I was fortunate to attend this year’s Professionals In Human Resources Association | PIHRA #CAHR convention in Anaheim. The content, sessions, and networking shared a strong focus on the intangibles of employee management, including
- #burnout prevention
- culture development
- and all-around wellness including financial and #mentalhealth.
Several sessions also addressed the evolution of employment for this year and beyond such as new state regulations and tidal—possibly trending—shifts in workplace culture such as the 4-day workweek. Of course, it wouldn’t be a conference in 2024 if the impact of AI on the industry wasn’t also a hot subject.
Most importantly, this year’s CAHR conference had several sessions that emphasized the importance of smart hiring practices and the detrimental costs of bad hires.
Did You Know: Hiring and Background Checks
Hiring the wrong employee can easily drive negative ROI, a total turnover costs can be up to 1.5 – 2.5 times the employee’s salary. The highest churn industries such as retail, tech, call center and fast food together account for billion in direct and indirect costs.
Beyond financial losses, bad hires can lead to significant legal liabilities due to negligent hiring practices. There’s plenty of case law to back this: there was a $23 million jury award for a company failing to review a trucker’s driving record, which underscores the importance of thorough background checks and due diligence in the hiring process. In another instance, a communications business was hit with an unprecedented $7 billion (yes, with a B!) in punitive damages for failing to adequately vet an employee who later committed a serious crime.
Since all 50 states support legal action regarding negligent hiring with the average cost to settle being around $1 million, it’s more important than ever for employers to be diligent about checking employee backgrounds. The costs associated with #backgroundchecks may have decreased over time, but new legislation restricting when and how employers can ask about criminal backgrounds (”Ban the Box” laws) make ensuring a clean hire all that more challenging. This means that using a uniform application across multiple states is risky at best, and choosing a reputable 3rd party background check firm is of paramount importance.
Background checks should include contacting both former employers and professional references (being mindful of what questions are asked), verifying licensure and certification with the respective issuers, checking criminal records, and screening for drug/alcohol abuse.
Assessment Tools Having a Moment
Personality assessments, such as Myers & Briggs Foundation and #DISC, are increasingly popular tools in the hiring process. They provide valuable insights into a candidate’s personality and how they might fit within the team. While these tests have their limitations, they can be instrumental in making informed hiring decisions when used correctly.
In conclusion
The 2024 CAHR convention underscored the critical importance of holistic employee management and strategic hiring practices in today’s evolving workplace. By focusing on employee wellness, staying informed about new regulations, and understanding the profound impact of AI, businesses can create a resilient and thriving work environment. Moreover, the conference highlighted the significant financial and legal repercussions of poor hiring decisions, emphasizing the need for comprehensive background checks and the prudent use of personality assessments. As we move forward, prioritizing these aspects will not only safeguard organizations from costly mistakes but also enhance overall employee satisfaction and productivity, driving sustainable success in the long term.
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