Negligent retention of counterproductive employees

Purpose – The purpose of this article is to encourage organizations to recognize the potential risks of retaining counterproductive employees on their payrolls and the steps they should take to prevent and/or correct the situation should it exist within their organizations. Design/methodology/approach – Literature examining a broader definition of the negligent retention doctrine, which includes employees who lack the qualifications for the positions they hold, those who are nonperformers, and/or those who exhibit toxic behaviours, and the consequences for retaining these counterproductive employees on the payroll. By using a multilayered approach, the article discusses the efforts organizations can use to identify potentially counterproductive employee behaviour and the steps the organizations should take to provide appropriate developmental strategies/programs to assist counterproductive employees, as well as, provide appropriate disciplinary action, as the situation dictates. Findings – The review highlights the potential financial drain and performance threats counterproductive employees create for organizations; offers explanations as to why counterproductive employees are often allowed to stay on the payroll; and provides suggestions for preventing the selection of counterproductive employees, for providing appropriate developmental. Practical implications – The article offers practical insights and suggestions to organizations that are interested in upholding their fiduciary responsibility to their stakeholders, while providing counterproductive employees opportunity to improve their performance/behaviours or to exit the organization. Originality/value – The article expands the definition of the negligent retention doctrine to include the often-ignored financial and emotional dangers of retaining unfit or counterproductive employees on the payroll.