Could Your Company’s Recruitment Practices Pose a Liability Risk?

By | July 15, 2024

As an insurance organization you understand risk management better than most businesses. You advise clients on how employment practices pose liability risks, but when is the last time you’ve thought about your own risks, particularly when it comes to hiring and recruitment?

Below are just a few of many stories my team has heard first-hand from people interviewed by insurance organizations. Pause for a moment and think: “Could my managers do or say something inappropriate or illegal in an interview?”

Add Alcohol to the Mix

I once had a client who arranged the candidate’s final interview over drinks.

The idea came from an innocent enough place. The hiring manager wanted to see how the person interacted with others in a social setting.

Unfortunately, it also came with unintended consequences because the candidate felt uncomfortable not ordering a drink, which led them to interpret the situation as a test rather than an interview. Ultimately, it made them question what kind of culture the company really had.

In my opinion, companies and candidates are far better served to keep a more relaxed interview setting to coffee or lunch meetings. — Chris Winterboer, Partner

Make a Big Thing Out of Your Diversity Policy

“I was just telling the girls it would be great to get some diversity in here.”

Think that phrase couldn’t be said by an insurance agency CEO? Think again. There is so much to unpack here, but we’ll focus on the “diversity” bit. The candidate this was said to is a middle-aged white male with a goatee. Yep, a goatee and perhaps as he put it “a shade darker white than some others” was his apparent diversity.

Diversity and inclusion are excellent goals and, while the sentiment was great here, clearly a horrible sentence to utter in an interview. This is not the kind of thing anyone in your company needs to highlight at all. — Kris Gibson, Managing Partner

Form Bias and Assumptions About Working Parents

I was floored when a hiring manager said to my candidate: “If you have children at home this position probably won’t work for you because it requires travel.”

This person made all sorts of assumptions about my candidate’s willingness and ability to balance responsibilities between home and work. Ultimately, this comment conveys a sense that their company is not a good fit for working parents, which damages their potential to recruit a lot of future employees.

There are much better ways to find out how comfortable a person is with regular travel such as: “Are you willing to travel X% of the time?” or “Do you have any obligations or commitments that may interfere with the need to travel for business?” — Amy Stuntz, Search Consultant

Ask About Age. Period.

I had a candidate who was asked during their final interview with the agency’s president: “So, how much runway you got left?”

The agency president clearly came to the interview with concerns about the candidate’s age. Those perceptions were based on assumptions, which are problematic to begin with, not to mention how they broached the subject. It was a clunky way to understand the candidate’s future potential and longevity.

A better way is to ask: “Tell me about your career goals. What do you want moving forward in your career?”

You’ll gain insight on the issues you want without looking like a clown, and perhaps crossing into age discrimination and illegalities, depending on your state. — Kris Gibson, Managing Partner

Mentioning That You Know Their Boss

I had a hiring manager say: “I’m really good friends with your boss.”

This freaked the candidate out, who feared their employer would catch wind of their interview. In my experience, this fear is well-founded. I’ve seen countless situations when insurance professionals were fired when their boss heard about their job search.

Confidentiality is paramount to a job search. Only share what you know about a person’s current employer, not specific individuals, and only in instances where that familiarity gives you a clear recruitment advantage. — Mary Newgard, Partner

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