Hiring a new employee costs between $1,000 to $5,000, depending on the nature of the hire. The cost of a bad hire is even greater, more than $25,000 in 41% of cases. With these costs in mind, it is in an employer’s best interest to adequately assess an applicant’s qualifications for a given role. If ingrained into your application process, background screening can help you identify the best candidate for a role and save money in the long run.
Consider these 11 facts, which suggest the importance of screening candidates to ensure their credentials and background qualify them for a particular role:
- Employers found 56% of resumes were embellished or fabricated in some way.
- Employee dishonesty (including fraud and embezzlement) costs companies $50-billion every year.
- Almost 2-million workers are the victims of workplace violence every year.
- The median cost of replacing an employee (excluding executives) is 21% of an employee’s salary.
- Organizations lose an average of 5% of yearly revenue due to fraud.
- Drug abusers cost the U.S. workforce an estimated total of $25.5-billion due to absenteeism and loss in productivity.
- Retail employee theft results in $15-billion in costs every year.
- Employee fraud causes companies an average of $9 per day per employee.
- Fraud in small companies (less than 100 employees) is approximately equal to that of fraud in very large companies (10,000 or more employees).
- On average, executives cause three times more fraud than managers and 14 times more fraud than employees.
- 30% of all business failures are the result of poor hiring practices.
In the grand scheme of things, background screening can help your company save money by helping you identify the right candidate, reduce fraud, and increase worker productivity. Take a closer look at background screening solutions and how best to integrate them into your existing hiring process.