Saturday, November 21, 2009

Using Social Networking in Risk Management and Human Resources


Social Media has created many risks, but also many opportunities for businesses, if they are mindful in how they utilize it properly. One area in which social networking can provide a great tool for risk mitigation is in your human resources department. When a company decides to begin their hiring process, they are exposing themselves to a set of risks which are not easily controlled. The more people who you expose yourself to, the more people there are that can possibly take legal action against you. Asking the wrong question in the interview process could end up creating a legal problem for your company. However, making a bad choice in the hiring process, especially for a small company, can have an even greater effect on the business. No one wants to hire a partier or an antagonist. At ALC Risk Solutions we provide our clients with insurance solutions for human resources, like Employment Practices Liability Insurance which will cover your company for law suits dealing with wrongful termination, harassment and discrimination. But, we also believe that "an ounce of prevention is worth a pound of cure". Risk management is that prevention, and social networks are one of our tools.

The problem is that as an employer you are limited in regards to the personal questions you can ask a potential hire. That is where tools like Facebook, Twitter, MySpace and others become your best friend. I'll give a recent anecdote to explain. We recently finished our search to find a nanny after many weeks for our 9 month old daughter. We had been using to really great websites that are available for finding care givers, SitterCity.com; and Care.Com. They are both great website, and I highly recommend them. Care givers post their profiles, resumes, references, pictures, ect, on this site, and you can contact them and set up interviews. They even make it very simple to get comprehensive background checks through the websites. We met with a bunch of great candidates. In the end we were torn between two ladies. One was slightly older, and didn't speak English (my wife is fluent in Spanish, I'm not) and the other was a recent college graduate. The younger one really impressed us. She was going to do yoga with our 3 year old, and she was really into healthy eating and exercise, and just seemed like a lot of fun.

Later that night, I searched her email address in Facebook, and I saw many red flags that made our decision for us. It was not that she occasionally went out to bars, or anything like that, everyone is human. No, she was a proud supporter and apostle of Professor Timothy Leary and Hunter s. Thompson. These are the two individuals that are best known for their encouragement of the use of hallucinogenic drugs like LSD and Acid. Not exactly Mary Poppins.

Needless to say we hired the other lady.

Social Media needs to be used in your business's hiring process as well. Facebook allows users to control their privacy very well. However, many of the people that should keep their lives private chose not to. Twitter will give you less information, but although there are privacy settings, few people chose to utilize them. MySpace is less known to me, but from my understanding the user decides what the public can see, and what only their contacts can see.

A few do's and don'ts with using Social Networking in the Human Resources department:

  1. Don't friend a potential hire because their page is private – I don't know the legal ramifications, and they probably haven't been played out yet, but doing so, and using that information against them, could create a law suit
  2. Don't tell the candidate that they were not hired because of their facebook page, and do not tell employees they were fired because of their facebook page. Recently a teacher was fired because of pictures she posted on her facebook page. Read the Washington Post Article Here. Now they are being sued. There were no grounds to dismiss her for that, so dismiss your employees for a different reason if their private facebook page bothers you that much. Likewise, just the tell the person, "The position has been filled". End of Story.
  3. Do a Google search on the candidates. You would be surprised how much information everyone has out there. Do a Google Web search, do a Google Image Search. If they are in a regulated industry, like insurance, go to your State website, like the Florida Department of Financial Services, and make sure they are licensed like they say they are. Even do a search of your State's division of corporations. Maybe they were an officer of a previous company, maybe they still are.
  4. Do a background search on your finalist. You can use websites, but you should really hire a qualified private investigator. My go to guy is Rich Bragassa, from Rich Bragassa and Associates. He's basically an information broker and a risk avoidance specialist.
  5. Lastly, Don't forget that everyone is human, and you want to hire a human. It's ok if there are some questionable things, you just don't want full blow Category 5 Red Hurricane Flags. If someone is so boring that they've done nothing wrong, you, a half delinquent in your younger years, probably won't get along with the pious individual.

For more risk management tools and insurance, including Employment Practices Liability Insurance, contact Andrew Cohn of ALC Risk Solutions at (786) 664-RISK (7475)

Tuesday, November 17, 2009

Status Updates – Where You Are…And Where You Aren’t

Status Updates – Where You Are…And Where You Aren't


 


 

Account    Miami Business Networking


 

Going forward with my blog for ALC Risk Solutions I am going to start blogging about different things people can do to mitigate their risks and their business's risks. As an insurance agent my job is to analyze what a company is doing, and try to figure to out how to control their risks a variety of ways. The easiest way is risk transference; this is done by purchasing insurance. But, the cheapest and most effective ways are risk mitigation, and risk avoidance. You cannot simply avoid all risks, but there are a few things you may not have thought about that you can do, and can stop doing to lower your risks.

The first thing is regarding social networking. Social networks like Facebook and Twitter are great ways to communicate with friends, reconnect with old friends, and promote your business. You promote your business through status updates, and sharing notes and comments about your everyday life. The problem occurs when you start telling people where you are through these status updates. Blackberrys and iPhones have made it very easy to update everyone, but I really caution everyone to stop updating where they aren't.

For example, if you tweet, "On my way to the Miami Hurricanes game". You've told anyone that wants to know, that you are probably not going to be home for another 4 hours. A crook could use an application such as Tweet Deck to update them whenever anyone on Saturday says they are going to the game. They could then find your name, and do a search on the property appraisal's website. If you are a homeowner, they now know where you live. And thanks to your tweet, they know you aren't there.

Status updates aren't the only way to tell people where you are. Twit Pic and uploading pictures to facebook from your mobile phone can also give it away. My recommendation is to keep your tweets from divulging your location, and keep your Facebook and MySpace Pages private. I will have more Risk Mitigation tips coming soon regarding why to keep your facebook page private. You can find out more about ALC Risk Solutions at www.alcrisk.com and you can email me, Andrew Cohn at acohn@alcrisk.com or call, (786) 664-7475.