Insurance companies have become an advertising staple across all media platforms. Whether you’re looking for a “good neighbor” (State Farm), enjoy the exploits of Flo (Progressive) or follow the gecko (Geico) — many of these companies have almost become part of pop culture with their clever and catchy ads.
Everyone thinks about insuring traditional things — your health, your home, your life, etc. But what about insuring your company’s hiring efforts? While there isn’t technically an insurance policy you can purchase for this, there are services and strategies you can put in place to mitigate your risk. What is insurance, after all? A way to mitigate risk.
Let’s look at some things below that can help “insure” better hiring…
Hiring Process Insurance for Your Business
- Applicant Recordkeeping – It’s important to be able to see if an applicant has applied for openings with your organization previously. If he/she did, what did others think of the candidate? Why was that applicant not hired before? Having tools, such as an applicant tracking system, in place to readily see this type of history is helpful.
- Background Checks – While most larger organizations do this as a standard part of their hiring process, many smaller companies don’t. Not only can this type of information prevent a bad hire, but not performing due diligence creates considerable risk for a company. Let’s say your new hire assaults/harasses someone or injures someone while driving a company vehicle under the influence of alcohol. If a criminal background check would have exposed prior tendencies like these and you didn’t bother to run that check, your company’s liability has the potential to increase significantly.
- Reference Checks – For many hiring managers and recruiters, reference checks have become a very painful (and often unproductive) part of the hiring process. Many prior employers will only share basic information like dates of employment or job title — no meaningful information. Usually, this is a reaction to perceived liability for poor references that may lead to a former employee not being hired. However, there are now tools available to automate the reference checking process for organizations and allow references to be much more anonymous with feedback. Don’t skip this valuable opportunity for information — prior performance is one of the better indicators of future performance.
- Employee Assessments – There are lots of tools in the market that call themselves assessments. If you’ve been exposed to some of the poorer pre-employment testing options out there, they can appear to have little value. However, using tools that are well-validated and allow you to profile your current good performers is an excellent way to “look under the hood” to better understand someone’s key traits and characteristics before hiring them. Otherwise, you may not see certain aspects of a person until well after he or she has started working for you.
Just like insurance can’t protect you and your assets from all risks, the items listed above can’t protect you completely from making hiring mistakes. On the other hand, using a consistent process and taking advantage of technology to help automate that process where possible is a great way to dramatically reduce your hiring risk.