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The Importance of Risk Management in Employment

September 7, 2015 | Staffing Blog

Many companies fail to understand the importance of risk management in employment: if a staffing company fails to conduct proper background checks on its potential hires, or does not provide healthcare for its staffers, the hiring company can (and will) be held liable.

Here is a list of reasons why it’s important to engage in risk management in employment:

  • According to a 2012 survey, nearly 7 out of 10 organizations do background checks on their potential employees. If a staffing firm is to conduct background checks, they should be similar (if not identical) to the ones done by the company they’re trying to staff for.
  • As an employer, the contract between your company and the staffing company should make clear what type of negative information should be revealed (if any — depending on the state you live in, some negative information, such as derogatory marks on a credit report, may not be considered in your employment decision) after the investigation, as well as the basis of approval should it be provided to the company. This places the staffing agency at less of a risk.
  • Finally, and most importantly, bear in mind that neither you as a company, nor a staffing agency as a company, are allowed to break laws when it comes to background checks. The staffing company must also be consistent with their background checks (i.e., what they do for one potential employee, they must do for all potential employees).

Allegiance Strategic is pleased to provide customized staffing solutions for the logistics industry. Contact us today for all of your staffing needs.