Why do background checks?

Isn’t it enough to ask the right questions during the interview process?

In today’s competitive job market, where the job seekers outnumber the jobs available, the tendency to exaggerate or outright lie to obtain the job can be compelling.  Studies have found that as many as 53% of job applications and résumés contain inaccurate information.   Completing a Pre-Employment Background Check has become a matter of necessity.  It allows the company to Trust, But Verify.

In addition, making a bad hire can expose your company to the following:

Workplace violence

Employers have a moral and legal obligation to ensure a safe working environment.  Unfortunately, in recent years, the problem of workplace violence has grown exponentially.  It is important to know whether the potential employee has been involved in violent or reckless behaviors, criminal activity, theft or substance abuse.  An applicant who has been involved in these behaviors can be a potential threat to the public or other employees.

Employee Theft

The typical organization looses 5% of its annual revenue to employee theft and dishonesty.  Through careful use of the information obtained in a comprehensive background check, employers can greatly reduce the risk of employee dishonesty by avoiding individuals who exaggerate or falsify credentials on their application, résumé or during the interview.

Negligent Hiring Liability

Employers are responsible both for what they know and what they should have known about their employees.  The Courts have repeatedly affirmed that employers have a duty to exercise caution and reasonable care in hiring individuals who may pose a threat to the public or fellow workers.  Through performing a background check , companies are considered to practice ‘Due Diligence’.

Costly Employee Turnover

Bad hires can be expensive.  Several studies have shown that every time a business replaces a salaried employee, it costs 6 to 9 months’ salary on average, to recruit, hire and train a replacement.  It can be costly in time and money to make a bad hiring decision.