Ralph Jacobson

A New Problem on the Horizon: Negligent Retention

February 23, 2010

FROM RETAILWIRE:
From a legal standpoint, most employers take pains to avoid hiring the wrong person: negligent hiring. Now, with turnover down because employees are staying in jobs just for the job security, the bigger problem could be negligent retention. How should retailers manage negligent hiring and negligent retention situations given the threat of lawsuits?      [more...]

Huge number of conflicting issues here: 1) The hiring process: Few people know how to truly execute an effective hiring interview. Most hiring managers talk too much during the interview. Then, many discount potential adverse characteristics that surface during the interview. Remember, people don't change. If there's something that rubs you the wrong way, DON'T HIRE THEM. 2) Contractors vs. employees: You can fire employees just as easily as you can contractors with the most common employment contract: "At-Will Employment." HOWEVER, contractors will have less loyalty to you if a better offer comes along... and contractors are ALWAYS looking for better offers, as opposed to permanent employees, and 3) In the retail world we have unions which change the game completely. The best case scenario is to work the unions to modify future contracts to support productive employees.