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Making Hiring Mistakes Can Cost an Agency Dearly

Jennifer had a bright future ahead of her, and your staffing agency was eager to take her on as a client. The consultant in charge of perfecting Jennifer’s resume felt confident that he had lined up several possible positions that offered a lucrative compensation package; Jennifer was bound to be offered at least one of the jobs. The consultant was so confident, in fact, that when his client called Jennifer to request a second interview, the consultant spiked the ball before the referee had declared the touchdown. In other words, he essentially convinced Jennifer, in so many words, that she was a shoo-in for the position: strike one, and your firm could suddenly end up on the road to an employment agency insurance claim for errors and omissions.

Fortunately, another of the potential employers came through with an offer for Jennifer’s services. This was a good opportunity although not the one she had hoped for; still, the consultant told her conspiratorially that the job would be a good move because in his experience, the company had an unwritten policy of always giving new hires a significant bump in compensation after a 90-day trial period. Problem is, the firm in no way made such a promise in its employment package, so Jennifer was unpleasantly surprised to find that her salary would remain unchanged for an unspecified period of time. Her enthusiasm (and productivity) waned after a few months on the job. Strike two, and yet another exposure to a possible claim.

A short time after that, the hiring firm contacts you, angry because Jennifer’s performance—that your firm touted as so amazing—has slipped drastically to the point where she’s being terminated. Both the hiring firm and Jennifer are angry at your firm because they feel each was misled about the other, and both are contemplating filing lawsuits. Strike three, and your firm might just be out if it doesn’t have appropriate coverage.

Get professional advice

Talk to a professional insurance agent about employment agency insurance for your firm. Your agent can tell you more about what is and isn’t covered under the policy and offer helpful advice about training your staff to refrain from using language and behavior that could result in liability for the firm.