4 Critical Risks you take When Background Verification isn’t a Part of Hiring Process
By Archna Oberoi | 23rd February 2018 | #verification importance
According to Fast Company, one fourth of the companies surveyed estimated that a bad hire costed them at least $50,000 in the past year. A bad hire not only results in loss of time and expenses but also casts a negative impact on other employee’s morale and a decrease in overall company productivity. Hence, background checks simply make good business sense. They are critical for allowing you to focus on business growth, and not on dealing with potential problems. These potential problems can range from minor to rather severe. Here are 4 risks you take if you do not run a background screening of your new hires.
1. Decrease in Productivity
If a recent report from CareerBuilder is to be believed, 58% of résumés include misleading or incorrect information, such as falsified employment references, education details, inaccurate job titles, and seniority levels. If they don’t really have the experience or education they have mentioned in their résumés, they may not be fit for the job. And that can interfere with the whole team’s performance, as everyone relies on each other to pull their weight. Therefore, running a background check is a good method to ensure you are hiring a candidate based on actual skill set, and assuring high productivity.
2. Fraud, Hacking, and Theft of Information
Many business owners are worried about employees stealing critical business information. Employees with access to sensitive data have stolen (and in some cases, sold) client and fellow employee information. You can do your best to be aware of such potential problems by conducting a thorough screening work history gaps and reasons for leaving previous jobs. If a candidate left a job without another job lined up or another explanation for the gap, it would be worthwhile to inquire about the reason for the exit. You never know—it could have something to do with fraudulent deeds.
3. Negligent Hiring
“Negligent hiring” is a legal term that describes an employer’s liability for an incident caused by an employee when the employer knew (or should have known) that the employee posed a risk. For instance, let’s say a company hires a driver who gets into an accident due to drunken driving. One of the first questions a plaintiff’s attorney is likely to ask is, “Did the employer run a background check before hiring the driver?” Given the cost and bad publicity a negligence lawsuit can create, it’s in your best interest to fully vet candidates with a thorough background check.
4. Unsafe conditions for customers and employees
Employers have a legal obligation to create a safe workplace for employees—and it’s also a moral responsibility to do so. But according to a Society of Human Resource Management (SHRM) study, 36% of employers reported workplace violence incidents. These incidents result in physical or emotional harm to employees as well as negative repercussions to the company. Screening backgrounds before hiring is an important step toward reducing the risk of workplace violence. And drug screening can play a role when it comes to reducing on-the-job injuries, too.
We strictly beleive that employee background verification has become a neccesity rather than an option it used to be. To automate employee background verification in your company, try out OKHire, a SAAS based solution to validate a candidate from previous employers.