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Preventing sexual harassment in small business. Achieving the right culture, your risks and responsi


Whether it be another member of the management team, a colleague, external consultant or non-exec director, small businesses can be very close in nature and it can be hard to raise questions or allegations against someone considered to be of high regard in the company.

Factors such as fear of losing their job, not being believed (and back under the perpetrators control) and lack of confidence all contribute to people not raising issues as they are happening.

It is essential this behaviour is not allowed to develop or endure. First and foremost for the individual’s wellbeing and mental health. You as the employer have an obligation to prevent this from occurring and if you have not taken all reasonable steps to do so, then you can be found liable for the employee’s actions.

From a business point of view, this type of behaviour negatively impacts on the team performance, company morale, attraction and retention of talent and overall company success.

There are ways that a small business can take steps to prevent this happening and promote a productive, positive working environment.

Here we are going to look at these steps, this is a mixture of creating a supportive culture, setting clear expectations, implementing the right policies and all supported by clear training. These are essential elements which add and contribute to each other to achieve a safe environment, reduce ambiguity and set protocols.

Look out for the next blog post, which will look at further practical steps for dealing with a complaint.

What are the risks to the business?

Sexual harassment is unlawful under the Equality Act. If the allegations are not taken seriously or addressed, the individual may be signed off with stress and consequently then be absent from the business for a long period of time. Furthermore, if the business fails to protect the individual, depending on their legal status, the employee may resign under constructive dismissal and raise an employment tribunal claim against the employer for damages.

There is currently no limit on the compensation award for discrimination claims. Further claims for injury to feelings may also be made.

This not only creates high costs and potential fines, but also damage to reputation, future attraction of talent into the business and the impact on general morale.

People cannot make their best contributions if they are working in fear of harassment or a culture which is seen to tolerate inappropriate behaviour and an employee can also bring a claim of harassment even where it is not directed at them personally, so long as they can show that the harassment created an offensive environment for them to work in.

Set expectations, from the start.

It is often underestimated the role senior leaders and you as the business owner have in setting out what is expected and acceptable and leading the culture. Companies grow, and you don’t have the time to be involved in all the recruitment and inductions anymore. However, it is not through what is written on unopened policies that creates the standards (and company defence to duty of care) but what is modelled and displayed through the behaviour at the top, or allowed to go ‘unnoticed’.

How can you expect to behave in a certain way when you don’t tell them how you want them to behave?

Don’t leave people in doubt of what is expected. This is your responsibility.

Start from your recruitment processes, inductions are key to setting the expectations and culture of the business from the start and to changing behaviours and the culture to how to want it to be going forward.

Implement and review your policies and procedures.

I know this is repeated a lot by HR, but it is because it is crucial to supporting your business! Implement and create awareness of an anti-harassment policy. Setting a clear understanding in writing for people to refer to, ‘this is how we expect people to behave’ around here (bullies convince people there is nothing that can be done about it), and what types of behaviours are prohibited.

Ensure policies are reflective and updated with changes in legislation, such as the Equality Act and that the language is gender neutral and reference same sex sexual harassment. The policy should recognise that sexual harassment can take a number of forms and include all behaviour, whether this is speech, touch, emails, written communications or jokes and ‘banter’.

There should be clear consequences for unacceptable behaviour if the policy is breached, through the disciplinary process, which are followed through in the event of an upheld complaint.

Make it clear who is responsible for the policy, explain the process that will be followed and ensure that person is accessible and approachable. Take complaints seriously and carry out a full and fair investigation.

All employees should be required to read the policy and sign an acknowledgement to confirm it has been received and understood as evidence for their file. Companies that grow quickly can miss this important step, but having tailored policies written down and clearly communicated sets the tone for the business and helps avoid problems as they grow, in all areas of people management.

Small businesses don’t always have someone independent responsible for HR in house but it is important to have someone identified in the business who is considered a confidential and safe space for raising issues and concerns, if not internally, businesses can consider an external support which adds to the creations of an open and transparent culture, when they hold weight in the business.

Train your staff, don’t make assumptions.

Face to face training, highlighting the importance of the issue to the company, what is and is not acceptable, and when behaviour has crossed the line, is essential. Explaining the difference between office banter and harassment can really provide clear distinctions on what isn’t acceptable. Link this to your company values and promote them. Raising awareness and improving employee’s understanding is central to reducing the risk, people can then be more confident in their response and reactions when they know what to do in that situation.

Make it clear what victimisation is, create a safe space so they don’t feel at risk of being a victim should they come forward.

In the training, make it clear both parties are supported through the process. There will be a fair investigation within reasonable timescales and a clear procedure will be followed.

Consider separate training for managers in the business and the senior leaders. Managers often make pre-judgements during investigations that ‘they have not witnessed any behaviour like that’, or ‘they can’t see that person behaving in that way’. It is important to make them aware they won’t necessarily see or witness that behaviour, people will moderate themselves when they are present as they are in senior positions.

Create an environment in which employees feel safe to have a voice and contribute and stand up to bullies.

Creating a culture where people feel supported and confident in raising issues.

This not only helps the individual feel safe to raise issues in that environment, but when they feel paralysed and unable to raise a complaint themselves, it creates a situation where by-standers feel empowered to raise concerns without fear of repercussion or backlash. Bystanders are an area we need to address, an area where it can be easy to hide and turn a blind eye but they are the biggest group and therefore influence the culture of whether it’s acceptable or not, and if people feel it is ok to do nothing, it creates the environment that that type of behaviour can be ignored.

How can we get bystanders to contribute? Through creating a social power we can make people feel safe and create strength in that environment. When you make it acceptable for people to speak out, take complaints seriously, provide channels of reporting and training.

Give your employees a voice, ‘you are in charge of how you think your workplace should be’. Get them involved and let them help build that culture, this creates ownership and then they will take more accountability for being part of what it stands for.

Tackle issues, demonstrate you are proactive and take a stand. Look at the bigger picture and all things happening in the business relevant to this area to see how you support or prevent harassment through your gender diversity, recruitment processes, gender pay reporting, performance management processes, promotions and leavers.

Research tells us greater diversity and positive environments are more productive, benefit from higher performance and are more profitable.

If you have any questions or concerns regarding harassment or bullying in your business, or you want to ensure this doesn’t become a risk as you grow, call us today to discuss.

If you would like help in growing and managing your team, contact us today to arrange a free consultation on how we can support your business.

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