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Five Best Practices When Investigating An Employee Complaint

“All complaints will be swiftly and thoroughly investigated.” No doubt this sentence, or something similar, appears in your company’s employee handbook. Unfortunately, there will likely be a time when you will have to put those words into action. Whether an employee alleges discrimination or harassment, or reports a coworker for theft or fraud, you will need to handle the complaint appropriately.

Keep these five best practices in mind to avoid unnecessary legal complications:

  1. Maintain confidentiality. Take every precaution to keep details of the allegation private — especially the identities of the accused and the accuser. Remind managers that they need to have all conversations behind closed doors, store all meeting notes securely, and speak only to those people who are necessary to the investigation. Assure workers involved in the investigation that it will be held in strict confidence and inform them that they are not free to talk about any part of the process.
  2. Conduct productive interviews. Be prepared with an opening statement that describes what is being investigated, then ask open-ended questions that encourage employees to say more than “yes” or “no.” Ask all interviewees the same questions so that you can compare answers, identify patterns, and uncover discrepancies. Also, have a witness present to verify what occurred during the interviews.
  3. Avoid bias. Keep an open mind while gathering facts. Just because an employee has a reputation around the office as a ‘troublemaker’ or ‘crank,’ does not mean that person is lying or guilty of an impropriety. Consider hiring a third-party investigator, such as a fraud expert, to handle interviews. This can help preserve impartiality and show all parties that the investigation is being taken seriously.
  4. Document activities. Make detailed notes on all the steps of your investigation. Include the dates and times of workspace searches, computer forensic activity, and conversations. After every interview or action taken, review your notes to ensure they capture all relevant information.
  5. Close the loops. Even if an investigation turns up no evidence of misconduct or criminal behavior, you need to follow up and close the loop with those involved. When complaints are found to have merit, take appropriate action as quickly as possible. You may be able to handle some minor issues with in-house personnel. But consult your legal and financial advisors — and possibly law enforcement — in more serious cases.

Contact us if you need help investigating a fraud allegation.

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