Negligent Retention

What is negligent retention?

Negligent retention happens when an employer fails to take action to address an employee’s behavior, even when they knew—or should have known—that the employee poses a risk to others. Employers are responsible for ensuring safety in the workplace and addressing concerns about an employee’s conduct promptly.

For instance, imagine an employee reacts aggressively to a supervisor’s question. If this behavior escalates and leads to harm caused to a coworker, the employer may be held accountable for not taking disciplinary actions earlier. This includes situations where inappropriate behavior is displayed outside work, such as on social media.

Employers need to monitor employee performance and take action when concerns arise, ensuring the safety of team members.

How to avoid negligent retention?

Negligent retention happens when an employer keeps an employee whose behavior poses a risk to others, despite being aware of the issue. Here are practical steps to prevent it while maintaining a healthy workplace environment:

1. Establish clear policies and procedures

Define clear policies and procedures for employee conduct. Ensure every team member understands the expected behavior through the onboarding process. This sets the tone for a company culture that values accountability and professionalism.

2. Conduct thorough background checks

Before hiring an employee, conduct detailed background checking. This can help identify any history of harmful behavior, negligent hiring risks, or legal issues. Hiring an employee without this step increases the chances of negligent retention.

3. Monitor employee performance regularly

Use performance evaluations to track employee working habits and conduct. This helps human resources identify potential issues early and take action when needed. Encouraging employees to perform better should be an ongoing process, helping them stay aligned with company goals.

4. Address red flags immediately

If any concerns or red flags appear during employment, handle them promptly. Whether it’s complaints and concerns from other employees or signs of poor behavior, act quickly to ensure the safety and well-being of your team members.

5. Provide regular employee training

Offer consistent training to reinforce your policies and procedures for employee conduct. Training can cover essential topics like sexual harassment prevention, workplace safety, and recognizing potential risks. This empowers employees to engage responsibly.

6. Have a system for complaints

Create a safe and transparent procedure for employees to report complaints and concerns. Employees should feel confident that their voices will be heard without fear of retaliation. This improves employee satisfaction and fosters trust in your organization.

7. Investigate and take appropriate action

Investigate all complaints thoroughly and in real time. In cases where a disciplinary action or even the need to terminate an employee arises, ensure decisions are supported by accurate records and legal counsel.

8. Keep detailed records

Maintain detailed records of performance evaluations, incidents, and resolutions. This documentation not only protects your organization but also helps improve processes to encourage employees to thrive.

9. Prepare for emergencies

Have an emergency response plan in place. Whether it’s addressing workplace safety issues or dealing with unforeseen events like violent incidents, preparation is key to protecting your workforce.

By taking these proactive steps, employers can reduce the risks associated with negligent retention. A strong focus on monitoring employee performance, addressing concerns, and fostering a positive company culture ensures employees feel valued and motivated while protecting the organization’s reputation and legal standing.

What is the difference between negligent retention and negligent hiring?

Negligent retention and negligent hiring are both terms used to describe employer liability, but they focus on different stages of employment and responsibilities.

Negligent hiring happens when an employer fails to properly screen candidates before hiring an employee. This could include skipping essential steps like background checking, verifying education or work history, or checking references. If this oversight leads to hiring someone who causes harm, the employer may be held liable.

On the other hand, negligent retention is about an employer failing to act after issues arise. If an employer is aware—or should reasonably be aware—that an employee poses a risk but doesn’t take action, they might face liability. For example, ignoring complaints and concerns, failing to monitor employee performance, or not addressing repeated misconduct can lead to negligent retention claims.

In simple terms, negligent hiring focuses on the employer’s responsibility before someone joins the team, while negligent retention is about managing risks once an employee stays on board.

Employers can reduce risks by implementing a solid onboarding process, regular performance evaluations, clear policies and procedures for employee conduct, and by encouraging team members to voice concerns. Regular employee training on topics like sexual harassment and workplace ethics can also foster a safer company culture.

Human resources teams should stay proactive in addressing red flags, using tools like exit interviews, disciplinary actions, and legal counsel when needed. Ensuring employees feel valued while maintaining accountability is key to preventing these liabilities.