Verifying a job applicant’s qualifications is by far not the only reason to do a pre-hire background check. It has many additional benefits that can add value to an organization. Professional screeners like Check People will make sure you glean these. What’s more, they offer a host of additional advantages of implementing a pre-employment check.
Reduced Risk of Negligent Hiring
A recent survey by the Society for Human Resources Management found that 30% of recruiters believed background checks mitigated the risks of negligent hiring. If an employee inflicts damage on a coworker, a client, or another third party that was work-related, the victim might claim the employee was likely to inflict this type of damage because of pre-existing accusations or a record. Then, the company will face a negligent hiring claim for not doing due diligence and finding out about this record.
If this case goes to court, the company will face further damage, including loss of reputation and high costs. On average, the settlement of a lawsuit for negligent hiring approximates one million dollars, according to the SHRM. In some cases, settlements have reached millions.
Background screening can help protect against negligent hiring suits. This is important because almost a quarter of respondents in a Benchmarking Report survey cite containing costs as their biggest challenge.
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Hire quality has improved thanks to background checks, according to 67% of survey respondents. More than two-thirds found discrepancies or inaccuracies on resumes. Moreover, companies have found misrepresentation on multiple occasions. It appears this happens with every tenth job candidate screened, according to 74% of respondents.
Evidence also suggests the job seekers most likely to falsify their resumes are those who have demonstrated adverse behavior in the past. Obviously, misrepresenting employment eligibility, criminal history, degrees, diplomas, certification, education, or employment history can lead to a bad hire. However, that’s just the beginning of damage you may need to reckon with. Misrepresentation can result in potential regulatory, legal, and financial risks for the company. A background check provider can help find altered or inaccurate information early on, preventing high hiring costs and other risks going forward.
Enhanced Legal Compliance
The Benchmarking Report cited above also states that 44% of those surveyed found background checks helped enhance legal compliance. For most companies, regulatory compliance is a substantial and significant business challenge.
A background check service with intelligent, inbuilt compliance tools and in-house compliance experience can help your company meet state and federal requirements and uphold industry standards. Requirements and standards can vary not only by job position but also from state to state. This only creates additional complexity for hiring organizations.
Companies face damages, loss of privileges, or costly fines without an effective pre-hire background check program in place. Background screening providers can help establish a reliable program for your organization during each step of the employment screening process, from completing employment eligibility verification through an electronic Form I-9 to the background check itself.
Guaranteeing a Safe Workplace
Workplace safety definitely shouldn’t be overlooked. Background checks helped 42% of survey respondents increase workplace security and safety, making them quite valuable. 11% of employers said background screening reduced violence at the workplace. 14% found it made accidents at work less likely. 16% reported it reduced employee theft.
These findings shouldn’t be underestimated. The American Management Association and the U.S. Chamber of Commerce estimate 75% of staff members steal at least once. In addition, just under 355,000 businesses grapple with workplace violence, according to an FBI study. Businesses should carry out background screening to enhance the quality of new hires and protect existing employees and company property from violence, theft, and workplace accidents.
