According to a Brandon-Hall research brief commissioned by Glassdoor, a staggering 95 percent of employers surveyed admitted to making hiring mistakes by recruiting the wrong people each year. Bad hiring is not an uncommon occurrence. Poor recruitment stems from the entire recruitment process followed by a company. It can have a deep impact on team performance, company culture, employee safety, business reputation and overall business performance. Can bad hires be avoided? Fortunately, yes.

Pre-employment screenings or “background checks” are typically conducted by employers during the recruitment process. A background check looks into the employees professional and personal background, criminal records, skills, qualifications and health.

Is the candidate a threat to the team? Does he possess the skills he claims to? How has his integrity been at his previous workplace? These checks into the candidates past and present help employers answer some of these questions and identify if the candidate would be a right fit for the role and company. In the long run, this saves the company hiring costs by keeping employee turnover in control. According to a study by Harvard Business Review, as much as 80 percent of employee turnover stems from poor hiring decisions. Investing in pre-employment screening is highly recommended for small, medium and large businesses.

Background checks help verify identity

Background checks look into the identity of the candidate. Documents such as Aadhar, PAN, passport, driving license, marriage certificate and birth certificate can be verified to ascertain the genuineness of the individual. An appalling statistic states that the Federal Trade Commission (FTC) received 4.8 million identity theft and fraud cases in 2020, up 45 percent from 3.3 million in 2019.

They validate credentials and qualifications

While most candidates applying for jobs are truthful about their experience and qualifications, there are a handful of cases where candidates might exaggerate or even fabricate their credentials. While hiring, especially for small businesses that heavily rely on compact teams, getting an employee onboard who does not possess the skill set he claimed to can be damaging. Looking into the candidates employment background, conducting reference checks and speaking to the institutions that the candidate has named in his profile can go a long way in ensuring the candidates legitimacy and credibility.

They ensure safety of the workplace

Hiring an employee with a violent past or any criminal involvement can be detrimental to the safety of other employees as well as the reputation of the company. It is recommended to engage in criminal background checks which look into any felonies, crimes or criminal affiliations in the past or any current outstanding warrants. Keeping their employees safe is a crucial task for any organisation.

Screening saves long term hiring costs

A clear hiring strategy can help avoid bad hires and save costs in the long run. Bad hiring leads to higher employee churn. Investing in the hiring process repeatedly is a huge cost for companies. According to estimates from a recent survey, more than 40 percent of the companies surveyed spent around USD 25,000 on a bad hire, while the other 25 percent revealed that poor hiring had cost them more than USD 50,000 in the previous year.

Pre-employment checks avoid bad hires

One of the primary factors leading to bad hiring is fast hiring. Not investing time in the hiring process to holistically evaluate the candidate can cost the company a lot of money in the long run. According to the National Business Research Institute, 43 percent of the companies surveyed believed that rushing to fill the vacancy is the biggest cause of bad hiring. Screening areas like the candidates education, employment history, family background, criminal records, credit ratings give the organisation a better understanding of the candidate. The recruiter can then decide if the candidate would be a good fit as per the company culture, role requirements and peers. Having an employee that easily fits into the firm is a value add, and can avoid conflicts in the future.

Pre-employment background checks are an essential part of the hiring process, especially if hiring for key positions. Globe Detective Agency’s due diligence services look into employment screening, are highly confidential and are tailored to meet the needs of the company. Find out more here.

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