Why is Risk Management Important in Today's Work Environment?

Risk management is important in today's work environment for several reasons. For one, employer negligent hiring lawsuits are on the rise. Failure by employers to conduct background checks and screen employees can have serious consequences. It is the obligation of the employer to provide all employees with a safe working environment. If employers fail to use reasonable care and choose to hire someone that they either knew or should have known presented a risk or harm to an existing employee, the employer is liable and can be sued for the actions of that employee.

Consider these incidents that resulted from inproper hiring techniques:

· A $750,000 judgment against a renowned car rental company was awarded to an employee who was attacked by a co-worker. Management failed to verify information on the attacker's employment application. He had indicated he was in college during a specific time period, when he actually had been serving a three year prison term for robbery.

· In the case of Smith v. Amtrak, an employee was awarded $3.5 million after being shot by a co-worker. The attacker had a history of violent behavior.

· An employer was held liable for the negligent hiring and retention of a sexually aggressive employee with a criminal record who subsequently raped a female employee.

One of the main reasons why risk management is important as it relates to crime in the workplace is that 26 percent of all applicants have a criminal record. 67 percent of criminals released from prison are re-arrested within three years after their release. 70 percent of illegal drug users have full-time jobs. On average, 1.7 million violent incidents per year are committed against employees at work. There are approximately 900 workplace homicides each year. Nearly 48 percent of on-the-job injuries can be attributed to alcohol and/or drug abuse. Approximately 10.4 billion per year in theft can be attributed to retail employees.

Litigious Predators are Another Reason Why Risk Management Is Important
The most common type of lawsuits facing U.S. companies today are:  Sexual Discrimination, Negligent Hiring, Sexual Harassment, Race Discrimination, Age Discrimination, Wrongful Discharge, and Wage & Hour. The financial exposure and costs of dealing with disputes is very costly when proper background checks and screening of employees is not done. Arbitration can cost $50,000 - $100,000 and the average settlement is usually more than $1.6M. Employers lose approximately 60 percent of all employment jury trials.

Why is Risk Management Important...Your Company Depends On It
Now, more than ever, it is essential to probe into the litigious tendencies of all applicants and identify predatory behavior. Alar Staffing Corp. is a premiere staffing agency specializing in placing light industrial workers in companies throughout Southern California. Alar has been implementing proprietary risk management tools since 1989. All of our applicants go through an extensive screening process. Additionally, all applicants complete our proprietary 4-point identification process to verify the person's true identity. After the true identity is established, a thorough criminal background check is conducted.

Alar Staffing Corp. takes the risk out of using an employment agency. Contact us today to discover how we can work with you to provide light industrial workers for your production line. We look forward to speaking with you at 888.611.ALAR.