The Cost of Skipping an Employee Background Check

We live in a “get it done yesterday” kind of world. Many times, decisions are made with very little time to think about the long term effects. Working in HR, time is money and time is very limited.  But there are serious consequences associated with that attitude when it comes to employment background checks.  Many organizations feel that their HR team does not have the time, nor do they feel they have the additional cash-flow to implement and keep updated an employment background screening program.  We are constantly surprised at the amount of organizations (both large and small) that do NOT implement and upgrade a background screening program into their hiring process.

This could end up costing your organization much more than one employee.

A survey by a leading recruitment firm found 56 percent of job applicants misrepresent themselves on their resume. And in an MBI Worldwide survey, we learned most of those lies were about skill level. People embellish their work experience or flat out lie about their educational background or criminal history. The MBI Worldwide team can prevent the wool from being pulled over your eyes. It’s essential to make sure everyone joining your staff has been through a background check.

Here’s a few reasons why you should be more concerned about going through the process of accurate screening on each and every job applicant:

  • The Association of Certified Fraud Examiners found companies lose an average of five percent of revenue every year because of fraud. The study went a step further and found a single case of employee fraud can cost an average of $145,000. That number skyrockets for each additional fraudulent employee on the payroll.
  • Employee theft accounted for $32 BILLION in losses in 2014. Corruption, theft and misappropriation of money seemed to be more prevalent in smaller businesses with 100 or fewer employees. Granted not every theft case will be deterred by a background check, but by going through the process you decrease the risks of being a victim significantly.
  • It’s not just money and assets that are at risk. Bad employees can kill the morale of the workplace in no time at all. That drop in morale leads to less productivity by others. Costly mistakes can be made by careless employees who could have lied or flown under the radar because no one bothered to do an employment history check. An unqualified worker can be very dangerous.
  • Conducting an employment background check on one applicant but skipping the next, is NOT compliance hiring practices.  Make sure that your HR team knows both compliant and adverse action processes.

These mistakes can hurt more than just the people on your team. Problems can also arise for customers and clients that visit your business.   This could potentially end up costing you business also. If the mistakes are significant enough, you could even be subject to a lawsuit. Negligent hiring cases usually cost a company approximately $1 million; and research has shown 80 percent of the time the company loses the court battle.

Don’t become a victim. Before hiring that job applicant, have a thorough and compliant background screening completed by a compliant and safe consumer reporting agency. The one time cost you’ll pay now is a fraction of the fees and headaches you’ll endure if you skip this valuable part of the hiring process. Call MBI Worldwide today at (866) 275-4624.  We will help you set up a simple and compliant package that fits your needs, as well as the needs of your customers.


BRIAN
A VETERAN EMPLOYMENT SCREENING AND RISK MANAGEMENT PROFESSIONAL,  BRIAN D. CHAPMAN IS THE CEO AT MBI WORLDWIDE, A GLOBAL EMPLOYMENT SCREENING COMPANY.  CHAPMAN RECEIVED A DEGREE IN CRIMINAL JUSTICE FROM JOHN. A. LOGAN COLLEGE AND HAS BEEN APPOINTED INTO THE CEO COUNCIL OF TAMPA BAY AS WELL AS A MEMBER OF THE NAPBS NATIONAL BOARD OF CREDENTIALING.  HE IS AN AUTHOR AND EXPERT WITNESS IN THE EMPLOYMENT BACKGROUND CHECK CIRCUIT.  CHAPMAN IS A FREQUENT KEYNOTE SPEAKER ON ISSUES OF EEOC COMPLIANCE, ADVERSE ACTION AND EMPLOYMENT SCREENING BEST PRACTICES.


 

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