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Employees need to be informed as to what behavior is deemed inappropriate so they can be trained accordingly.
This needs to take place in advance of you taking action to deal with an adverse situation that affects your workplace.
Savvy employees understand that some policies in their workplace are unwritten, but all employees are entitled to understand workplace norms.
Beyond the employee, a fraternization policy is even more significant for the employer.
You might think that employee friendships and romantic relationships only affect the private lives of those involved. A dating relationship, especially one that goes awry, can have a very damaging effect on other employees and disrupt workplace harmony.
Managers who are dating or romantically involved with a subordinate is never a good idea.
This can be especially true in high-growth companies that demand long work hours and tend to hire more single employees.
Even if it does not violate a written policy, your boss (the CEO or the board) might not care, and view it as a lack of senior management acumen.
Do you think you need a fraternization policy for your workplace?
It's not good for the company, the manager, the employee, or the employee's coworkers. And this holds for employees who date managers in another department.
The relationship, or frequently former relationship, limits how you as a manager can promote, or utilize the talents of, a subordinate.
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But consider this: according to a recent Workplace Options survey, nearly 85% of 18-29 year olds would have a romantic relationship with a co-worker, compared to just over 35% for 30-46 year olds and about 30% of 47-66 year olds.