Risk Management for the Recruitment Industry
Recruitment Agencies should manage their risks, just like any other business. But there are particular risks that the recruitment industry faces that other businesses do not. Here’s a break down of those risks.
Slips & Trips
As with any other business, employees or members of the public (for example, when candidates attend your offices for screening) may get injured or become ill. Ensure that you have completed through risk assessments for your office space and any other activities that your staff do, or members of the pubic are involved in.
Getting Things Right!
You’re a professional and when operating you should do so with reasonable skill and care. If a client, candidate of anyone else that you work for suffers loss due to you (or your employees) not acting with due care or skill in your capacity as professionals, you may be liable. Ensure you’re diligent in your processes and procedures to avoid professional claims.
What would happen if you place temporary workers and they steal or act fraudulently and cause damage or loss to your client? Depending on your contract, you may be liable for the damages. Ensure that you thoroughy understand your contracts and have them reviewed by industry experts, if possible. Don’t let one bad placement ruin your reputation!
Once you’ve placed a candidate, they are your client’s responsibility, right? Not necessarily. Again, this depends on your contracts. If you place a candidate who then causes a loss for your client, you may find that you are liable for these losses. Make sure you are diligent when screening candidates and that you know where your contractual liabilites lie.
Data & Confidentiality
The chances are that your recruitment agency is bound by some degree of confidentiality agreement with your clients. And you are most certainly bound by the Data Protection Act. You should assess the risk of a breach of confidentiality or data protection law and ensure there are processes in place to reduce these risks. After all, how easy is it to send the wrong CV or job spec to the wrong person?
RecruiterCover provides specialist recruitment agency insurance and has been doing so for 10 years. We support our clients with extensive risk management support and offer a free contract vetting service to our clients.