Employee Background Check is essential in any hiring process, regardless of the size of the organization or the nature of the industry. A research study by Career Builder in the hiring of employees has found that almost 38% of the people provided falsified information about previous job experience and 18% had lied about their skills. When small organizations opt for background verification, they are provided with the right information which helps them select the suitable candidate for the job.
There is a famous saying, "Prevention is better than Cure.” Screening of an employee in the early stages does just that as it ensures that the business doesn’t suffer later due to a wrong employee hired. Consider a case of an employee who is newly hired and has falsified information. It would result in shoddy work, and there will be a loss of trust from the clients.
Repercussions of Avoiding a Complete Verification
In today’s world, a significant number of applicants fudge their CV’s due to cut-throat competition and scarcity of jobs in the market. In 2012, Scott Thompson, (Ex-yahoo CEO), was found lying on his resume about having computer science and accounting degrees from Stonehill College in Easton, Massachusetts.
After investigating it was clear that he had only an accounting degree. He was immediately asked to resign, and this episode brought plenty of negative publicity to Yahoo. Despite such risks associated, small businesses usually tend to avoid the pre-screening activities.
If you are still wondering on your options of whether to go for a reputed background check company, the following are some of the benefits of employee background check:
1) Ensures a Safe Working Environment
An employer must provide its employees with a safe working environment. A prospect who was involved in criminal activity (For, e.g., Drugs, theft, reckless behavior, etc.) could cause a lot of damage to the employer. There may be a potential threat to other employees too. Hence, it is necessary to do pre-employment screening to ensure a healthy work environment. The benchmarks that the employer has in place directly influence the employee’s conduct, so it becomes important to set very high standards.
2) Reduction in Re-Hiring Costs
Employing a person who has falsified information and is dishonest costs the organization heavily. You lose out on hiring and training costs, severance pay, and also the replacement cost. You could have avoided all these losses by shelling a lesser amount in the beginning. The value that Employee Background check provides is much more cost-effective than what you would incur otherwise.
3) Quality of the Talent
With the right employee background checks in place, an employer can not only mitigate the compliance, reputation, and legal risks but also will avoid poor quality hires. And this will, in turn, increase the productivity of the organization. Unlike large corporations, small businesses have fewer resources at work, and they depend entirely on their ability to get the job done.
Background checks are difficult, but as far as investments are concerned, they yield high returns as hiring mistakes are minimized. Small businesses that ignore the employee background check run the risk of not merely employing untrustworthy, incompetent candidates, but nurturing an atmosphere wherein deceit on the part of the job seeker is rewarded.