Negligent retention is when an employer fails to take action after learning that an employee has violated workplace policies. This can result in serious consequences for both the employee and the employer.
Employers must take action when they learn about violations of policy. When an employee is found to have committed a disciplinary offense, the employer must investigate and then take appropriate action, including termination if warranted. If you are an employer and have been notified of any violations, it is important to understand what negligent retention means.
Keep reading to find out what negligent retention is and how to avoid it.
Table of contents
What Is Negligent Retention?
Negligent retention is the failure of an employer to terminate an employee when they knew or should have known, that the employee posed danger to others. Employers are required to take action when they have concerns about the appropriateness of one of their workers after the person is employed, even though no company can ensure that every employee is mentally stable and does not constitute a threat to the safety of others. This includes the employee’s actions when not working, such as publishing hostile remarks on a social networking platform.
For example, an employee erupts after a supervisor asks why he is late. Although the employee stops yelling and making threats after a few minutes, the supervisor is surprised and worried about the employee’s reaction. A week later, the same employee fights with a co-worker, causing the co-worker an injury requiring hospitalization.
In the situation above, the employee whose reaction was extreme should have been disciplined and removed from duty until the supervisor was confident the employee posed no risk to others.
What Are the Results of Negligent Retention?
Negligent retention refers to a situation in which an employer is deemed liable for retaining an employee who is known to pose a risk or danger to others, and that employee subsequently causes harm to another person due to their actions or behavior.
In such cases, the employer is accused of negligence for failing to take appropriate action, such as terminating or disciplining the employee, despite knowing their problematic behavior or history.
Company reputation and morale are also impacted by an employer’s failure to remove an employee who poses a danger to others.
- Harm to others: In extreme situations, negligent retention may involve life-threatening (or worse) injuries to others. Other types of harm may include violence, harassment, and theft.
- Legal and financial: The time to defend claims of negligent retention and the costs involved, including legal costs, is expensive. Determining liability may include medical expenses for injuries, pain, suffering awards, and punitive damages.
- Company reputation and morale: Even one negative instance of a company failing to protect its employees and customers may create significant reputation, brand, and morale fallout.
- Productivity: Productivity losses resulting from careless retention situations might be significant. Employee involvement as witnesses and manager involvement in damage control may take priority over the company’s activity. Even those without a personal connection to the incident may feel less secure at work, reducing productivity. In some circumstances, workers could depart for a place they think is safer.
You may want to find out What is a Lump Sum Payment? All You Need to Know
How To Avoid Negligent Retention
To avoid negligent retention and its potential legal, financial, and reputational consequences, employers should take proactive steps to identify and address employees who may pose a risk or danger to others. Here are some strategies to help prevent negligent retention:
Step 1: Hire Carefully
Being careful when screening candidates before offering employment is the best way to ensure employees are well-suited. Hiring carefully is the best way to prevent most problems before they happen!
Step 2: Establish a clear hiring requirement Policies
Clearly define the qualifications, skills, and attributes required for each position to ensure that candidates meet the necessary criteria.
Related Post: What is the Equity Theory? All You Need to Know
Step 3: Establish a clear work policy and culture
Companies should have clear rules that outline expectations and forbid unprofessional conduct in the workplace. It’s crucial to be explicit when describing inappropriate behavior. Think about adopting a zero-tolerance approach to violence. These policies should be included in the employee handbook, which every employee should receive, accept, and go through training to comprehend fully.
In addition to formal policies, companies must be specific about complaint procedures when policies are violated. Complaint procedures should include multiple avenues for reporting so employees aren’t limited to their next in command. Open-door policies are often helpful in encouraging employees to come forward.
Step 4: Train Supervisors
Every supervisor has to be taught how to react when unwelcome behaviors arise at work. Supervisors frequently take no action when they are unsure of what to do. Swift action is essential when staff members are predisposed to violence or other grave behaviors.
Step 5: Create Room for Report and Feedback
Establish mechanisms for employees to report concerns or incidents related to other employees’ behavior. Ensure that these reporting channels are confidential and easily accessible.
Step 6: Thoroughly Investigate
Following the guidance of your legal counsel, interview anyone who may be involved in or witness an event. Make detailed notes and preserve all electronic records. It may be advisable to suspend an employee accused of causing harm during the investigative process. Suspension can be a great tool to further an investigation without interference, which is helpful for all involved.
READ ALSO: What Is Consulting & What Do Consultants Do? | 2023 Career Advice & Interview Tips
Step 5: Take Appropriate Action
Take action, then note it. Determine the right course of action under the regulations in your employee handbook. There are several instances where the wrongdoer should be fired. In some other cases, a written warning, an unpaid suspension, a demotion, a team change, enhanced monitoring, and further training on the organization’s anti-harassment and respectful workplace practices might be more suitable.
Suppose this is not the first instance of inappropriate behavior on the part of the employee. In that case, you should also consider if the behavior escalates in severity or if there is a problematic pattern. If one instance alone isn’t severe enough to warrant termination of employment, multiple instances may indicate a bigger concern.
SEE ALSO: What is Retro Pay in an Organization? | Explained
Examples of Negligent Retention
Negligent retention can take many different forms. Here are a few common examples.
Verbal Threats
An employee threatens others verbally yet is not reprimanded. Later, the employee follows through on his threats.
Sexual Harassment
When an employee sexually harasses someone but isn’t fired. The employee later engages in sexual harassment.
Assault with a Weapon
An employee brings a weapon to the office but isn’t terminated. The employee later injures someone.
Theft
An employee is arrested for theft but allowed to keep his job. Then, that same employee steals from a client while on a work-related visit to the client’s home.
Negligent Retention vs. Negligent Hiring
Negligent retention and negligent hiring are similar in that both involve an employer’s negligence in retaining or hiring employees who risk harm to others. Negligent hiring usually occurs because the employer did not conduct appropriate pre-hiring screening activities and hired someone they should have known could be unfit for the position.
Negligent retention enables workers to stay on staff despite indications that they are inappropriate. Negligent retention also includes failing to transfer an employee when there is a risk of damage, enforcing appropriate sanctions when an employee engages in inappropriate behavior, and not keeping an eye on someone whose actions call for careful supervision.
READ ALSO: What is a Notice Period? What is it used for?
FAQs On Negligent Retention
Negligent retention is a legal concept that refers to the failure of an employer to take reasonable action to remove or address an employee who poses a known risk of harm to others, such as coworkers, customers, or the general public.
Negligent retention can lead to various types of harm, including physical injuries to employees or customers, emotional distress, damage to the company’s reputation, financial losses, and legal liabilities.
If a plaintiff is successful in a negligent retention lawsuit, they may be awarded damages for various losses, including medical expenses, emotional distress, lost wages, pain and suffering, and more.
Conclusion
Negligent retention has been shown to lead to increased business risk and loss. It can lead to increased litigation costs and deterioration in employee morale and productivity. It may also lead to reckless employee behavior, which could put the company at risk of injury or sabotage.
References
We Also Recommend
