Negligent Retention: the consequences employers may face

negligent hiring, except it refers to employees who currently work for you rather than those you are thinking of hiring. One example of negligent retention is when an employer ignores rumors of sexual harassment within the office. Eg – several employees have confronted the employer in regards to a particular employee’s continued aggressive remarks to another employee. Yet the employer continues to ignore these claims given that the purported harasser is the lead salesmen and it would be too costly to replace him. After a couple of weeks an employer claims she was assaulted in her home by the salesman at her company. She has evidence of the salesman’s fingerprint as well as a hair sample. The employer is charged with negligent retention because he did not investigate by asking the employee originally if the allegations were true and intervening properly. While negative retention can jeopardize the safety of a company’s employees, it can also jeopardize it’s financial profitability. If an employer is informed by the human resource department that an employee in accounting did not complete all her required Certified Public Accountant classes, but decides to ignore this information because the accountant is a family friend, then negligent retention is present. After a couple of months it becomes apparent that certain clients have not been receiving their checks which has resulted in numerous accounting fees. Because the employer did not investigate and act accordingly to the human resources information, the money to alleviate the accounting fees will be covered by research and development funds. The release of a new product will now be prolonged because of this case negligent retention. It is clear that negligent retention as a very serious matter and can have detrimental consequences in a variety of ways. That is why it is important to perform not only a sufficient pre-employment background check, but also post hire checks. This recurring screening process can ensure the merits you initially hired your employees on are not compromised with time. It is much easier to avoid negligent retention by keeping an updated profile on employees. Mind Your Business is happy is answer any inquiries you might have on negligent retention, so feel free to get in touch!  ]]>