Every organisation, whether small or large, invests a substantial amount of effort and money in recruiting candidates. With embellished resumes and workplace crimes becoming commonplace, there are increased chances of making a bad hire, resulting in unwanted losses. This can be disastrous for small companies who already operate on a tight budget. A well-designed background screening program scans every detail related to the employee to help mitigate the risk of a bad hire. Many small-scale businesses fail to use background checks for small companies because of budget constraints or preferences. If you are one of them, these benefits of background screening explain why you must have a screening process in place.
In their quest to secure the job with a good pay, candidates embellish their previous employment details on their resume. Our research shows that as high as 13.5% resumes show falsified salaries. Now, say you hired an employee who claims his monthly salary was Rs. 40,000, when in reality it was Rs. 32,000. You decide to pay him a monthly figure of Rs. 48,000 (20% hike). By paying on the basis of the inflated figure, you incur a monthly loss of Rs. 9600, which will run into lakhs over time. Additionally, you also incur costs on employee benefits. Furthermore, when you find out the truth, you have to incur additional costs on investigations, compliance audit, and litigation if any. Eventually, you end up rehiring. Compare these losses to the investment in background checks, which cost only a few 100 rupees for a single resume. While a background check may seem expensive to you, in reality it is a cost-effective investment that saves you from financial losses.
Improved Quality of Hire
Talent acquisition is a struggle for almost every company. With candidates falsifying information on their resumes, finding qualified and honest employees is difficult. Our research shows that 2% employees falsify educational qualifications, 3% fake residential details, and 14% embellish previous employment information on their resumes. All these issues lead to bad hires, resulting in losses in terms of finances and credibility. A comprehensive background screening process filters fake candidates leaving you with quality hires.
Reduced Employee Turnover
The higher the rate of employee turnover in your organisation, the more losses you incur due to additional recruitment. Not having a background screening process in place increases your risk of a bad hire which, in turn, results in an unwanted turnover of employee. When you know about the background of an employee before you offer the job, you can reduce the chance of a wrong hire. Hence, background screening will help you in retaining talent.
Reduced Risk of Negligent Hiring
Without a background screening process, your company has high chances of negligent hiring, which results in unnecessary losses. Negligent hiring is a legal term based on the premise that an employer is liable for an employee’s wrongdoings if they did not conduct background checks while hiring the employee, which could have prevented the incident. If an incident occurs that you could have prevented by knowing an employee’s past, lawsuits get filed and you may suffer extensive damage. As background screening exposes an employee’s history, it saves you from costly lawsuits and damaged reputation.
Improved Workplace Safety and Security
Workplace incidents, including theft, sexual harassment, problems due to drug abuse, etc. have made organisations realize the value of background screening. It is a well-known fact that candidates do anything to get the job on offer. Apart from faking information on their resumes, there are candidates who hide their criminal backgrounds. Other than employment and educational information, background screening also scans criminal records. Hence, it helps ensure a safe and secure workplace atmosphere, which, in turn, boosts your image.
All these benefits of background screening allow small firms to attract best talent within their budgets, reduce the risk of financial losses, and boost their reputation. So, if you do not have a screening system in place, it is time to make it a part of your recruitment process. Hire a background screening service for best results in a cost-effective manner.