Reduce Hiring Risks

When hiring new employees, it’s important to make sure that person is the right fit for your company and for your culture.

Unfortunately in the hiring process, problems arise.  A recent study by CareerBuilder found that almost 70 percent of companies were impacted by a bad hire.  As an entrepreneur myself, I understand first-hand that these mistakes can become costly not just monetarily, but also for the morale of the organization.

These are some measures hiring managers can take to reduce the risk of making a bad hire.

  • Check and double-check candidates.
    Hiring the right person starts with the application process. Make sure you are using legally compliant applications and forms.  Contact your attorney if you are uncertain as to what forms you need to be using.  Be thorough during the interview process and encourage another team member to be present during the interview.  Document everything.
  • Background Screening and reference checks.
    Remember, anyone can look good on paper, but approximately 21% of job candidates have a criminal past.  Background screening is the first line of defense for businesses.  Always obtain written consent before initiating the screening process.  Make sure you are using legal documents to gather information about a candidate’s past.   Use updated releases and disclosures.  If you do not have them, contact your screening company for these forms.  Understand and apply adverse action.
    Click here to download MBI’s Background Screening Compliance Checklist for Hiring.
  • Broaden the search range for candidates.
    While not everyone looking for a job is willing to relocate, there are talented folks out there looking for a change of scenery.  Expanding your search for talent outside the immediate area will offer a wider range of options to add to your team.
  • Sign on the dotted line.
    Requiring employees to sign a contract gives you (and them) an option to opt out if you’re not satisfied with their performance, or if it’s not a beneficial fit for them. Set a date and an evaluation process and give the employee feedback along the way.  Offering a contract with financial rewards can provide extra incentive to employees and boost morale along the way. It will also serve as a reminder that quality work is needed to guarantee a future with the company.
  • Pay up.
    Making sure you are fairly compensating employees can prevent problems with unhappiness. Other incentives along the way can help to ensure happiness, which translates, to more productive workers. Consider things like bonuses, extra days off or employee appreciation days from time to time.
  • Communicate policies.
    Don’t just talk to your employees or candidates about the policies of your company. Put them in writing. An employee handbook is helpful along with memos and other notes. A clear definition of what’s expected and how to accomplish the goals of the company can prevent any confusion or problems.
  • Listen!
    Communicating doesn’t mean you’re the only one doing the talking.  Addressing employee complaints and concerns is important to avoid trouble down the road. Give employees an opportunity to make their voices heard in a manner without fear of retaliation.


Kandi Chapman, President
MBI Worldwide Background Checks

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