Recently, medical literature has caught up with conventional wisdom. People are less likely to sue doctors whom they believe have acted in their best interest and who communicate with them clearly and kindly. In plain English, doctors have discovered that good bedside manner is good business.

This same principle holds true for the business—good bedside manner translates into sound risk management.

A recent survey of 300 privately-held companies found that 26 percent had been sued by an employee. Forty-four percent reported that they felt it was likely that they will be sued by an employee this year. While the companies estimated that it would cost more than $100,000 to settle an employee lawsuit, ten percent predicted that it would cost at least $1 million. Employee lawsuits increase insurance premiums, negatively affect profit-and-loss statements, and tarnish the business’s image.

Employees, like medical patients, rarely sue people with whom they have good relationships. The best way to avoid getting sued is to develop good relationships.

Poor bedside manner also affects retention. People don’t leave their jobs; they leave their bosses. Two of the five main reasons top performers leave a company are dissatisfaction with management and conflicts with supervisors.

Here are five tips you can learn from doctors:

1. Be empathetic and genuine. People are angered by subtle behaviors that make them feel their needs are unimportant. One of the worst responses you can make in response to an employee’s complaint is to say “You are being too sensitive.” or “Don’t be silly.”
2. Be fair and consistent. Develop, publicize and follow policies that treat employees with respect.
3. Listen with an open mind. When an employee comes to you with a complaint, your tone is as important as your words.
4. Take action and follow up. Any time an employee makes a complaint; take prompt action, investigate the complaint fully, document what you have done, and follow up.
5. Create a sense of psychological safety. Employees need to feel that it is safe to voice negative views. Seek regular feedback through anonymous surveys or other safe forums. Ensure that no one is retaliated against for voicing a complaint.

New managers are often thrown into supervisory roles with little training and support. This can easily lead to making errors in judgment, such as mishandling communications with employees. The upside is that managers can be easily taught skills that will make them more effective. Invest in training to develop good bedside manner and mitigate your risk.