- Compliance

- Why Background Check

- Choosing a Partner

- Screening Process

- Dispelling the Myths

WHY BACKGROUND CHECK

 

The cost of hiring, training, and staffing an employee is a company's largest expense. However, the potential costs of not screening each applicant can be even more costly and even bankrupt a business.

 

In 2000, one industry expert stated that the average jury award for negligent hiring was in excess of $870,000.00. In 2004, according to the U.S. Chamber of Commerce, $50 billion dollars are lost annually and 30% of business failure is due to internal employee theft and fraud. Other current statistics indicate that 7% of all applicants had a criminal record in the past seven (7) years, 15% of employment verifications uncovered discrepancies, 32% of driving records had violations or convictions, and 49% of credit reports showed a judgment, lien or bankruptcy, or account that was reported to a collection agency.  For the nominal cost to simply perform a due diligent screening on each applicant, which is typically less than a full day’s pay, to protect your business, your assets, and your employees, doesn't it simply makes sense to incorporate as part of your standard operating procedure?

 

The Benefits of Conducting Background Checks

• Assist in weeding out undesirable candidates who may otherwise lie or falsify their work history, credentials, or criminal past.
• Assist is avoiding placing candidates in positions where they may be tempted to harm the Company's interests.
• Assist in avoiding the potential legal exposure and liability affiliated with a bad hire.
• Assist in reducing the costs affiliated with employee turnover.
• Assist in increasing retention by hiring qualified employees.
• Assist in protection of both the employer and employees from workplace violence.
• Assist in reducing risk for theft and embezzlement.

 

The Costs of Not Conducting Background Checks

• Statistical certainty that employer will hire a unqualified and undesirable candidate.
• Increase in exposure for risk of Negligent Hiring and other potential legal liabilities.
• Increase in company costs involved in the recruitment, hiring, and training due to higher turnover.

 

Conducting background checks on all new hires as a standard business practice is simply money well spent to avoid potential problem employees and disruption in the workplace.