Direct Hire Liability Insurance can give your clients in the staffing industry a leg up on protection and coverage. Likewise, keeping in step with the best practices for hiring is integral to their operations. Following best practices helps them effectively fulfill their responsibilities to the employers they represent and protects them against direct hire liability insurance claims. Here are some key things that your clients need to do to prevent lawsuits in the hiring process.
Follow Directives From Direct Hire Liability Insurance Providers
Giving your clients in the staffing industry informative resources about the best practices for managing hiring processes. Work closely with them to assess their procedures. Make it a point to call their attention to issues that do not present a direct violation of relevant state and federal regulations but fall short of best practices.
Helping clients strengthen their processes can substantially mitigate their risk of having to contend with lawsuits, facilitating access to affordable rates for direct hire liability policies.Â
Establish Substantive Policies and Apply Them Consistently
Too many on-the-spot, subjective decisions about handling recruitment functions can increase the likelihood of errors or omissions. Staffing agencies should have clear, unequivocal policies that guide them through each step of recruitment, screening, and extending an offer of employment.
Considering how lawsuits happen during the hiring process, it is vital to consistently recognize the importance of following internal policies. Staffing agencies must not deviate from internal policies and legal regulations in any circumstances. When staffing agencies treat applicants in a manner that varies from relevant standards in any way, it can create the appearance of unfair or discriminatory treatment.Â
Even if a hiring manager does not knowingly intend to discriminate against an individual, the mere perception of unfair treatment could precipitate a lawsuit. Litigants do not have to prove discriminatory intent for their claims to prevail. Ultimately, having coherent policies and adhering to them without exception can help agencies avoid lawsuits alleging unfair or discriminatory conduct.
Convey Expectations to Applicants Clearly and Accurately
Agencies must be conscientious about preventing claims involving misrepresentations in the hiring process. They should cooperate closely with clients to generate detailed, straightforward job descriptions. They must also be transparent about compensation and benefits.
Screen Applicants Carefully
Staffing agencies must utilize exhaustive screening criteria to avoid problems with business clients and avoid claims against direct hire liability insurance coverage. Mistakes or omissions could result in hiring applicants unsuited for the job roles the staffing agency needs to fill.
Agencies must check applicants’ backgrounds, confirm work authorizations, and verify previous employment. It is also advisable to check references, and it may be helpful to administer skills tests for specific job roles.Â
It is important to note that hiring managers must avoid asking job applicants impermissible interview questions. What may seem like small talk may instigate perceptions of discriminatory treatment.
Lastly, agents should counsel their staffing agency clients about the indispensable utility of direct hire liability protection. This safeguard can serve as a vital contingency to address allegations arising from the hiring process.
About World Wide Specialty Programs
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (877) 256-0468 to speak with one of our representatives.