4 Issues a Business Could Run into if a Background Check isn’t Done.

In a company’s search for potentially new employees it requires resources and a large investment of time. Taking the proper steps to ensure a new hire is right for the company makes the most sense. The first step that should be taken is finding out if the applicant is who they claim to be. Doing a background check also can confirm what was presented on a resume; from work experience to education, certifications as well as awards. When a company does its due diligence it gives insight to any red flags that could be hazardous to the bottom line of the company. 

When a company declines to do background checks for new employees, they run the risk of wasting money due to their poorly informed hiring decisions. Following a survey performed by Fast Company, a quarter of businesses estimated their poor hiring process costs them over $50,000 in one single year. A poor hiring process results in lost time and becomes incredibly costly for a business because they need to recruit and train everyone that is hired. Employee morale and chemistry in the workplace could also be affected as a result of not taking the proper steps when hiring new employees because of the constant need for new people. 

Not to worry though because there are ways to avoid any potential issues, run a background check. It makes great business sense to run a background check. It’s essential to the hiring process so the company is well informed. This promotes growth and allows the company to allocate more focus to operations. To ensure optimal performance when hiring companies want to be aware of these 4 issues they could run into if they choose not to do a background check. 

Fake information

In the workplace trust is key. Employees also need to represent the business and brand presentably when interacting with partners and customers. 

When a business is browsing applicants on a job board forum, it is extremely important to verify the information of potential hires. A recent report stated 57.8% of resumes include false or misleading information, which includes false education accreditations, inaccurate job history, job titles as well as job time range. 

There are small issues that may not affect the employee’s performance; a small date issue. But there some that are a little more serious, you may remember the time former CEO of Yahoo “Scott Thompson” who found himself in the headlines for misrepresenting his self-regarding his college degrees. 

When hiring a new employee that provided false information it can most certainly affect the work environment. When a new hire is not qualified for the position and doesn’t have the required experience to perform necessary tasks, they may not be a good fit for the job. Since the work environment is team based, it can also affect the rest of the team because they rely on each other to do their part.  

The same survey also stated a poor choice in hiring takes approximately 17% of a supervisor‘s time which is close to one day a week. When extra time is spent in efforts to train a bad hire it means less time is being spent to improve the businesses growth. 

Having a background check done is the best route to make sure a business is hiring an applicant based on accurate information.

This ensures the company has a piece of mind and know no time was wasted. Purchasing a background check package from us at Fidelity Background Checks when doing your due diligence gives you access to employer, education, certificates, license and more so you can move forward with confidence. 

Hacks, Crime & Fraud

Most companies’ owners are weary of employees will steal or act unethical. It’s definitely something to think about. A study was done in 2014 conducted by the Association of Certified Fraud Examiners, they discovered global occupational fraudulence accounts for $3.7 trillion dollars per year. It also stated that an average theft is estimated to be about 5% of revenues annually. 

Thief are also other forms of theft, particularly cybercrime, which could affect businesses and industries. The Computer Security Institute are assuming upset ex-employees hack employers at an accelerated rate. Verizon said in fact 20% of its recent attacks came from insider neglect. It was also discovered that employees that have access to sensitive data sometimes steal it and sometimes even sell it for profit.  

 By simply doing a proper screening of the applicant, you will be thoroughly informed and can make an accurate decision. If a potential candidate left a job without having another job as a backup and there was a gap, it would be worth it to find out the reason for it. The reasons could surprise you, so it would be best to find out so you can make an accurate decision about the hiring process. 

Negligent hiring

A term used in legal practices; “Negligent hiring” is attributed to an employer’s liability; if an incident is caused because of an employee. This term is used when an employer knows and dismissed the fact that the employee posed a risk. 

As an example, let’s say a business hired a truck driver and the driver gets into an accident that causes the company to be subject to legal action. In some situations, the first questions the plaintiff’s attorney asks is if the employer ran a background check before or during the hiring process.

In a situation such as the one just mentioned, a business would be in a better legal position if the motor vehicle and background check was performed and clean. 

From another perspective, if the business didn’t screen, and the accused had previous license suspensions the business would then be liable for the case. Liable because they we’re negligent and failed to screen their employee. 

It is estimated that the average cost of negligent hiring is $1 million. When these types of situations are brought to court, companies lose about 75% of the time. The bad press and the cost a negligence lawsuit can bring should motivate any business to do a thorough background screening. It’s makes great business sense considering the risks if not.  

Hazardous environments for customers and employees 

Companies are legally obligated to maintain a safe work environment for employees as well as customers. A SHRM study states 35% of businesses report violence incidents in the workplace. These situations result in harm to employees and possibly customers. In any situation involving the customer or employee it could have some upsetting repercussions for the business. 

Doing a background check before actually hiring a candidate is an essential step to eliminating risk from the workplace violence.  If a potential hire was convicted of a violent crime that’s automatically an applicant you might want to pass on. Injuries in the workplace can also take place in the form of job-related incidents. Doing a drug screen on a new hire can be very valuable when it comes to worker’s compensation claims by close to 60%, according to a survey performed by SHRM. 

Knowing what you know now, I hope you can see the importance of taking the proper and necessary steps to ensure a successful hiring process. A company’s times still stands to be their most valuable asset. A businesses daily operation is enough to deal with in a day, so worry less about your business or dishonest new hires by doing a background screening.  

Every step to ensure the companies integrity isn’t ever at risk is always worth it. 

Leave a Comment

Your email address will not be published. Required fields are marked *

Clients Are Commenting

About Fidelity's Services

Receive Your Own Background Check

Start Your Self Screening Now!

Scroll to Top