An Effective Method to Minimize the Possibility That a Prior

question 12

Multiple Choice

An effective method to minimize the possibility that a prior employer of a prospective employee will refuse to provide a reference on the grounds that a reference can give rise to defamation liability is

• A) to require all prospective employees to sign a document releasing former employers from liability for providing references, and providing a copy of the release to prior employers from whom references are sought.
• B) conduct reference checks secretly.
• C) have the references checked by an unrelated third party.
• D) check only references that are adequately insured against defamation.

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Definitions:

Productivity

A measure of efficiency that calculates the amount of output produced per unit of input, such as labor or capital.

Signaling

An action taken by an informed party to reveal private information to an uninformed party, often seen in job markets and education.

Compensation Scheme

A plan or system used to determine how to compensate or reward employees for their work, including wages, benefits, bonuses, and other forms of payment.

Efficiency Wage

A salary set by employers above the market equilibrium to increase productivity, attract high-quality employees, or reduce turnover.