Employers who refuse to do background checks sometimes claim cost as a reason for their choice.
Background checks can be costly for a variety of reasons, but using a PBSA-accredited screening partner such as the leading pre-employment background check Florida firm Edge Employment Screening can help reduce the cost.
Skipping background checks can be significantly more expensive than doing your due diligence and hiring the appropriate person the first time.
We’ve compiled a list of reasons on how employment background checks tend to save employer’s money in this blog.
Reduce the chance of fraud
Businesses are always looking for new ways to keep their operations safe and secure from external dangers that might lead to revenue loss, and background checks are an important approach to consider since they may assist your company in reducing the risk of fraud.
Businesses lose roughly $3.6 billion each year on average due to fraud in 125 countries, an average of $8,300 per month per fraud case, according to a published report.
Businesses commonly face three forms of fraud that result in revenue loss, according to the Association of Certified Fraud Examiners (ACFE). It’s as follows:
- Corruption: Bribery or conflicts of interest account for 43% of fraud, with losses of up to $200,000 possible.
- Schemes of financial fraud: Employees who purposefully mishandle financial statements account for 10% of all fraud.
- Misappropriation of assets: Employees steal or take advantage of corporate resources account for 86 percent of fraud.
Employee background checks give candidates insight into the sort of culture that your company values and is committed to sustaining during the recruiting process.
Furthermore, screening these applicants gives you peace of mind since it allows your company to spot any potential ‘red flags’ before money is lost.
Save money by not having to train an ineffective employee
According to CareerBuilder, 43 percent of businesses made a disastrous hiring because they were under pressure to recruit someone quickly.
Conducting one of Edge’s swift, smooth, and efficient background checks can assist in identifying the following frequent resume lies:
- On their resumes, 25% of people exaggerate their work experience.
- On their resumes, 21% of persons lie about their employment activities and responsibilities.
- On their resumes, 16 percent of people lie about particular work dates.
Background checks enhance hiring quality
Background checks guarantee that firms are spending their money wisely on the right individual when thousands of dollars are spent on recruitment and training staff.
A poor hire costs money in a variety of ways, including:
- Recruiting and marketing
- Training and onboarding
- Workplace morale and productivity
- Negative publicity
Depending on the level of employment, turnover costs range from 1 to 2 times the yearly wage. Employees who have been vetted for the position are considered quality.
Lower the Chances of an Internal Lawsuit
Negligent hiring happens when a company does not aggressively undertake background checks throughout the recruiting process and an incident occurs that may have been avoided.
Negligent hiring cases may be expensive, and one of the most typical accusations is a failure to sufficiently screen for prior misconduct. Furthermore, charges of irresponsible hiring or workplace violence can result in unwanted publicity, which can permanently harm an employer’s image.
Conclusion
Background checks are a tool that may assist a company in reducing the risk of losing income due to the employment of an unsuitable employee.
Do not delay the use of a professional Pre-employment background check on your new hires from a company like Edge Information to protect your business now.
