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You are here: Home / Employment Screening / Vetting Potential Employees: Are Background Checks Cost-Effective?

Vetting Potential Employees: Are Background Checks Cost-Effective?

January 27, 2015 by hremp.com Leave a Comment

Vetting Potential EmployeesEmployers may be pleasantly surprised when they realize vetting potential employees with employment screening background checks is really cost-effective. The check may save money in several different ways:

  • Reduces employee turnover and the cost of retraining a new employee.
  • Identifies employees who have a history of dishonesty which will help prevent theft in the workplace when they are not hired.
  • Reduces the incidence of workplace violence by identifying potential employees who have a history of violence.
  • Reduces or prevents the cost of civil lawsuits based on negligent hiring when an employee engages in illegal behavior that harms others when a background check could have revealed the potential for the illegal acts.

The U.S. Chamber of Commerce (COC) reports that 75 percent of all employees admit to stealing from their employers. A few say they only have stolen once. Others claim to have stolen repeatedly. The COC says that more than one-third of small businesses that fail attribute the failure to employee theft. Theft includes stealing money, merchandise and time. Businesses across the country lose more than $50 billion a year due to employee theft.

In addition, according to the Occupational Safety and Health Administration (OSHA), there are more than two million reported cases of workplace violence every year. When other employees are injured in the workplace due to the violence of a co-worker, civil lawsuits are filed against the employer for negligent hiring.

When all these factors are considered, it is apparent that the cost of vetting potential employees with employment screening background check by a reputable company is miniscule when compared to all the potential costs that can arise from not conducting such checks. A criminal background check can reveal state (county courts) and federal convictions. Employers can evaluate the nature of the conviction and determine whether the applicant has a history of dishonesty due to theft offenses or has a history of violent behavior. A company whose business it is to do employment screening background checks should know how to conduct the checks within the legal requirements applicable for employment screening.

Key Takeaway: Employment screening background checks are cost-effective tools when vetting potential employees.

Disclaimer Statement: All information presented is for information purposes only and is not intended to provide professional or legal advice regarding actions to take in any situation.

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