Talk Isn't Cheap: The Legal Risk of Relying on 'Word of Mouth' Recruiting — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Talk Isn't Cheap: The Legal Risk of Relying on 'Word of Mouth' Recruiting

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Does your organization recruit via “word of mouth?” While companies may be spending less on recruitment efforts during these difficult economic times, be careful. A new court ruling says that relying too heavily on this hiring tactic could, in fact, trigger a discrimination lawsuit …

Case in Point: Daryal T. Nelson applied for a Wal-Mart truck driver position but was rejected. He sued for racial discrimination under the federal Civil Rights Act of 1964. His main complaint: Fewer minorities were hired due to the company’s word-of-mouth strategy for hiring drivers.

Under company policy, Wal-Mart recruited its approximately 8,000 drivers almost exclusively through having its current drivers distribute “1-800 cards” to potential applicants. The card lists the minimum qualifications for drivers and provided a toll-free phone number to call for an application.

In addition to handing out recruiting cards, current Wal-Mart drivers also...(register to read more)

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{ 1 comment… read it below or add one }

tim July 4, 2011 at 3:28 pm

i worked for a company for 17 years..its called mclane company.. i informed my supervisors of a family hardship and my need to transfer to a division closer to family.. after 8 months of being told no an hardship getting worse i resigned and took care of my parents life ending crisis.. After they passed, the division that would not take me at first started to hire again.. i went to talk to them and they told me they would never consider hiring me as they had not heard anything good about me from my former division….do i have any recourse?


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