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Article: Who's Minding The Store?

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Who's Minding The Store?

As the owner or manager of a growing business, your goal is "to be the world's best - committed to your customers, employees, and the community." Your store is finally on the road to profitability after months of working to make your dream a reality.  As business increases, added demands require you to hire a person to make deliveries.  You need someone trustworthy.  Unfortunately, time is short; and if your company is like most, you do not have the staff or the resources to thoroughly screen prospective employees.

What do you really know about an applicant?  Applications, resumes and interviews can only give you a superficial impression.  If you are trying to check out the references of a potential hire, do not expect to get much help from the person's former employer.  Chances are, they won't volunteer all the necessary information.  Unfortunately, poorly selected employees can erode an organization's profit in various ways: internal theft, embezzlement, or negligent hiring.  Did you know that at least 30% of applicants lie on their applications?

Consider this: U. S. Department of Commerce statistics indicate 30% of all business failures are the result of poor hiring practices.  Embezzlement costs $4 billion a year.  Other employee crime - blue and white collar - costs another $45 to $50 billion annually.  Statistics also indicate that most people who steal, defraud, or embezzle are never detected by their former employers. Depending on the industry, between 5% and 20% of applicants have criminal records they haven't told you about.

Negligent hiring

Lawsuits based on negligent hiring are another liability your company faces.  With increasing regularity, courts are holding employers liable for acts committed by employees on the job and perhaps even more alarmingly, while off-duty.  The term "negligent hiring" means that an employer has hired employees without properly confirming the information on their applications.  For instance, you hire a maintenance worker.  You direct that employee to sweep the parking lot and he performs his duties satisfactorily.  However, while sweeping, a teenage girl working at the business next door catches his attention.  On his day off, your employee assaults the teenager.  You, as his employer, can be held liable for the assault.  Why?  Because you failed to check the employee's criminal background that included prior convictions for assault and battery. ~ Workplace Violence

Workplace violence is an additional liability companies encounter.  CAL/OSHA has developed a bulletin titled the "Model Injury and Illness Prevention Program for Workplace Security." Employees with a history of assaults or who exhibit belligerent, intimidating, or threatening behavior to others are identified risks.  All too often we have seen instances of violent, homicidal behavior by employees or former employees.  In 1993, an ex-mail carrier in California went on a rampage, killing two and wounding three others.  In 1988, a former employee of a Sunnyvale company killed seven co-workers and wounded five others.  In 1994, a former bank employee killed two employees and wounded two others.  These companies faced wrongful death suits and guilt under the theory of negligent hiring.

Pre-employment background screening

Pre-employment screening helps ensure that your employees are who they say they are.  Being selective in the hiring process provides your business with a team of excellent employees, helps lower the high cost of turnover, and protects you in the event of negligent hiring lawsuits.  Companies must be more diligent in their hiring practices.  Pre-employment screening should include an examination of criminal history and verification of prior employment, education claims, and social security number.  The applicant's driving record, credit report, and professional licenses should also be reviewed.

Help limit your company's exposure through pre-employment screening.  Safeguard your business for the future.  The expression "an ounce of prevention is worth a pound of cure" applies to every business with employees.

Patricia S. Jacobs is CEO of Advanced Personnel Profiles, a pre-employment screening agency.  She can be reached at (805) 579-0630 or (800) 780-8696.