Hiring the wrong person can have serious implications and can negatively impact the financial well-being of any company or organization. Everything from your employees or volunteers to your property and proprietary information could potentially be at risk if they’re accessible to an individual with a history of criminal violence, theft, drug use, or fraud.
Background checks can improve your chances of hiring the right employee for your organization.
Reduction in turnover rates
Better understanding your candidates helps you pick the “best fit” person based on the position, qualifications, and more, which helps reduce turnover.
Protection for your organization
Performing pre-hire or residence backgrounds checks and annual rescreens helps reduce the legal risk related to negligent hiring and retention. Under the premise of negligent hiring, employers can be held liable if they do not use reasonable care when hiring employees and one of those individuals later commits an act that risks the welfare of others.
Why spend the time and money to perform a criminal background check?
More than 50 percent of employers from the world’s top 10 largest economies said that a bad hire has negatively impacted their business, leading to:
• Significant revenue loss
• Lost productivity
• Negative employee morale
• Negative client relations
• Increased costs to re-hire and train a replacement
The combined effect of these issues stemming from bad hires can dramatically increase the negative monetary consequences to companies. This is true for the lowest paying jobs as well as the higher end of the spectrum. An employee who makes $18,600 can cost a company $25,000** to replace. Even Tony Hsieh, CEO of Zappos, has stated that bad hires have cost his company more than $100 million.
Protect People makes the background check process incredibly simple for companies and organizations and has packages to fit your budgetary needs. Learn how we can help protect your people and your business.
*Source: August 2014 survey of 592 First Advantage customers performed by TechValidate
**Source: National Business Research Institute (NBRI)