In times of economic uncertainty, the hiring process can be extremely beneficial in leveraging the best talent and reducing the risk of financial or productivity loss or employee harm. In order to make the best informed decision companies should have a multifaceted hiring process in which to evaluate a candidate which includes a background check.
Hiring the wrong employee does not only present a financial loss for the organization but taxes employees and departments; decreases production; impacts the level of service provided to clients, and puts the company and clients at risk. Over the years we have witnessed adulterated examples of employee abuse of company property, funds, and employees themselves through employee fraud, theft or workplace violence. According to the American Management Association (AMA) and the U.S. Chamber of Commerce, 30 percent of all business failures are due to employee theft and other forms of dishonesty. The AMA reported drastic losses to U.S. businesses due to employee pilferage and commercial bribery (over $10 billion each), embezzlement (over $4 billion), vandalism and burglary (over $2.5 billion each), insurance/workers compensation fraud (over $2 billion), arson (over $1.3 billion), and computer fraud (over $1 billion).
Fortunately, an employee background check is an excellent resource to assist employers in weeding out these bad apples. Bringing a new employee into the workplace can be as significant as bringing a stranger into your home. Companies need to be sure that the new employee is a right fit for the position and for the organization as a whole. The specific scenarios listed below further explain the need to really know an employee before they enter your workplace.
A Dishonest Employee Resume or Application
Most prospective employees must submit a job application or resume prior to an interview. These documents provide a great deal of insight, but beyond employment and educational history, they fail to supply substantial information. Also, many applicants are not truthful on these forms. Common mistruths include fabricating skills and educational experience, excluding negative information or fudging dates. Employers who take the extra step and run a complete employee background check gain the opportunity to validate the accuracy of the information provided by the candidate that could otherwise not be evaluated in an interview.
Workplace Theft and Violence
Employee theft and violence are both on the rise in the workplace. According to a 2006 report by the Bureau of Labor Statistics (BLS), almost half of employers with over 1,000 employees reported an incident of workplace violence in the previous year. Uncovering a potential employee's legal history will help employers identify candidates that may be at risk for engaging in these types of behaviors.
Avoid the Court Room
Organizations can be held legally responsible for negligent hiring. It's become more common for companies to find themselves facing legal issues; therefore it is very important for companies to conduct a thorough screening process of all employees to mitigate legal risk. Legal issues can result from serious offenses such as identity theft, data and financial breaches, to an invalid employee driver's licenses, etc.
Employee Turnover and Discipline Issues
When an employer relies solely on a resume or an interview they put themselves at risk of hiring a substandard or dangerous candidate. As a result, candidates need to be quickly replaced and companies need to rebuild or recoup any loss in productivity or finances. Instead, employers should take the extra step of running a full background check to help position themselves to ensure the most responsible employees are selected to lower the turnover rate and decrease discipline issues. Additionally, diving deeper in a candidate's employment history and contacting references can help companies avoid hiring employees that have an unstable work history.
Running a background check reflects corporate responsibility and discourages dishonest behavior with applicants. Background checks also show current employees and clients you are willing to take the extra steps and time to ensure you bring the best employees into the company. This act shows employees you have their best interest in mind and seek to provide them with the most qualified co-workers. A satisfied and competent employee pool creates a more stable and successful work environment.
When hiring a new employee, you are entrusting them with your company and your clients. Therefore it is your corporate responsibility to ensure a safe work environment and protect your company's assets. With today's technology advancements running a background check is a simple and affordable process that needs to become a common practice for all organizations. In the end when evaluating the entire hiring process, employee background checks are an essential step that can save a company significant amounts of time, effort and money.
One of the easiest ways to ensure that background checks become a part of your hiring process is to integrate a Web-based Human Resources Management System (HRMS) platform into your HR department. An HRMS platform will not only automate and streamline your payroll and benefits administration but also integrates all aspects of HR, from talent management and applicant tracking to recruiting tools, pre-employment testing, background checks, labor law resources and skills training.
Regardless of your industry or business size, a centralized HRMS platform can help your company achieve incredible levels of productivity while staying within budget. By choosing a Web-based HRMS and leveraging its unique offerings such as employee background checks and recruiting tools, companies can turn a basic HR practice into a highly efficient and responsive process that assists employers in attracting, hiring, and retaining the best candidates available.
Michelle Moylan is an HR Specialist/ HR Liaison/Consultant with CheckPoint HR, an innovator and leading Administrative Service Organization (ASO) that offers small to mid-size organizations a single source solution for human resources, payroll and benefits. Ms. Moylan has built her experience by working as a specialist in different functions of Human Resources such as recruiting, policies, training, organizational development, workforce planning, HR technology and employee relations.
She has professional work experience in companies ranging in size from Fortune 500 to startups. Ms. Moylan also assists organizations in redefining or implementing HR solutions. Ms. Moylan holds a Bachelors degree from Monmouth University.
