Category Archives: MSP / VMS

How an MSP Takes the Risk out of Hiring and Firing

How an MSP Takes the Risk out of Hiring and Firing

risk management

According to recent data, 41% of companies that made a bad hire report that their mistake cost them at least $25,000.  Those costs can skyrocket quickly when a string of bad hires are made, and no company is immune. In fact, Zappos recently calculated they had spent over $100 million on bad hires.  Whether SMB or Fortune 100 company, the costs of bad hires can cut significantly into the bottom line while contributing to additional turnover, impacting productivity and decreasing morale.


Unfortunately, the costs associated with a bad hire can continue long after they have left the building. Some, 60% of employers been sued in the previous five years, 67% of which resulted in a judgment for the plaintiff. The average cost to settle a lawsuit both in and out of court is between $40,000 and $45,000. Mitigating risk is essential to protect your organization from dealing with the cost of a bad hire. One of the most effective ways to protect your company is to work with a managed service provider (MSP) for staffing.


MSPs Can Prevent Bad Hires Through Screenings And Background Checks


Background checks and other screenings can fall by the wayside when your internal HR team is stretched to its limit. However, it is often only through these types of screenings that employers can identify potential issues with a candidate.


Criminal background checks ensure physical and data security, drug screenings ensure productivity, credit checks can ensure financial security, reference checks verify the claims a candidate makes in interviews and various other screenings add additional layers of insurance that the person you ultimately hire has the values and character you’re looking for. The consequences of ignoring this step can be significant to the employer, putting employees, customers and sensitive data at risk.  Most staffing companies provide screenings, but working with an MSP adds a layer of accountability that guarantees those checks are conducted per the terms of the contract.


MSPs Mitigate Risk When An Employee Must Be Terminated


While background checks can help mitigate risk, no hire is ever 100 percent guaranteed to work out. There are myriad reasons why someone identified as a rock star in the hiring process fizzles out once they are on the job. Some candidates are spectacular interviewees, knowing which notes to strike to present themselves as an ideal candidate.  Sometimes, when their true colors show through, they aren’t truly a good match for their role. Other people may experience personal issues that negatively impact their work performance, and still others simply decide that for whatever reason, they aren’t willing to put forth the effort.


Firing an employee is never easy and it can almost always expose the company to risk.  Scorned workers can find many ways to spin their termination as wrongful, even if the company went above and beyond in terms of documentation and performance planning. An MSP works with their clients to help mitigate against the risk that comes with terminating an employee. They will collect the documentation, talk to the employee, handle the actual termination discussion and can often help nurse a worker’s bruised ego by helping them find a new opportunity in the market.


If you are ready to realize the business benefits of working with an experienced MSP to mitigate risk, the team at CSS vSource is here to help. Call us today at 856-222-0020 to learn more about our managed services.

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