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The long term benefits of pre-employment screening

Aug 07, 2011 Matt Roesly

The long term benefits of pre-employment screening
Pre-employment screening should be a mandatory step in any company's hiring practices. Job applicants can sometimes lie or exaggerate the truth on their resumes, which can result in an employer taking on a highly qualified individual whose degree is actually fake.
 According to Smart Business Online, the National Credit Verification Service estimates that 25 percent of MBA degrees featured on resumes are fake. What's more, 60 percent of the degrees the service verifies are also false. Thirty-four percent of job applications contain lies relating to experience, level of education and the ability to perform job functions, as estimated by The Wall Street Journal. Using proper pre-employment screening tactics can help an employer avoid the liability of a poor choice. Smart Business Online noted 30 percent of small businesses fail due to employee theft, as internal employee theft happens 15 times more frequently than external theft. Every year, $4 billion in embezzlement losses are reported and myriad other crimes a company may experience can cost up to $50 billion per year. "One of the easiest and most effective ways a company can protect itself and its assets against loss of any type is to hire the right people," Ron Williams, CEO of risk management firm Talon Companies, wrote for the source. "Although obvious, this advice is seldom heeded by employers, who rely on intuition in making hiring decisions more often than established facts learned through background checks." Williams suggests that companies check the information on candidate's application, at minimum, specifically taking note of short-term employment patterns. It can be in a firm's best interest, however, to verify information through a background screening agency - one that's both reliable and reputable. Agencies will use a candidate's Social Security number, criminal and civil background records as well as other pertinent information to compile a multifaceted look at a candidate. "Because employers are held accountable if they knew, should have known or had any reason to believe that an employee or prospective employee posed a risk of threat to others, it is essential that thorough background checks be conducted and documented," Williams wrote for the source. "Proper screening of employees makes it possible for an employer to make an informed decision about applicants before they are hired and brought into the workplace. Such basic practices give an employer the ability to create a safe and profitable work environment and protect against loss."