A bad hire wastes time and money. There are many costs involved with hiring the wrong person. These costs range from training and interviews to advertising and severance pay. According to The Center for American Progress, businesses spend an average of one-fifth of an employee’s annual salary to replace this individual when he or she leaves. CareerBuilder states that a bad hire can easily cost a business between $25,000 and $50,000.
Bad hiring often happens when a company is in a rush to fill an open position, which can lead to missteps. Rushing the hiring process can cause a company to not know enough about a candidate they hire, and can also cause a company to not perform a background check. Background checks are fundamental in minimizing the risk of a bad hire.
Companies are constantly looking for ways to save time and money, unfortunately, this also includes trying to save while hiring employees. Background checks are often viewed as a hiring cost. However, the value of conducting a background check can outweigh this initial cost, making background checks an investment, not an expense. Background screening is an investment in the future of a company, and failing to complete a comprehensive background check can lead to costly mistakes.
CareerBuilder has found that approximately 58% of résumés include misleading information, such as inaccurate job titles and employment dates. A simple background check can verify the accuracy of employment, education, and criminal histories. These reports provide businesses with facts that cover more than the information prospective employees have provided.
When a business incorporates background checks into their hiring process, negligent hiring liability is reduced and the right hire can be made the first time. Negligent hiring is defined as, “A claim made by an injured party against an employer based on the theory that the employer knew or should have known about the employee’s background which, if known, indicates a dangerous or untrustworthy character.”
If a company hires someone to work with the public who has been convicted of violent actions in the past, the company could be held liable if that person harms someone while under their employment. Performing background checks allows companies to take steps to ensure the safety of their customers and employees. Background checks also allow businesses to focus on growing the business, instead of addressing problems that could later arise.
Many people argue that hiring is the most important aspect of running a business. Every business should have a background check policy in place. Background checks should be consistently performed on candidates being considered for similar jobs.
Businesses should partner with a background screening company that offers the appropriate types of background checks. Armor Background Screeners offers customized search packages that can be modified and fine-tuned to serve your needs—growing and adapting as your company grows.
At Armor Background Screeners, our goal is to help you hire people you can trust. And, while it is impossible to prevent every tragedy, we make every effort to help you hire employees you can trust that will represent your company with honesty and integrity.