Hiring talent is critical to a company’s long-term health; you just cannot afford to make a poor hire!
These are a few statistics, to emphasize the importance of background checks as a regular part of the hiring process:
- Sixty-six percent of negligent hiring lawsuits resulted in awards for damages averaging $600,000.
- One-third of business failures result from employee theft. (U.S. Department of Commerce)
- Workplace violence accounts for 18 percent of all violent crimes. (U.S. Department of Justice)
If statistics like those are not enough to satisfy Human Resources personnel, consider this:
- Half of all resumes and applications include false information. (SHRM/Society for Human Resource Management)
There are many types of employment screening. Which of them (or how many) are right for your company? It depends upon the business and the position needed to be filled:
- Reference Check
- Drug and Alcohol Screening
- Criminal History Search
- Motor Vehicle Records
- National Criminal Background Check
- Credit Report
- Social Security/Name Trace
- Military Service Verification,
- Civil Court Records, Education Confirmation
- Employment Verification
- Credentials and Licenses
- Sex Offender Registry
Third-party entities can provide the majority of background checks. Most recruiting systems and Software-as-a-Service companies are fully compliant with Federal Trade Commission standards. Every background check, no matter which one or how many, can provide useful information for a sound hiring decision.
For example, firms hiring physicians need to confirm education, especially when advanced degrees are required for the job. It would be disastrous to discover years later that the doctor they hired never completed an M.D. or Ph.D. That oversight could lead to a massive legal liability. Companies must recognize the exposure risk from not conducting appropriate pre-employment background checks.
A standardized candidate tracking system is also essential. Always get an applicant’s written approval prior to conducting any background check. Customary forms are available to obtain this authorization, different from other documents the applicant must sign. A signature from an application may be used when verifying previous employment and conducting reference checks. Be wary of the candidate who refuses or “overlooks” signing a background check consent form or application. Refusing to make amends for this oversight is also a red flag.
The significance of employment screening cannot be overemphasized. Not every applicant will appreciate the idea of a background check, but it is imperative for the employer to know they are making the right business decision. That means a candidate is truthful, reliable and has the required experience.
In the end, the success of any company largely depends on its people. For this reason, the time to start incorporating pre-employment screening in hiring procedures is now.
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