How can POSH Compliance fuel business growth?

Did you know that only 8% of the employees are aware of the POSH Act and 11% of the aggrieved would leave the organization rather than choose to report workplace sexual harassment?

In the ever-changing world of modern business, success is not just about making profits or being the biggest company. It is also about creating a workplace where everyone can do their best, and where we treat each other with respect, kindness, and fairness. Creating such a workplace is not just an unworldly dream but it is the result of implementing and ensuring compliance with the Prevention of Sexual Harassment (POSH) law in the organization. In this blog, we will explore how implementing POSH compliance is not just a legal requirement but a transformative growth strategy that improves a company’s reputation and propels organizations to new heights.

This blog is intended for business leaders, HR professionals, and anyone responsible for implementing POSH Compliance in their workplace. In an era when corporate ethics are under close scrutiny, comprehending the significance of this topic is not just important but essential. Through this blog, you will be able to gain insights into how adhering to this Act can boost your company’s reputation, and learn practical steps to ensure full compliance within your workplace.

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Why prevention of sexual harassment is more than compliance?

Sapna Madaan, HR Head, Exotic India, says: 

“Implementing a robust POSH compliance program is a clear testament to an organization’s commitment to employee well-being, a commitment that aligns with the growing emphasis on fostering a safe and nurturing environment for employees. Firstly, POSH compliance extends beyond the realm of mere legal checkboxes. It encompasses conducting awareness sessions, providing crucial mental health support, and actively contributing to the economic betterment of employees. Secondly, a robust POSH mechanism positions an organization as an attractive employer for job seekers. Thirdly, engaging employees in open discussions about their workplace experiences and subsequently designing initiatives like counseling and awareness sessions proves to be more effective than a checkbox approach.

Moreover, POSH compliance contributes to employee retention. Employees feel valued and unjudged, enjoying the freedom to express themselves in a harassment-free environment. This sense of freedom fosters loyalty, reducing employee turnover and aiding in talent acquisition. Lastly, being seen as a fully compliant organization enhances the organization’s standing and reputation, reinforcing the commitment to fostering a safe and respectful work environment.”

The essence of any organization is defined not only by its products or services but by the values it upholds, the culture it fosters, and the way it treats its people. It is about safeguarding the dignity of every individual, nurturing a culture of respect, and unlocking the true potential of your organization.  It is a strategic maneuver that can reshape your company’s trajectory. Here’s why:

Enhanced reputation

Imagine your organization as a ship navigating the vast sea of the corporate world. Your reputation is the anchor that holds you steady in stormy waters. Effective POSH compliance sends a powerful message to employees, clients, and investors—it tells them that your company is deeply committed to ethical practices. 

Attracting top talent 

In today’s cutthroat job market, potential hires seek more than just a paycheck. They look for a secure, respectful, and inclusive workplace. Effective POSH compliance demonstrates your dedication to employee well-being, positioning your company as an employer of choice. 

Boosting employee morale and productivity 

When employees know that their concerns will be taken seriously and addressed promptly, it boosts their morale and overall job satisfaction. A content workforce is more likely to be productive and contribute positively to your company’s reputation. Reduced employee turnover also signifies a stable and attractive work environment.

Mitigating legal risks: the shield of protection

Non-compliance with the POSH Act can lead to protracted legal battles, reputational damage, and severe financial losses. By adhering to the Act, you proactively reduce these risks, ensuring the smooth operation of your business and safeguarding your bottom line. 

In the case – Mrs. Arvinder Bagga & Ors. v. Local Complaints Committee, the Indore Bench of the Madhya Pradesh High Court has slapped a penalty of Rs. 50,000.00 on Medanta Hospital, Indore for not having Internal Complaints Committee (ICC) under the POSH Act. The court has also directed the hospital to pay a compensation of INR 25 Lakhs to the complainant for failing to address her complaint of sexual harassment. The order was passed in concurrence with the report that was filed by the Local Complaints Committee, Indore.

Also read: PoSH Compliance: Investment vs. Expense

Fostering innovation and creativity: the engine of growth

Diversity is the lifeblood of innovation. A workplace that embraces diversity and inclusion encourages fresh perspectives and ideas, stimulating creativity and problem-solving. This can be a significant driver of growth. 

Example: Hindustan Unilever Limited (HUL) has been recognized for its diversity and inclusion initiatives, which have resulted in innovative product development and market expansion.

Positive public perception

Companies that prioritize employee well-being and gender equality tend to enjoy a more favorable public image. Customers and partners alike are increasingly drawn to organizations that uphold ethical standards. A positive public perception can lead to increased customer loyalty and trust, ultimately benefiting your bottom line.

Turning POSH compliance into growth: action items

It is clear that POSH compliance offers a wealth of advantages. But how can you harness its full potential? Here are practical steps:

• Education: Organizing regular workshops and awareness programs is pivotal in creating a workplace where employees are well informed about their roles and responsibilities and the redressal mechanism available to them under the POSH Act. These initiatives go beyond dry legalities, using real-life scenarios to vividly illustrate the importance of POSH compliance. By bringing these concepts to life, employees can better grasp the significance of fostering a respectful and safe work environment
• Establishing a complaints mechanism: Ensuring employees have access to a confidential channel for reporting incidents is a cornerstone of trust and accountability. This mechanism not only empowers employees but also sends a clear message that their concerns are taken seriously, fostering a culture where issues are addressed promptly and confidentially.
• Transparent investigations: Handling complaints with transparency, fairness, and timeliness is crucial. It instills confidence among employees that their grievances will be addressed impartially. Sharing case resolutions while safeguarding identities is a powerful way to showcase the system’s effectiveness, reinforcing faith in the process.
• Leadership commitment: Leadership plays a pivotal role in setting the tone for the entire organization. It is essential that top management actively supports and champions the cause of preventing sexual harassment. Their commitment should be communicated across the organization through platforms like town hall meetings. This emphasizes the organization’s unwavering dedication to POSH compliance.
• Continuous improvement: Regularly evaluating and enhancing your organization’s compliance efforts is essential. This proactive approach ensures that your practices remain aligned with evolving needs and expectations, further strengthening your commitment to maintaining a respectful and safe workplace.

Sachin Patange, Chief Compliance Officer, IndusInd Bank, says: 

“POSH Compliance is a crucial aspect that can be approached proactively to yield several benefits. Firstly, viewing compliance proactively can make an organization more appealing to job seekers, particularly female employees who seek a safe working environment. A strong POSH mechanism and initiatives can help retain female employees in the workforce and ensure equal opportunities for women across sectors and roles(including unconventional roles). It fosters increased tenure longevity and helps women grow in their careers without hindrance. Visible and transparent POSH implementation within the organization not only reduces incidents of workplace sexual harassment but also reduces attrition rates, enhances productivity, and showcases the organization as an attractive employer. 

A well-structured POSH mechanism can also mitigate the productivity impact of investigations and reduce grapevine communication among employees involved. Moreover, it is essential to acknowledge that workplace harassment can affect male employees as well, and societal beliefs may deter them from reporting issues. A gender-neutral policy and a robust POSH framework provide a safe space for all employees to raise their complaints and seek resolution.”

Also read: How to go beyond POSH compliance and improve employee well-being?

POSH compliance is not just a legal requirement; it is a strategic imperative. Embracing POSH compliance can lead to an enhanced reputation, talent attraction, improved morale and productivity, risk mitigation, and a culture of innovation. By nurturing a workplace free from harassment, organizations set themselves on a path to sustainable growth, all while fostering a safer, more inclusive society.

Remember, compliance is not a one-time endeavor; it is an ongoing commitment to a brighter future for your organization and its employees.

How can Ungender help you?

At Ungender, we believe that POSH is not just a compliance requirement but much more than that. Our experts provide end-to-end advisory and solutions for POSH compliance in a manner that will lead to enhancing your overall organizational culture.

We also provide you with e-learning modules and content for constant learning and knowledge-building to stay up to date with the latest developments in the law. Get in touch with us or connect with us at contact@ungender.in.

Author: Pooja Poddar is a skilled and experienced trainer and External Member with over 8 years of experience in the Prevention of Sexual Harassment (PoSH) law. At Ungender, Pooja is the Head of PoSH Services, where she leads conducting awareness and sensitization programs, Internal Committee training and capacity-building sessions, and workshops related to workplace safety. Her insights are driven by the numerous dialogues she has created during her awareness and training programs and case inquiries that she has led as an investigator.