Mar 27, 2020 MicroBilt News
Running a background check is an important element in the hiring process and is one no business should ignore. According to statistics, a whopping 96% of employers say they conduct “one or more types” of background screening before hiring a candidate. Of the 4% of companies that said they don’t conduct background checks, 29% responded cost was the reason.
If the cost of running a background check is holding you back from screening potential employees, you should consider the costs associated with not thoroughly knowing who you’re hiring. Running a background check is far more cost-effective than not conducting one. Here’s why.
Recruiting and onboarding is expensive
One of the biggest expenses for businesses is the investment it takes to find good employees and train them. Consider all the resources you invest in advertising, sorting through applications, reading resumes, conducting interviews, completing onboarding paperwork, and training. These hiring costs are worth it if the end result is a good employee. However, it’s cost-prohibitive if you end up hiring a thief or person with other unscrupulous intentions. Not only do you suffer any losses associated with their dishonest behavior, but you have to jump-start the hiring cycle all over again—along with re-committing to those same recruitment and hiring costs.
Bad hires can result in business failure
Hiring deceitful employees can prove to be expensive. A 2016 CareerBuilder study found the average cost of one bad hire is $17,000. Aside from the high costs incurred with bad hires, it’s important to consider how a bad hire can result in the difference between business success and failure. Statistics show more than 30% of small business failure is caused by some form of employee theft. Before you hire an employee without running a check, ask yourself – is this a risk worth taking?
Background checks promote a safe work environment
Background checks go a long way towards bettering your company’s working environment. Hiring vetted candidates mean your staff can rest assure they are working with ethical colleagues. Knowing you’ve made good hires also reduces your risk of legal liability. Consider the disastrous outcome if you’re held liable because of harm an employee did to a colleague or customer. Even worse, if it turned out said employee had a history of similar issues you weren’t aware had occurred. On the other hand, a background check would have detected a potential problem. Background checks help to ensure your employees are trustworthy and honest.
As an added bonus, if you run background checks prior to hiring employees, you might find your insurance provider offers a discount on coverage. Be sure to ask your carrier if this is an option.
If you’re looking to perform background checks on potential employees, Microbilt can help! Our background screening products are designed to help businesses make smart hiring decisions. To learn more about how our screenings can help you hire the best candidates and avoid fraud, contact us today.