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The most important job of any manager or supervisor is hiring. All problem employees and all superstars were at one time or another hired by a manager of the company! The purpose of this guide is to utilize information gathered over the past 30 years as a Human Resource Consultant and share it with you. Some of the lessons were learned at a great cost by employers and others resulted in tremendous increases in revenue. One thing that is absolute, in working with tens of thousands of employees over these many years, trends have been established, trends that once you know what to look for, are not hard to find.
There are two distinct problems in today’s employment arena. The first is a steep rise in administrative regulation of the workplace, whose overlapping mandates (both federal and state) impose significant costs on employers and employees. The second is the explosion of litigation under laws that rely in whole or in part on individual lawsuits for enforcement. Primary examples of such privately enforced laws are the Fair Labor Standards Act, Title VII of the Civil Rights Act, the Americans with Disabilities Act, and the Age Discrimination in Employment Act. Employment litigation has spiraled in the last two decades. The expansion of federal and state discrimination laws and the growth in common law and statutory protection against wrongful dismissal have provided employees with a broader array of tools with which to challenge employer behavior in court. In the federal courts alone, the number of suits filed concerning employment grievances grew over 400 percent in the last two decades. -Complaints lodged with administrative agencies have risen at a similar rate.
Employment litigation is a costly option for both employers and employees. -For every dollar paid to employees through litigation, at least another dollar is paid to attorneys involved in handling both meritorious and non-meritorious claims. Moreover, aside from the direct costs of litigation, employers often dedicate significant sums to designing defensive personnel practices to minimize their litigation exposure. These costs tend to affect compensation of the employees.
Not all lawsuits can be mitigated or eliminated based on hiring practices, however, many can be. When a manager hires an applicant, trains the employee, and then has to fire the employee, what went wrong? More often than not, it was a bad hire. Claims of harassment, discrimination or disparate impact are often directly related to their manager, or another manager within the company and these are usually individuals new to management or new to the company.