Lack of Due Diligence in Hiring Can Come Back to Haunt You

Halloween is just around the corner and we were thinking how ghoulish it would be to hire someone without conducting the proper employment background check. A lack of due diligence in the employment screening process can come back to haunt you.

Avoid Negligent Hiring

Negligent hiring occurs when an employer fails to review references or conduct a background check before hiring a new employee. According to the Nonprofit Risk Management Center,”Typically a claim of negligent hiring will allege that if the employer had engaged in more due diligence when screening the worker, a history of similar conduct would have been revealed which should have disqualified the worker from consideration.”

To prove negligent hiring, the injured person must show:

• An employer did not “exercise reasonable care” when hiring the worker
• The employee had dangerous tendencies (this may be as simple as a poor driving record)
• The employer placed the employee in a position that could injure others 

Careless hiring practices can place you and your company at risk of a lawsuit, resulting in potentially negative financial consequences and damage to the company’s reputation.

Unmask Potential Bad Hires

It is important to perform your due diligence by performing a background check on every person you hire, regardless of the size of your workforce.

According to the ISO Review article, “Negligent Hiring: Employer Risk”: Companies could dispute that the cost of conducting background checks is prohibitive. But the cost of not performing due diligence resulting in negligent hiring can be far greater. Violence, theft, and drug use are reasons alone to prescreen applicants. Even if an applicant is a referral, it doesn’t mean he or she is a quality employee.    

In 2011, approximately 10% of all fatal U.S. workplace injuries from transportation incidents or homicides were homicides, according to the U.S. Bureau of Labor Statistics.

That means you and your company need to:

• Create a hiring program that includes employment pre-screening in compliance with the federal Fair Credit Report Act (FCRA) and all applicable federal and state laws
• Train all hiring managers on the importance of the program and how to follow proper policies and procedures
• Audit your employee screening program on a regular basis

And if you use a third party screening service, ensure they are in compliance, too. Don’t let a lack of due diligence in your employment screening process can come back to haunt you. TruDiligence offers accurate, comprehensive, and legally compliant background checks. Contact us for more information.