What SMEs can learn from NSW Parliament's review of workplace culture

NSW Parliament has been rocked by a “confronting” landmark review that weeded out systematic bullying and sexual assault within parliamentary workplaces, revealing important lessons for SMEs looking to avoid a toxic work culture.

The review, conducted by former sex discrimination commissioner Elizabeth Broderick, found “Parliamentary workplaces have not been safe, inclusive or welcoming”, with one in five of the 450 people she spoke to reporting sexual harassment.

About 40% of sexual harassment incidents were perpetrated by an elected member of parliament, the report found, while more than half (52%) of bullying incidents were caused by MPs.

NSW Premier Dominic Perrottet described the findings as “sobering, confronting and unacceptable”.

“Every workplace across our state should be free from harassment, sexual harassment and sexual assault but this is not the case in the NSW Parliament,” Perrottet said.

Business leaders should listen closely to the findings and recommendations of the Broderick review, managing director of culture consultancy We Are Unity, Nat Cagilaba, tells SmartCompany.

“What we’re seeing in Parliament — both at a state and federal level — is a lot of disappointment. The expectation that the government is setting the standard for NSW and the country is not happening,” he said.

“For business leaders these revelations should serve as a call to action.”

Cagilaba says the key for business leaders is a transparent and proactive handling of issues. Without this, a pervasive “swept under the rug” culture permeates a workplace and leaves everyone feeling implicated.

“What we have seen in government, and indeed the many Royal Commissions of the past few years, is that behaviour without consequence becomes a malignant driver of culture within an organisation.”

Cagilaba says on workplace culture, as in matters like sustainability and environmental impact, the corporate sector is way ahead of government in setting the standard to live by.

“As leaders we need to be future-focused and consistently demonstrate who we want to be through our values and purpose,” he said.

SMEs should take the time to determine what kind of purpose-driven organisation they want to be, by asking questions like: what are the values we stand for, encourage, and will live by?

“Or put simply — what is it that you consider to be good?” Cagilaba asked.

“Employees need to know why they work for you and what they can expect from the culture within your organisation. Your policies and your actions must be consistent with that.”

Without this, SMEs can fall victim to a reactive workplace culture where the “bare minimum” is followed in matters of enforcing rules around staff conduct.

Be warned, Cagilaba continues: this “risks being caught out in a moral sense and reputationally they may end up on the wrong side of societal expectations”.

“Businesses must act now or risk being left behind.”

So what next for NSW Parliament? NSW Labor MP Walt Secord has resigned from the shadow frontbench after bullying allegations surfaced, while Perrottet has moved to develop a response to the allegations found in Broderick’s review.

“The NSW government is also committed to working with our parliamentary colleagues to implement the recommendations of the Broderick Review and ensure the NSW Parliament is a safe and welcoming environment for everyone who works or visits,” Perrottet said.

But in some ways, Cagilaba continues, it can be more straightforward to clean up a private sector workplace than a parliamentary one.

“In a corporate structure the workplace environment can be better managed and controlled, there is more governance and policy in place, and appropriate onboarding and training are provided as people move up through the ranks,” Cagilaba continued.

“To truly fix the culture in parliament better pre-selection vetting and processes need to be implemented from the onset to ensure the representatives elected understand, outside of serving their constituents, what is expected of them in the workplace.”

Cagilaba says it is particularly concerning that people were afraid to lodge their complaints due to concerns about confidentiality and fear of repercussions.

“To ensure psychological safety people need to know that there will be constructive outcomes when reporting incidents with no backlash on themselves, their career or reputation,” he said.

It can take years to shift ingrained organisational beliefs, but with a transparent incident process and reassurances of no negative repercussions for the reportee, any workplace can clean up its act.

“The big question will be: is the Parliament of NSW willing to take the journey?”