Successful companies operate in a way that positively impacts their profitability. Every department, from operations to human resources, create processes and solutions that are influenced by the bottom line. Although background screenings might seem like just another item to check off before hiring a candidate, it goes far beyond that. The background screening process and the information it provides has a substantial impact on the bottom line of a company.
Here are six ways background screening increases the bottom line of your company:
1. Shorten the recruitment process by weeding out unsuitable candidates
When a position opens up, hiring managers go through a time-consuming process of selecting, interviewing, and approving candidates. Through implementing an accurate screening program, unsafe or unqualified people are filtered out, creating a smaller pool of viable candidates. This saves time and money during the hiring process.
2. Reduce the chance of hiring the wrong person
Every job opening has several qualifications required for candidates, especially with education and professional work history. However, it’s common for candidates to embellish their resumes or list false job qualifications. In fact, a 2017 article from Inc. Magazine reported that 85% of employers caught lies on resumes or applications, a significant increase from 66% of employers five years ago. Because extending a job offer to an unqualified person could cost a significant amount of money, verifying his or her professional qualifications could mitigate these losses.
3. Reduces the costs of employee turnover
According to the Center for American Progress (CAP), the cost to replace a bad hire is approximately 20% of an employee’s salary, or $6,000–$15,000 for the average worker. Aside from the financial impact, replacing a bad hire lowers morale and productivity, encourages employee departures, and creates a burden for teams. Background screenings are a sound business practice that reduces this impact.
4. Reduce the risk of employee theft or fraud by screening for risk factors in an applicant’s background
Employee theft and fraud create significant costs on companies. A report from the US Retail Fraud Survey identified theft as the biggest cause of loss to retailers. According to the Association of Certified Fraud Examiners, the typical organization loses 5% of revenue to fraud each year, with a median loss of $140,000. Background screenings reduce the possibility of theft or fraud through revealing past work history and traits that suggest future risky behavior, allowing hiring managers to screen out these candidates.
5. Avoid lawsuits related to negligent hiring
Lawsuits for negligent hiring can be costly and devastating to a company’s reputation. Background checks protect your company and employees through identifying candidates that could pose a danger. Through an effective screening process, you will also demonstrate due diligence if an incident occurs.
6. Mitigates the risk of losing customers through a bad hire
Many companies work hard to grow their customer base, which can easily be undone through the mismanagement of an incompetent employee. A thorough background screening will reveal information from a candidate’s work history that can best help you evaluate his or her qualifications. Making informed hiring decisions will help you hire people that will retain and and also grow your customer base.
Speed Up Your Background Screening With Integrated Solutions
If you’re using HiringThing as your ATS solution, you’re in luck. Verified First provides background screening products that integrate with HiringThing’s platform, saving you time and speeding up the hiring process. You may access these tools through logging into your HiringThing account and requesting background screening from your dashboard.
If you’re not using HiringThing, which was listed on Capterra Top 20 Most User-Friendly Software and recently honored on the 2017 FrontRunners quadrant for ATS software, click here to request a demo.
Author: Alisiana Peters
Alisiana is a senior marketing coordinator at HiringThing, an award-winning online recruiting software provider dedicated to changing the way businesses hire talent. Questions? Contact HiringThing Marketing.