Why Employers Can’t Afford to Go Without Background Checks

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Why Employers Can’t Afford to Go Without Background Checks

The hiring process already drains quite a bit of time and resources when it comes to advertising open positions, taking the time to find and interview job candidates and then training the ones selected on company policy and procedures.

Some employers are so excited and/or relieved to find a great candidate that they may decide to forego conducting any background checks, but as we’ll find out, this is can be a very costly risk to take.

Save Money by Hiring the Right Person

Due diligence is essential during the hiring process. Employers need to be confident that they know whom they are hiring and that there will not be any surprises down the road. Hiring employees with stronger backgrounds often means reducing turnover rates, which is very beneficial for businesses.

Most business savvy people know that it is much more cost effective to retain existing employees than it is to have to hire and train new employees. In 2011, AARP conducted a study that found that the costs associated with replacing an experienced employee of any age could result in turnover related costs that equal 50% or more of the employee’s salary. These costs grow even higher if the position requires any type of specialization.

The Costs Associated with Negligent Hiring Practices

If the worker turns out to be irresponsible, incompetent, or even violent in the future, the business will lose in more ways than one. The most obvious cost is that the business does not have a productive employee working in a necessary position, and turnover rates will increase. However, the entire business and its consumers will suffer in other ways.

Businesses that do not conduct background checks can quickly find themselves with a tarnished brand. If the wrong employees are hired, they may not perform as needed, they could steal from coworkers or customers, or they could even act in violent or offensive ways while representing the company. If this happens repeatedly, the business is going to struggle to attract new customers and new, quality employees.

Legal Responsibilities Associated with Background Checks

These behaviors are very bad for business and for the image of the company, but they can also have legal ramifications as well. Employers have a responsibility to create a safe work environment and to keep consumers safe as well. If an employee does act wrongfully, as explained by The Huffington Post, and the employer did not perform a background check, the business could be sued for negligent hiring.

The background checks that are required for each business will differ from state to state, and will change depending upon the roles of the employee. For example, a driving record should be acquired for an employee who will be driving a delivery vehicle.

Hiring a Third Party to Conduct Background Checks

It can be difficult to know which types of background checks are appropriate, useful, legal or even required for a particular industry and area. An effective and safe option is to hire an outside third party to conduct these checks, using companies such as Prudential Associates (link to home page) who are experienced and familiar with these processes.

One of the biggest benefits of having a third party investigation team conduct your checks for you is that they can devote more time and energy into gathering necessary and valuable information.

Verifying information on applications and résumés is one of the best ways to identify an honest, quality job candidate, but many employers do not have the time or resources to conduct these verifications. A private investigator could complete the entire verification in very little time. These services pay for themselves over the long-term when the business has experienced and dependable employees.

Sources:

http://www.aarp.org/work/employee-benefits/info-04-2011/what-are-the-costs-associated-with-employee-turnover.html

http://www.huffingtonpost.com/2011/09/15/conducting-a-background-check_n_964560.html