Background Checks Save Employers Money

With the economy being somewhat unstable, many businesses are suffering. As a result, employers are looking for a way to cut corners. Some seem the believe that, for the time being, they can get away without conducting background checks on new applicants. This can have horrible results!

Employers that do not conduct background checks stand to lose a lot of money in the event of a negligent hiring suit or a variety of other hiring mistakes. For example, according to the American Certified Fraud Examiners, the average amount that an organization with fewer than 100 employees loses per case of fraud is $190,000.

On top of this, law firm Reish & Luftman says that employers lose 60 percent of all negligent hiring/supervision jury trials. Businesses can avoid these legal costs by properly investigating their potential new hires.

Without conducting a background check an employer does not know if they can trust a new hire and rightfully so. According to Insurance & Technology, 30 percent of workers who launch an attack on the company have criminal records. By simply investigating an applicant, an employer can lower the level of risk to their organization.

Since workplace violence accounts for 18 percent of all violent crime, according to the Bureau of Justice Statistics, employers should consider protecting their office place from such. A good portion of individuals who commit such crimes have a history of violence, which would show up during a background check and give the employer advance notice before making a drastic hiring mistake.

Employers who think that dropping background checks is great way to save money should also realize that, according to a Right Management Survey, businesses that have to replace a bad hire usually spend as much as 3 times the salary of the job in question to correct their mistake.

Budgets may have to be adjusted to make background checks possible, but companies should never cut corners when it comes to safety and making good hiring decisions. Remember, a business is only worth as much as the individuals working for it.