People Management & HR

3 workplace romance lessons companies can learn from Jeff Zucker

  • 4 min Read
  • March 7, 2022

Author

Escalon

Table of Contents

The resignation of CNN’s president, Jeff Zucker, over an undisclosed workplace relationship has HR teams nationwide considering their relationship policies. Or at least, that’s the impact this headline story should have. 


Zucker failed to report his (consensual) relationship with CNN’s chief marketing officer, Allison Gollust, which violated CNN’s standards of business conduct. The section titled “personal relationships at work” prohibits all employees from hiring or supervising anyone they’ve had a personal relationship with. If they do find themselves in a relationship with an employee they influence, can promote or oversee in any way, they’re required to immediately report that relationship to HR. Zucker did not follow CNN’s fraternization policy. The whole company paid the price. 


Had Zucker simply reported the relationship, there’s a chance CNN could have come to a peaceful arrangement that allowed both parties to stay on staff and in the relationship. Instead, Zucker’s actions sparked a media frenzy that rippled throughout the company. 


We can learn a lot from Zucker’s misstep, about ourselves and our employees. Here are the biggest takeaways:


Yes, workplace relationship policies still matter



The past two years of remote work may have shuffled your romance policy to the bottom of the priority stack, but work from home doesn’t mean your company is immune from the fallout caused by inappropriate relationships. 


Misconduct can happen anywhere — at an after-work happy hour or over Slack. These policies don’t expire just because the setting changes. If anything, anti-harassment and nonconsensual relationship protection is more important than ever, as online communication is more difficult to monitor than workplace interactions. 


Talk to us about how our outsourced business services can help your startup develop strategic HR solutions and bring long-lasting value.



Be clear and be consistent



There’s no set workplace relationship standard or enforcement policy. That means you have the freedom to set up your own best practices and standards, but it also means it’s easy to ignore these policies. In fact, 41% of employees aren’t even aware of their company’s romance policy. 


Generally, companies should prohibit relationships between supervisors and direct reports. Not only does this create an awkward and potentially favoritism-prone environment for the other employees, if the relationship goes south, the report’s job is in jeopardy. But beyond that basic guideline, your relationship policy can range from strict — prohibiting all relationships between any manager and any lower-level employee — to lenient, like allowing any relationship, as long as it’s reported. 


Whatever policy your company develops, it must be consistently and clearly enforced. A section in the new hire handbook isn’t enough. To protect both your company and your people, your fraternization rules should be annually reviewed with all employees, the consequences of an undisclosed relationship clearly defined and the policy evenly enforced. 


It’s not just business, it’s legal



While the point of relationship policies isn’t to squash fragile new love, poorly formed (and poorly enforced) workplace relationship policies open your business up to significant litigation risk. If your company is found to be aware of an inappropriate relationship, consensual or not, you could face costly lawsuits for not protecting the subordinate party. Expensive law proceedings, bad press and sour company culture will hurt your bottom line for years to come. 


A simple, nonpunitive, well-known relationship policy gives your employees the space to meet and engage with one another without putting the company, or their jobs, at risk. At the same time, a clear, punishable harassment policy for nonconsensual relationships is just as critical to the health of your organization.  


One last note on company relationship policies:



They must apply to every employee at every level of the business. All too often, upper-level management and executives are allowed to skirt rules, simply because of their performance or value. But inconsistent application of any policies quickly creates a toxic culture. The long-term benefits of a healthy, clearly defined romance policy greatly outweigh the short-term loss of addressing a key employee’s misconduct. 


Want more?

Since 2006, Escalon has helped thousands of startups lower their payroll costs and bring value with our customized HR solutions — and we can help yours too. Talk to an expert today.

Talk to our team today to learn how Escalon can help take your company to the next level.

  • Expertise you can trust

    Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.

  • Quality and consistency

    Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.

  • Scalability and Flexibility

    Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.

Contact Us Today!

Tap into the latest insights from experts in your industry

Taxes

The SMB Owner’s Audit Preparation Timeline: 90 Days Out 

Three months before your audit starts is when you should begin serious preparation, not three days. Yet many business owners...

Taxes

The Cost of Waiting: Why Proactive Voluntary Disclosure Agreement (“VDA”) Filing Almost Always Beats an Audit 

Unaddressed, historical state tax exposure is often an outgrowth of being focused on building a company and not properly keeping track of  an expanding state and local tax footprint. The exposure accumulated as the...

Taxes

R&D Tax Credits for Non-Tech Companies: Are You Missing Out? 

When most business owners hear "R&D tax credit," they immediately think of software companies and biotech firms. This narrow perception costs non-tech businesses billions...

Taxes

5 Business Triggers That Should Prompt an Immediate Nexus Review 

There is a persistent myth in the world of state and local tax compliance that a nexus review is something...

Accounting & Finance

The SaaS Rule of 40: What It Means and How to Achieve It 

If you're running a SaaS business and talking to investors, you've probably heard someone mention the Rule of 40. This simple metric has become a...

Accounting & Finance

Common Audit Findings in SMBs and How to Avoid Them 

Nobody enjoys finding out that their financial audit uncovered significant deficiencies. Yet according to data from the Center for Audit...

People Management & HR

The True Cost of Employee Turnover: How to Calculate and Reduce It 

Employee turnover represents one of the most significant yet often underestimated costs facing American businesses today. While most business owners recognize that...

Accounting & Finance

SaaS Revenue Recognition: Mastering ASC 606 Compliance 

Revenue recognition might not be the most exciting topic at your next board meeting, but get it wrong and you'll have far bigger problems than a...

Taxes

Beneficial Ownership Information Reporting: What Last Years Changes Mean for Your Business 

In one of the most dramatic regulatory reversals in recent memory, the Financial Crimes Enforcement Network (FinCEN) fundamentally changed the...