A Small Business Guide to Workplace Investigations

hr, human resources

Workplace issues can arise in any business, but for small businesses, handling reports correctly is crucial. Ignoring or mishandling complaints can lead to serious liabilities, damage workplace culture, and decrease employee trust.

When employees report concerns, whether about harassment, discrimination, or other workplace issues, employers should be prepared to investigate properly. A well-structured investigation process ensures fairness, protects employees, and helps businesses stay compliant with labor laws.

Why Workplace Investigations Matter

Employees want to feel heard. Studies show that for every 10% increase in internal reports, there's a 2% decrease in government fines and a 1% decrease in legal settlements. Addressing concerns promptly can prevent larger legal and financial risks down the road.

If a complaint involves discrimination, harassment, or other legally protected concerns, employers are required to act fast. However, even reports that aren't legally mandated for investigation should be addressed to show employees that their concerns matter.

Steps to Conduct a Fair Workplace Investigation

1. Respond Promptly

Acting quickly helps minimize risks and shows employees that concerns are taken seriously. For legal compliance, businesses must respond promptly to certain complaints.

2. Follow a Standardized Process

Consistency matters. Having a clear process in place helps ensure objectivity and thoroughness. Your procedure should include:

Choosing an investigator (HR staff or an external consultant)
Interviewing involved parties
Gathering and documenting evidence
Making a decision and following up

3. Keep Detailed Records

Every step of the investigation should be documented, including:

Reports from employees
Interview notes
Witness statements
Final conclusions and corrective actions

This documentation protects your business in case of legal challenges or future incidents.

4. Respect Anonymity (When Possible)

Not all employees feel comfortable reporting concerns openly. 28% of employees choose to report anonymously, and research shows these reports often contain more details. While anonymous reports can be harder to investigate, addressing them fairly strengthens employee trust.

5. Check for Bias

Bias can impact investigations, leading to unfair outcomes and a loss of trust. Employers should:

Provide bias training to those handling investigations
seeks a second opinion before making decisions
Consider external investigators for serious cases

Building a Workplace Culture of Trust

Handling employee complaints isn't just about reducing legal risks, it's about creating a positive work environment. When employees see that their reports are taken seriously, they're more likely to feel safe, valued, and engaged at work.

If your business needs support with workplace investigations or other HR challenges, Total Solutions is here to help. Contact us today to learn more.