The High Cost of Not Screening Potential Employees
You would be naive to think that all everyone is honest when they fill out a job application
, especially when it asks if the applicant has been convicted of a felony. They may think that they will not be hired if they answer truthfully. Employers should perform a criminal background check on applicants to be sure they don't have a criminal background. If not, they could be subject to legal ramifications for negligent hiring practices. Legal liability also extends to any harm done to your clients because of misrepresentations by your employees relating to their work history, qualifications, education, prior positions and the like. These are especially true in the healthcare, financial, and banking industries. The reputation of your business can be damaged and cost you money because of untruthful employees.
Unqualified employees who have embellished their applications can also lead to a higher employee turnaround when they are not able to meet the requirements and expectations you require. This can also result in loss of revenue spent on training and effect employee moral by placing more duties and responsibilities on your current employees.
Studies show:
One in every 32 adults has a criminal record, according to the US Department of Justice.
Employers found liable by a jury face up to $1.6 million in damages and $20 billion annually is lost by US businesses due to negligent hiring costs.
Information given on a resume is false or exaggerated an estimate of 45% of the time.
The average turnover expense for an $8.00 per hour employee is $5,000.
Employee theft results in 30% of all new business failures.
If an employee drives your company vehicle or uses their own vehicle for your company's business, a motor vehicle record should be procured from the state in which they hold their license. Insurance companies will usually give a business discount for performing background and motor vehicle record checks.
Some examples of how a background check could have prevented negligent hiring in an Arizona county:
Albert Robbs was not given a background screening when he was hired by the county recorder's office in 2003. He was ultimately arrested for theft and identity theft of another individual by accessing the county files. His prior arrest record and 3-year prison sentence would have been discovered had a background check been performed.
A bailiff in the same county had previously spent 9 years in prison for theft and drug possession/distribution, but his arrest record was not discovered until after he was arrested on suspicion of bribery and offering to exert improper influence on a public officer.
This county has since required background screenings on any new hires as well as for all existing employees in 2009. The expense of the screening will cost less that that was spent for the above-referenced incidents.
Some basic screenings to be completed on potential employees include:
Social Security Number search. This will allow you to verify any and all aliases and other names used for the past 7 years in any and all counties and states.
7-year county/state criminal record search. All county and state records will be searched for criminal records for any and all aliases and names used.
Credit history. This will show any bankruptcies, liens, judgments, collections and other financial history.
Motor Vehicle record. This will provide a detail of the person's driving record and any citations, suspensions, revocations, etc.
Education verification. This will allow you to verify the dates, diploma or degree earned and the highest level attended.
Employment verification. This will provide verification of employment dates, reason for departure, rehire status, job title and performance.
Professional license verification. This will provide verification of any state licensing and status.
Sex offender registry. This will list any past sexual offenses.
"The best offense is a good defense" isn't just a saying, it's good practice. The cost involved in performing these background screenings could potentially save your company thousands of dollars as well as showing your current employees, customers and insurance providers that you are a reputable company.
www.hna-net.com The High Cost of Not Screening Potential Employees
By: Sherry Krueger
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