Embracing a culture of change

Recently, estate agency Foxtons stated it has “more to do” to build a respectful culture in the workplace following reports alleging that staff experienced sexual harassment and inappropriate behaviour. An investigation by Bloomberg revealed that employees were subject to groping, unwanted physical contact, suggestive messages and racist comments. Foxtons made a statement, saying: “We take allegations of harassment and misconduct extremely seriously and thoroughly investigate them.” Culture is the unique way that a company lives out its purpose and delivers its promise to customers. It can be defined as the environment created for employees and customers through values, traditions and interaction. Why companies must go beyond PR statements and demonstrate real change When companies prioritise a culture of change, employees feel empowered to contribute their ideas, which leads to a sense of ownership and accountability in decision-making processes. The culture of a company sets the tone for the workforce. A higher employee engagement should also have a lower rate of departures, meaning the company will spend less on hiring. When there is already a damaged culture within a company, then building a culture of trust is vital, and this starts with leadership that is committed to putting their team’s best interests and safety at the forefront and which can deliver on its promises. Employees feel empowered to make decisions within their sphere of expertise, knowing they have their leaders’ support and trust. This creates a cycle of engagement, motivation and innovation that drives organisational success. Companies must go beyond any statements they make and action the cultural change. Corporate governance will need to encourage greater transparency, such as gender pay gap reporting. Companies also need to understand that culture is dynamic and that change will happen in their organisations even if they do nothing to guide it. Therefore, it is best to take a proactive approach to build the right culture. Implications for businesses that fail to tackle workplace harassment effectively Employers in the UK have a duty to protect their employees from harassment under the Equality Act 2010. Failing to address complaints productively can lead to Employment Tribunal claims, fines, harm to workplace morale and reputational damage to the business. Workplace harassment not only affects individual employees, but also has a detrimental impact on the overall work environment and culture. A hostile/toxic work environment erodes trust, collaboration and teamwork among colleagues. It hinders productivity and innovation and this reduces employee engagement. Furthermore, workplace harassments have far-reaching consequences for employees affecting their emotional wellbeing, physical health, career progression and overall job satisfaction. Employers must actively work to create a safe and inclusive workplace environment where harassment is not tolerated and employees are supported. What meaningful policies and enforcement should look like in practice In respect of sexual harassment, employers are under a new duty to take reasonable steps to prevent sexual harassment of workers in the course of their employment from 26 October 2024. This new duty is contained in the Worker Protection (Amendment of Equality Act 2010) Act 2023. It is a preventative duty which means that employers should anticipate scenarios where their workers may be subject to sexual harassment in the course of their employment and take action to prevent them arising. If sexual harassment has taken place, employers should take action to stop it happening again. Employers will need to show the specific measures they have put in place to comply with the new duty. This duty should be enforced into your organisation and, in practice, it should improve workplace cultures by requiring employers to anticipate how sexual harassment might happen in their workplace and take proactive reasonable steps to prevent it. The Worker Protection (Amendment of Equality Act 2010) Act 2023 now requires employers to conduct regular risk assessments to identify potential risks of harassment, implement comprehensive anti-harassment policies and provide training designed to prevent harassment by third parties, particularly harassment of a sexual nature. An organisation may have separate policies to deal with sexual harassment and other forms of harassment, or a single policy covering both. A meaningful policy should incorporate the following: specify who is protected state that sexual harassment will not be tolerated and is unlawful state the law requires employers to take reasonable steps to prevent sexual harassment of their workers state that harassment or victimisation may lead to disciplinary action up to and including dismissal define sexual harassment and provide clear examples of it – examples should be relevant to your working environment and reflect the diverse range of people that harassment may affect include an effective procedure for receiving and responding to complaints of harassment address third-party harassment (such as by customers or service users). Organisations should also review their policy regularly and monitor its effectiveness in order to implement any changes, if necessary. Having meaningful policies in place should help organisations review where the power of imbalance lies and whether there is a lack of diversity within the organisation. Organisations should also provide training to all their staff, including senior staff, so that they understand what harassment in the workplace is, what to do if they experience or witness it and how to handle complaints of harassment. Foxtons and other organisations should encourage open communication, provide anti-harassment training and promptly address any reported incidents. This is crucial towards mitigating the impact of workplace harassment on employees. By doing so, organisations can foster a culture that values respect, equality and the well-being of its employees. Chris Cook is a partner and head of employment and data protection, and Alia Javid is a trainee solicitor in the employment team at SA Law