Employment risk entails everything that an employee can do, whether intentionally or not, which can cause damage to the employer’s company. So far as it can lead to a prospective loss for the company, it is an employee risk.
Lots of companies overlook or downplay this risk. Employment risk is about giving the right positions to the wrong people. Employees are the backbone of a company. Having even one untrained or uninformed employee can mean increasing the risk to your company. Here are some tips to help ensure you choose the right people to work in your company and equip them with the things they need to succeed and be an asset.
Employment Risk Management Guide
Create a handbook for employees. This handbook should follow all industry guidelines and contain all the information you need your employees to know. The employee handbook sets the tone for the kind of atmosphere your company has. It is very important to regularly update the policies in your handbook to stay in line with changes in the employment laws in your state or country.
Ensure that managers know and understand their rights, responsibilities, and duties. Managers should know the legal and financial implications of their actions.
Create policies and laws that regulate and handle issues of physical and sexual harassment, employee leave and absences, bonuses, and compensations, etc. These policies must be clear, precise, and communicated properly to managers and other employees.
Make sure employees are always informed and educated on security risks related to their jobs and the company in general. If employees travel or move to different job sites, a written description of the risks specific to each job site should be provided to employees who are unfamiliar with an area. This should provide information about that location, how to avoid security risks, and steps that can be taken to stay safe. There should also be an emergency contact given to the employees in case of emergencies. All employees should know the procedures to be followed and the person to be contacted during emergencies.
Proper structure and management during the hiring process of employees are also very important. The hiring process must be formal and fair. The agents involved should be well-trained and not biased. The screening criteria must be precise, fair, and clearly reflect what the company wants in an employee. The process should be meticulous and thorough so that the best people are chosen for each position.
Tips for Mitigating Employment Risk
Employment risk encompasses the possibility of a company experiencing unpredictable loss due to certain factors. The following are a few tips on managing and dealing with risks that are specific to your business.
1. Have a general review of your business with a focus on potential risks.
2. Check for whatever could harm your business
3. Consistently assess the activities in your business, encouraging healthy relationships between employees, clients, and management
4. Create clear business policies that guide and direct the actions of employees
5. Ensure that employees are aware of the types of business risks specific to your company and industry
You can reduce employment and business risks in your business by making use of the suggestions given above. If you’d like help getting a comprehensive policy from the leading business insurers, get in touch with the experts at CF&P Insurance Brokers today at (925) 956-7700. We can survey your business for risks and recommend the insurance policies necessary to fully protect your enterprise.