As a small business owner, you may be more incline to hire people you know or friends of friends. It’s easy. It saves you the hassle and cost of running an ad and conducting a full-blown search. It’s always worked out fine in the past…until now.
Without pre-employment screening, you’re hiring with blinders on. Given that statistics indicate that one-third of resumes contain misinformationand 30% of employees admit to stealing from their employer, it’s important to conduct thorough background checks.
If you’re still on the fence about the pre-employment screening process, here are three things that signal you need to take action.
You have a high turnover rate.
As we noted in an earlier post, “Reduce Turnover with Background Checks,” conducting a top-notch interview reduces turnover and increases your chances of hiring the right candidate. Part of the hiring process includes a background check. According to the HR Management post, “The ROI of Background Screening,” reducing turnover helps the bottom line. Specifically…
…The Employment Policy Foundation estimates that for a firm with 40,000 employees, the difference between a 15% turnover rate and a 25% turnover rate is over $50 million annually.
You’re filling a key position.
The more we advance technologically, the greater the opportunity for employees to cause problems. Whether the key position you fill is an executive in the C-suite or is a worker who handles money, merchandise, or has access to sensitive/confidential company information and systems, a background check can reduce your chances of a bad hire.
You’ve made a bad hire in the past.
When you’re a small business owner, one bad hire is one too many. The result of a bad hire can cost you as much as three times the annual salary of the employee. Harvard Business Review estimates that 80% of bad hires are due to poor hiring decisions. Finally, don’t forget about negligent hiring lawsuits. Those have been known to cost millions of dollars.
Just because you’re a small local employer doesn’t mean you can forgo the due diligence required to make the right hiring decision. Conducting pre-employment screenings on all your new hires protects you, your employees, and your community.
Don’t wait to make a bad hire. Get the help of an expert like TruDiligence today. We offer fast, accurate, comprehensive background checks, pre-employment screening, and verification services. For more information or assistance, contact us.