Human capital (aka people) is a company’s most significant asset. The success of a company begins and ends with the people who create, manage, and deliver the products and services of an organization. Human capital risk is introduced into the organization as the gap between the needs of the organization and skills of its people. And according to a 2007 Economist Intelligence Unit survey human capital risk is the single most significant threat to business operations around the globe – yet it is also the least well-managed.
So how do we build a business filled with the right types of people to give our organization the greatest opportunity for success? How do we mitigate the inherent risks that human beings, who come to us with different backgrounds, behaviors, experiences, and values, will bring into the organization?
Pre employment background screening serves many purposes but the overarching benefit is this: Employment screening helps to mitigate human capital risks by helping companies build a safer, more qualified, more productive workforce.
How Can Pre Employment Background Screening Decrease Your Human Capital Risk?
Pre-employment background checks can be an effective risk management tool providing a foundation of integrity, a level of confidence and certainty to employers that the information a job applicant provides is true and accurate. It also offers valuable information about the past behaviors and actions of potential employees, such as criminal backgrounds, credit histories, driving records, and more. (The level of information an employer will want to know depends on the requirements and risks of the position).
According to the FDIC, “used effectively, a pre-employment background screening process may reduce turnover by verifying that the potential employee has the requisite skills, certification, license or degree for the position; deter theft and embezzlement; and prevent litigation over hiring practices.”
Build a Better Workforce with Pre Employment Screening
In our practice, employers find great value in pre screening their employees. Here are some of the main risk-related benefits:
- Shows due diligence: Pre employment screening programs enable our clients to demonstrate due diligence in protecting the safety of the workplace, customers, and the public at large.
- Reduces uncertainty: Screening a potential employee reduces the level of uncertainty that is inherent in any hiring decision. By verifying claims and checking past records employers can rely on more than just a “gut feel.”
- Deters poor job candidates: Companies that have a background screening requirement are far less likely to attract candidates with something to hide. This self-selection benefit reduces hiring costs and naturally leads to a better, more qualified workforce.
- Affordable: Pre-employment background screening is an affordable and useful tool to improve hiring decisions. The relatively low cost of employment screening services leaves companies with little excuse NOT to do it. Our clients always appreciate the side-benefit of affordability.
For companies that compete on the basis of their people, employment screening is a small step that can deliver major rewards. Knowing more about the people who will make up your workforce can help you make better hiring decisions that will affect your organization for the long run.