Companies may think that their employees are reporting wrongdoing they experience or witness to management — but chances are they're probably not.

In fact, companies who think they have the full picture of what goes on in the workplace could be missing many of the issues that are happening amongst employees, including harassment, bias, bullying, safety issues, and more. This affects employees' safety, morale, and ability to do their job if they feel they can’t report an issue, or if they see reported issues go unaddressed. Not addressing the problem could also impact a company’s brand, causing lost revenue, media attention, and litigation.

Companies should want to know what's going on in their workplace, and be proactive in not just discouraging wrongdoing before it happens, but to be aware of wrongdoing when it happens — yet employees often don't speak up when they see it. There are a number of reasons why, but a primary one keeping employees silent is the fear of retaliation, or that by reporting, their jobs or future career will be in danger, that they’ll be shamed about what they did, or become the subject of workplace gossip.

How can a company offer their employees the chance to give feedback without being blocked by fear or hesitation? Ensure truly anonymous reporting. Here's why that's crucial for companies and employees, and why critics of anonymous feedback are hurting rather than helping their culture.
 
Why Having Anonymous Feedback is the Best Approach for a Company

There are company cultures today that won't allow their employees to give anonymous feedback. They say that anonymous feedback doesn't build trust or encourage transparency, and that employees should own their opinions and face conflict head-on.

It's certainly a nice ideal, but it ignores the reality of what's going on in workplaces today. It doesn't pay attention to hierarchy or dynamics that pressure certain employees to remain silent. It assumes that there will be no retaliation whatsoever for coming forward, that the employee will always be believed, and that leadership will always put in the effort to fix the issue.

Unfortunately, that's just not the case. What's actually going on is that employees — particularly women, minorities, entry-level, and those who can't take the risk of retaliation — aren't reporting because they don't feel they can. This could be due to fear of retaliation, fear of not being believed, or knowing that nothing will be done about it if reported.

And no amount of telling employees to "just speak up" will change that.

A new report on the State of Workplace Wrongdoing affirms this. The main reason why employees don't report when they see workplace wrongdoing is because they don't believe the company will do anything about it, or that they won't be believed. And they have reason to think that: 19% of those who had reported an issue to management said that nothing was done about it. Employees give up trying when they don't see their efforts to alert leadership to wrongdoing being taken seriously.

But employees are also not reporting because of fear of retaliation. Why speak up when others have suffered consequences for it, including job demotion or firing, being shunned or not called a "team player," shamed, or even becoming the subject of gossip? A study by Randstad found that 25% of women say that quitting their jobs would be easier than and preferable to reporting harassment. For many employees — especially the most vulnerable due to gender, ethnicity, or job status — it's not worth the risk.

According to the report, entry-level employees cited fear of retaliation as the reason why they haven’t reported wrongdoing when they see it, as new employees may be scared to lose their job, or suffer impact early in their career growth. In fact, Gallup notes that employee fears over losing their job is currently at a 45-year high. Why do anything that might endanger steady employment?

Even in progressive workplaces or those with high achievers, there is still fear of retaliation over reporting issues like harassment and discrimination to even giving general feedback about the workplace.

This results in employees staying silent, believing that it’s easier to do than take the risk.

But if companies truly want to keep their employees safe, happy, and productive, and their company culture healthy, they need to focus on giving a voice to those who are staying silent. Giving employees the opportunity to report anonymously is the way to level the playing field and build trust.
 
Companies Need to Do Their Part
With the recent #MeToo movement, the Black Lives Matter movement, and even the COVID-19 pandemic and new ways of working, companies are being held more accountable than ever to know what's going on in their work cultures, and to provide transparency, fairness, and safety.

They're also being held accountable to make the changes necessary to ensure everyone is able to do their jobs without fear of harassment, bullying, or bias, and that everyone has the ability to share their feedback on whatever concerns they have without feeling like they may be risking their job or reputation when they do so.

70% of employees say that if they had a way to report anonymously, they would be more inclined to do so. This is why it's important to meet employees where they are, understand their fears, and give them an anonymous alternative. This will not only protect them from retaliation, but will still do the job of providing data to HR or leadership on workplace wrongdoings, which can be quickly addressed and mitigated.

Companies also need to make sure that they're creating a culture where reporting is encouraged, and where sharing feedback is everyone's right, not just a privilege for a few. Too often companies don't have a stance on reporting, and that leaves a vacuum that suggests they want issues kept quiet.

Above all, companies need to take action. Nothing changes if channels for giving anonymous feedback are provided, yet leadership does nothing with the data. It just goes back to the original problem of non-reporting: Why should I if nothing will be done about it? Take action to improve the workplace and to create an environment where people want to work, and where people believe they can thrive.