The Riskiest Mistake Your Enterprise HR Team is Making

From a young age, we’re taught to go to the doctor regularly to catch potential health issues before they arise. But many people wait until something goes wrong before seeking help. Instead of staying ahead of potential illness, they fall into the trap of thinking they’re invincible. Unfortunately, many companies make the same mistake. In managing their workforce, companies often choose the emergency room approach instead of regular preventative care.

As employee conduct and culture increasingly impact a company’s reputation, those who limit their risk detection to only pre-hire screening may miss critical information about their employee base. According to the Bureau of Labor Statistics, the average employee has a tenure of 4 to 10 years, meaning companies that rely exclusively on pre-employment screening may overlook up to a decade of important job-related issues per employee.

A lot can happen after an employee is hired. A senior-level director may present well during the interview but later engage in public shaming of a colleague. A customer service representative might pass the background check and later embezzle funds from customers. A government employee may successfully complete a lengthy interview and security clearance yet still be found to have engaged in terrorist activity. In each case, the employee displayed red flags that could have alerted the employer to potential issues. Instead, the employer missed the signs and was left asking, "How did we miss this?"

As companies recognize the importance of understanding not just who they’re hiring but also who they’ve hired, they are seeking proactive, data-driven approaches to workforce management. Today, more than 70 percent of companies are turning to online data, realizing that a person’s digital footprint can reveal a lot about their work performance. If not detected and addressed early on, online content can result in brand damage costing millions. So how can an employee’s tweet or online interaction cost companies so much, and why is it crucial to monitor on an ongoing basis?

1. When employees alienate your customers, they can damage your brand.

Whether it’s a new associate or an executive with years of experience, all it takes is one negative tweet to drive customers away. After a CrossFit gym in Indianapolis canceled an LGBTQ Pride-themed workout, their Chief Knowledge Officer publicly applauded the decision on social media. With a substantial LGBTQ customer base, the backlash led to many customers and employees quitting, resulting in the location’s closure and the executive’s dismissal. Had the company understood the potential repercussions of his online content, they could have addressed the issue before it escalated.

2. When employees don’t like your company, they can damage your brand.

A disgruntled employee can resort to slander and defamation, leading to significant legal and PR battles. For instance, Yelp has faced numerous "open letters" from unhappy workers, and Tesla has been involved in lawsuits with a former employee who allegedly leaked sensitive information to the media, threatening the brand’s credibility. Without a proactive approach to understanding their talent, companies risk employees venting frustrations online or leaking private information.

3. Even off the clock, employee actions can come back to bite you.

Employees can cause issues even when not at work. For example, when a mortgage loan services officer posted a racial slur on social media, the public identified her association with a credit union, leading to accusations of enabling discrimination. As a result, the credit union’s ratings on Facebook plummeted, and even two years later, critical reviews from that incident remain.

While initial audits and one-time background checks are helpful, they are no longer sufficient. To protect a company’s reputation and health, a proactive approach to understanding talent is essential. This involves regular check-ups and staying informed about employee behavior to prevent toxic actions. Companies must find new methods of preventative care to ensure a healthy workforce.