4 Ways Pre-Employment Screening Generates Value for Your Company

You’re about to make a hire. So far, the candidate checks out on paper and in person, but you have yet to perform a formal background check. Is the final background screening really necessary?

Screening candidates is an extra step in the hiring process, yet it proves to be an important one in getting the right person for the job. We all know that making the right hire the first time can save your company time and money down the road. The cost of replacing an employee is high, an average of 6 to 9 months of their annual salary. Given the stakes, pre-employment screens are a highly valuable addition to the hiring process toward getting the right person for the job.

Here are four proven ways pre-employment screening brings value to your company:

1. Make better-informed hiring decisions.

According to SHRM, 86% of employers discovered falsifications in a candidate’s resume. Background screening revealed resume misrepresentations for 72% of employers.

This poses a dilemma to employers, as it makes it near impossible to take a mere surface-level look at a candidate without taking some risks. For example, while a face-to-face interview is a great way to get to know a candidate on a personality and company fit basis, there are other factors that should also be carefully considered. Sitting at the top of the list lies verified qualifications, which can be incredibly helpful in improving the quality of a hire.

Does the candidate’s job history line up with what their resume indicates? Does the candidate indeed hold the licenses or certifications they claim to have? In the context of fact-checking a candidate’s background, taking the extra step early on can help improve your chances of selecting the right person for the job.

2. Reduce negligent hiring (and retention) risks.

Your decision to hire or retain an employee is one that comes with great responsibility and risk. As such, you have an obligation (duty of care) to hire competent people who are a good fit for their given roles. There have been too many negligent hiring lawsuits to list and it is reported that employers lose these cases more than 75% of the time at an average cost of $1M each.

So, when an employer fails to exercise reasonable care in hiring or retaining an employee and that employee causes harm, the question will be:

“Did the employer know or should they have known the person was unfit or incompetent for the employment, thereby exposing third parties to an unreasonable risk of harm?”

The case for pre-employment and ongoing background checks is a clear way to help reduce your exposure to negligent hiring and retention risks.

3. Create a safer workplace.

With background screening, your due diligence can help uncover certain violent, aggressive, or otherwise unsafe or inappropriate behaviors your prospective employee has demonstrated. Pre-employment screening can also be used to check for drug use that may impact a person’s safety on the job.

4. Help position your brand for trust and safety.

Getting the right people on board is essential for building a workforce you can trust with your company and reputation. A tarnished reputation can compromise the brand of your company with the potential to lead to long-term effects that could hurt customers, staff, and the company as a whole.

When you make it widely known that you require background checks of your candidates and employees, you send a message to co-workers, potential job applicants, customers, and the public that your brand places a high priority on trust and safety.

Hiring the right people helps protect your brand, employees, and customers. With pre-employment screening and rescreening, the extra steps can make all the difference. Learn more about pre-employment screening solutions and how to generate the most value for your company.

About Michael Gaul

Michael is a results-oriented marketing executive with over two decades of experience in employment screening, physical security, and business process management. Michael has deep experience in human capital risk management and a passion for educating business leaders and HR professionals on strategies that tangibly protect their interests. Michael serves on the Board of the Secure Cash and Transport Association (SCTA) and is a member of the National Association of Professional Background Screeners (NAPBS), and the American Society of Industrial Security (ASIS).
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