to employee relations or whether you have some work to do.

• Has the business adopted an Employee Relations Program?
• Are managers and supervisors familiar with the basic elements of the program?
• Has the business made a decision that it wishes to maintain a union-free work environment?
• Has this decision been communicated to everyone in the organization?
• Have managers and supervisors received training in employee relations?
• Does the business have a current set of written personnel policies?
• Does the business have a clear and understandable policy for dealing with problem employees?
• Do employees know what benefits they have?
• Does the business have a good safety program?
• Does the business have an Injury & Illness Prevention Program and a Hazard Communication Program?
• Do supervisors communicate well with employees?
• Are employees treated with dignity and respect?
• Are employees treated fairly and consistently?
• Does the business have a teamwork atmosphere as opposed to the "we/them" approach when dealing with employees?
• Does the business have an Open Door Policy which allows employees to express their concerns within the company and have their concerns and questions addressed?
• Does the company use exit interviews when employees leave the company to ask employees for suggestions about issues in the company?
• Are managers or supervisors evaluated on their employee relation skills?

This list is not all-inclusive, but these questions set out the basics. Generally, if employees feel that they are fairly treated, that if there are problems the company is open to finding a solution, they are less likely to go outside, to a union, an attorney, or to a Federal or State agency.

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