Welcome to Part 2 of our 3 Part blog series on Background Screening Trends. Be sure to follow us on Facebook, LinkedIn, or Twitter for weekly trends. This week we are addressing the trends about why and when we background check.
Protecting Your Organization
The top reason organizations run background checks is to protect their employees, clients, and customers. This trend has been the standard in motivation for checks over the last several years. But there are several other reasons (including safety) why organizations background check.
Reason 1: To keep your workplace and employees safe. There are numerous stories out there regarding predators in the workplace. Take this instance on how a comprehensive background check could have prevented damage to this company and their employees. Bankruptcy. Fraud. Insider Trading. What could be lurking in your employee’s past? Check out this blog on White Collar Crime and the Federal Criminal Search.
Reason 2: To avoid negligent hiring liability. Negligent hiring is a claim made against the employer by an injured party. The injured party claims the employer should have known the individual’s history. See this example where a jury awarded a $1,000,000 verdict. To avoid negligent hiring, you should perform a comprehensive background check, be consistent, and look for red flags.
Reason 3: To increase new hire quality. Uncover intangibles not found on the resume through a personal or professional reference. Confirm education and licenses to ensure the candidate is qualified. Find employees with a good track record of longevity. These strategies will help you in your search for quality candidates.
Reason 4: To reduce losses. You may feel that it is a waste of money to background screen potential candidates and current employees, but just think of the money you will save in potential litigation. Something else to consider is an employee/candidate that has access to money and a criminal record of theft poses a potential substantial threat to your bottom line.
Reason 5: To avoid negative publicity. Bad publicity can have a damaging impact on your company. Most workers would not apply to a company with negative press. Maintaining a good reputation starts with the people you hire that inevitably represent your company and brand.
Background Checking Beyond the Full-Time Employee
Most employers screen both full-time and part-time employees. The trend is increasing to screen contractors and volunteers, but it is not as significant. According to a recent PBSA survey, full time employees on average are background checked 90% of the time. Where part-time employees are background checked 83% of the time. The percentage takes a significant dive at contract employees being background checked 59% and volunteers at a low of 44%. Let’s explore why it is a mistake not to fully screen all individuals in your organization.
Volunteers, contractors, and part-time employees can be just as damaging to an organization as a traditional full-time employee, posing risk to those served as well as the organization itself. Why risk the safety and wellbeing of your organization?
Not background checking all individuals in your company runs the risk of a bad hire. But what is a bad hire? A bad hire is a new employee who possesses one or more of the following behaviors: consistently negative, not meeting quotas, not producing high quality work, or does not have the skills claimed during recruitment. They could be negatively impacting your organization by decreasing morale and employee engagement, losing customers, or participating in financial crimes like embezzlement or theft.
The financial impact of a bad hire can be tremendous. Recruitment, job postings, relocation, onboarding, training, lost customers, and litigation expenses are just a few examples of what a bad hire can cost your organization. Jörgen Sundberg, CEO of Link Humans estimates hiring a new employee can cost up to $240,000!
One of the easiest and most effective ways a company can protect itself and its assets against loss is to hire the right people using comprehensive background checks.
By failing to invest in comprehensive background checks on a potential employee, employers are exposing themselves to liability for negligent hiring. Today's businesses cannot afford to take chances with their credibility, profit margins, or the safety of their staff by not investigating applicants. The costs of performing comprehensive background checks should be considered a basic cost of doing business, not an optional or unnecessary expense
Choice Screening is proud to stay on top of background screening trends, and we offer accurate and quick background checks to help you make informed hiring decisions. Consult with one of our account advisors to see how we can not only improve your background screening process, but to enhance your results all while keeping you on budget.
This blog is not all-inclusive. We cannot give legal advice, so make sure you are consulting with a qualified employment attorney.
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