4 Benefits of Conducting Employee Background Checks

4 Benefits of Conducting Employee Background Checks

A background check is an excellent approach to lower risk and responsibility when employing staff. Conducting background checks on employees can limit risks and liabilities resulting from negligent hires. In addition, by avoiding hiring someone with a criminal background, you can minimize your costs of hiring new employees and the cost per hire. These are some of the benefits of doing background checks before hiring someone in your organization.

Reduces Risk of Workplace Violence

Conducting extensive background checks on your staff is one of the best strategies to stop workplace violence. This screening should include professional references, extended employment verifications, criminal record checks, and other business-relevant checks. Regardless of the size of your business, you must use the correct background screening programs to eliminate the risks associated with work-related violence.

The number of violent workplace deaths has increased in recent years. In 2016, there were 866 fatal workplace incidents, including five hundred homicides and three hundred forty-four shootings. This year, homicides were the leading cause of workplace deaths, followed by transportation incidents. Travis Vance, an attorney with Fisher Phillips in Charlotte, N.C., states workplace violence is a growing concern in the healthcare industry, where patients may hit employees. In addition, disgruntled family members may lash out at staff after a patient dies.

To reduce workplace violence, all companies should introduce a workplace violence policy. The policy should include procedures for reporting incidents and requiring employees to disclose any protective orders for themselves or others. It should also prohibit the use of weapons in the workplace, including firearms. This also applies to employees with lawful carry permits.

Reduces Cost-per-Hire

Performing a background check on your employees is a critical part of the hiring process. It helps you identify quality candidates and flags issues that could cost you money. On average, it takes a new hire a month or more to adjust to the role, and this time is often lost productivity. In fact, according to a recent study, hiring a new employee costs a business up to 2.5% of its revenue.

Depending on the type of position, you may need to spend as much as 16 to 20 percent of the new hire’s annual salary. This number will be lower for entry-level jobs and higher for highly specialized roles. However, you can reduce costs by hiring 25 or fewer employees in similar positions.

The cost-per-hire can be lowered by using employee referral programs. This practice can save you money by reducing advertising expenses. In accordance with a Society for Human Resource Management study (SHRM), the cost of hiring a new employee is about $4,000. This number is higher if the employee is a higher-level professional. Also, the cost-per-hire can vary depending on a company’s size, hiring volume, and the seniority of the positions that need to be filled.

Reduces Risk of Lawsuits

Conducting criminal background checks on your staff is one of the best strategies to reduce your lawsuit risk. These reports contain records of a person’s criminal history on the local, state, federal, and international levels. This investigation is vital to protect you from lawsuits based on negligent hiring. In addition, this type of background check is worth the time and money it takes, as a successful lawsuit can cost you millions of dollars.

Background checks are an essential part of the modern hiring process. They are necessary for preventing liability and promoting a safe work environment. But making the proper service choice is critical to guaranteeing that your screening is enough. In addition, recent lawsuits against significant corporations highlight the need for careful selection of screening providers.

Federal law requires employers to follow specific procedures when using background information on applicants and employees. These laws prohibit discrimination based on race, national origin, sex, religion, and genetic data and are enforced by the Equal Employment Opportunity Commission.

Reduces Turnover

Employee screening helps reduce turnover costs by preventing employees with criminal histories from taking on your company’s jobs. The replacement of an entry-level employee can cost as much as 50% of their annual salary. This is a significant expense for the company, ties up your resources, and slows operations down. Employee screening can also help prevent employee theft and fraud.

Studies have shown that businesses that use background screenings to screen new employees have lower turnover rates. This is especially true for industries where turnover rates are high, like software, IT, retail, media, government, professional services, nonprofit services, and more. In these industries, the cost of turnover is substantial. It can take an average of six months to hire and train a new employee, resulting in an additional year of lost income.

Background screening also reduces turnover by hiring the right person for the job. The right employee can significantly impact a company’s overall health and happiness. Moreover, it can make the working environment more productive and safe. This can be a virtuous cycle: quality hires create a safe and stable environment, which is essential for attracting new employees.

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