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Establish clear workplace policies - Develop an employee handbook and distribute it! Sample employee handbooks and HR forms libraries are easily accessible and most law-firms or insurers will happily provide content. For your protection, be sure your handbook includes an employment-at-will statement and an equal employment opportunity statement. Create written workplace policies on employment practices; post them and include in employee handbooks. Establish a policy for employees to report concerns and for management to respond. Educate management and employees about ethical and workplace practices. You may wish to include diversity and sensitivity training as part of this education program.
Hire carefully—Screen employees thoroughly, avoiding any discriminatory practices.
Provide job descriptions - Create a detailed job description for each role. Each job description should clearly define the required skills and performance expectations.
Institute a zero-tolerance policy – This should be established for substance abuse, harassment and any form of discrimination. Additionally, have an "open door" policy in which employees can report infractions without fear of retribution. It is advisable to have a couple of people that issues can be reported to instead of just one.
Keep thorough records - Document all employee complaints or investigations, as well as what your company did to resolve those issues.
Perform regular employee reviews—Review employee performance and keep a written record of reviews.