July 2006
VOLUME 16, NUMBER 7

 

Avoid Headaches and Possible Lawsuits by Investigating Prospective Employees
by Dr. Mark Wade


Of all the tasks required of a manager, two of the toughest have to be hiring the right people and terminating existing employees. Both are filled with pitfalls. One wrong step, and your in the middle of reduced productivity, costly turnover, unemployment compensation claims, wasted training expenses, hurt feelings and maybe even litigation.

Poor hiring and mishandled terminations can run through an organization like a cancer. If you believe your organization is only as good as its employees, you understand how these two responsibilities play a major role in its success.

To make the best of hiring and terminations, investigate and document. Many employers spend more time investigating a new car than they do researching prospective employees and documenting poor employee performance before termination. Proper diligence in both areas will go long way toward reducing turnover and freeing up time for more productive endeavors.

Take Time Before Hiring

When selecting new employees, do your homework. Have applicants complete formal applications, including a signed statement that all information is complete and accurate to the best of their ability. But don’t take their word for it.

Check the document for inconsistencies. Do things make sense? Are they in order? Look for trends, such as years with previous employers, reasons for leaving prior employers and frequent moves.

Does the application demonstrate an evolution in growth, development and responsibility levels, or does it seem that the applicant is just moving from position to position? If a resume is provided, compare it to the application.

A poorly crafted or rushed resume is an indicator that the candidate doesn’t take the position seriously. Did the candidate research the company before applying, or are you just one in a long list of prospective employers?

Avoid Future Problems

If you still aren’t sold on the importance of investigating prospective employees, let me leave you with two little words – negligent hiring.

Negligent hiring refers to employers who fail to use reasonable care in hiring an employee, who then commits a crime while at the company. Firms found guilty of negligent hiring, thereby putting other employees or customers at risk, can be fined and required to pay damages.

Next month I’ll address the other book-end of personnel management – effective terminations.

Follow These Steps to Ensure You’re hiring the Right Person

Once you’ve developed an initial impression, begin investigating the prospective employee.
1. Contact references provided by the applicant – and also some that aren’t listed. If you know people working at the applicant’s previous employer or university, contact them for their opinion.

2. Verify schools, years attended and degrees earned. You may want to request a copy of transcripts. This applies to trade schools as well.

3. Verify reference letters provided by applicants.

4. Check you states sexual predator database.

5. Check you states worker’s compensation database.

6. Verify all contact information, such as place of residence and telephone number.

7. Conduct a minimum of one personal interview with each applicant. Preferably, ask other employees knowledgeable about the position to interview the individual as well.

8. Check the candidates driving record. This is a must for anyone who will be driving a company vehicle or transporting passengers.

9. Make all efforts of employment contingent upon passing a pre-employment drug screen.

These checks should provide you with a thorough understanding of the candidate’s background and ability to succeed in the desired position. But these steps represent just the minimum. You may also consider more standardized tests, such as personality, physical or cognitive ability, or polygraph tests, but those can be expensive and are strictly regulated. Make sure the tests you use are legal in your state.

Dr. Mark wade is manger of human resources for Evans Properties Inc. in Vero Beach, Fla. He can be reached at (772) 234-2410, ext 220, or by e-mail at mwade@evansprop.com

 

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