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Did You Know?
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It costs $7,000 to replace a salaried employee, $10,000 to replace a mid-level employee, and $40,000 to replace a senior executive.
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- Recruiting Times
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The average organization loses more than $9 per day, per employee and 6% of its annual revenue to fraud and abuse.
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- Association of Certified Fraud Examiners
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1 out of 3 businesses will be sued over an employment issue
2 out of 3 new hires will prove to be mistakes within the first year
2 out of 3 employees would rather work somewhere else
9 out of 10 employees will “exaggerate” during an interview
9 out of 10 thefts are committed by employees
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- Bureau of Labor Statistics
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Real Negligent Hiring Cases
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A furniture company was found liable for $2.5 million for negligent hiring and retention of a deliveryman who savagely attacked a woman customer in her home.
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- Tallahassee Furniture Company, Inc. v. Harrison
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An employee with a criminal record sexually assaulted a child; $1.75 million awarded for negligent hiring and retention.
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- Doe v. MCLO
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A nursing home was found liable for $235,000 for negligent hiring of an unlicensed nurse, and entrustment of an intoxicated security guard. The guard had an on-duty traffic accident in a company car which killed him and another motorist.
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- Butler v. Hertz Corp.
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A store customer detained by security guard as a suspected shoplifter and injured while being restrained was awarded $10 million in damages in a suit against the store, claiming negligent hiring.
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- Porter v. Proffitt’s, Inc.
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A $5 million settlement was awarded to the family of a deceased female tenant against the apartment complex owner and management. Tthe suit claimed that the tenant was killed by the brother of the complex’s assistant manager and that it was negligent hiring to hire an assistant manager without a criminal background check.
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- Liebman v. Hall Fin. Group, Inc.
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A vacuum cleaner manufacturer was liable for $45,000 because one of its distributors hired a door-to-door salesman with a criminal record, who then raped a female customer in her home. Manufacturers should have required its distributors to do pre-hiring screening of door-to-door salespersons to prevent hiring of persons with criminal histories
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- McLean v. Kirby Co.
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