Employers that opt-out of employment screening often cite cost as a factor in their decision. Background checks can be expensive for many reasons but a trustworthy and PBSA-accredited screening partner can help alleviate the cost. Choosing to skip background checks is actually more expensive than the due diligence it takes to hire the right employee the first time.
Here are a few ways employment background checks save money.
Reduces Risk of Hiring Negligence
According to various sources, employers lose upwards of 70% of negligent hiring claims, paying millions of dollars in punitive damages. Negligent hiring law first appeared in 1908 after an employee's prank accidentally killed a fellow employee. Employers are held responsible for the actions of their employees, both towards their customers and other employees. Criminal background checks can ensure new or existing employees don't have a history of workplace violence, fraud, or other damaging concerns.
See also: Why Screen Current Employees?
Improves Hiring and Training of Quality Employees
With thousands of dollars spent on hiring and training employees, background checks ensure that employers are spending wisely on the right person. A bad hire is costly in many ways, including:
- Recruitment and advertising
- Onboarding and training
- Workplace morale and performance
- Reputational damage
Turnover costs can vary, depending on the level of employee, and average 1 - 2x the employee's annual salary. Quality employees are those that have been vetted for the job.
Increased Morale & Retention
Hiring the best employee the first time means that they can get right to work. Training, onboarding, and fit within the team can be done with confidence, knowing that the new hire is adequately screened for the position. When the best employees are screened and hired, workplace morale and employee retention increase. Employment background checks procured with a reliable screening partner uncover quality employees at an affordable cost, saving employers time, money, and other resources in the long run.
VeriFirst is proud to be a member of the Professional Background Screeners Association, maintaining Accreditation through the BSAAP standards. Employers partnering with VeriFirst can trust that their background screening reports will adhere to the strict BSAAP standards and will maintain FCRA compliance.