When it comes to personnel management and hiring practices, unwritten rules can lead to avoidable mistakes and, in the worst cases, open up businesses for lawsuits. HR Morning warns that if hiring policies and practices aren’t explicitly written out, a company could be held liable in a court of law.
The website offers a hypothetical scenario for HR managers to use as a barometer for their companies’ practices. Envision a lawyer demanding to know why his or her client wasn’t hired. The company cites the applicant’s admission to a criminal conviction as the reason because they have a policy against such behavior. However, when the attorney asks to see a copy of the criminal records policy, there is no paper trail to be found. The applicant, whatever background he or she may be, then sues the company for race discrimination.
Lawsuits like this are expensive, no matter what the outcome. However, a list of hiring rules can save organizations the hassle and stress of handling costly legal action.
Business Management Daily says that companies should “adopt some basic rules for handling the selection process, and pay special attention to the all-important job description and interview.”
Human resources software could also help companies keep hiring practice policies organized by keeping a database of qualified applicants, tracking open requisitions, and managing current employee information. If a company’s actions are called into question, the software will have clear record of the past.