Mitigating the Risk of a Poor Hire
The interview went well, with the candidate for the position both impressing and impressive. It seems a perfect fit and there is a temptation to hire the person right there and then, if not soon after. But what happens if instincts don’t prove correct and you end up hiring the wrong person for the job because there was no pre-employment screening?
It’s more common than one might think. According to a CareerBuilder survey, 75 per cent of employers admit to hiring the wrong candidate at some time, with the average cost of a “bad hire” coming in at almost $17,000. And as incredulous as it may seem, one in four employers say they do not conduct pre-employment background checks.
“If an employee isn’t well-suited for the job or has a bad attitude, the time they spend not working could significantly impact your bottom line. That’s why it’s so important to make sure qualifications are substantiated,” Ben Goldberg, CEO of Aurico, a CareerBuilder company, is quoted saying.
“It’s a hard cost to quantify, but it adds up when you consider the loss of employee morale, the additional supervision that employee needs, productivity loss for the organization, revenue that’s not being generated and client relationships that could be turning sour as a result of bad impressions.”
Background checks “are vital” as employees are an “extension” of company
Employers who do conduct pre-employment screening are reviewing a number of factors, including criminal background (82%), confirming employment (62%), and confirming education (50%).
“As you are hiring candidates who represent you and act as an extension of your company, accurate and thorough background checks are vital. Especially because the cost of replacing an experienced worker who doesn’t work out can cost a decent amount of that individual’s salary,” Goldberg writes.
Writing for Entrepreneur, Robert DelPonte identifies three of the most common mistakes an employer makes when going through the hiring process: providing a poor applicant experience, making decisions without all the data, and underestimating the importance of onboarding.
“According to The Brandon Hall Group, organizations with a strong onboarding process improve new hire retention by 82 per cent and productivity by over 70 per cent. Excited candidates are hired and they become engaged employees on day one,” he writes.
“On the flip side, companies with weak onboarding programs lose the confidence of their candidates and are more likely to see individuals seek out new employment within the first year. Imagine, after all the time and energy of hiring a great candidate she walks out the door?”
An Effective Tool, If Done Properly
Pre-employment screening is an effective tool for employers to predict job performance and company fit, allowing candidates to be screened on a wide range of factors, including the ability to think critically, on their personality, personal motivation, and many others. But it can be a daunting task, one requiring the services of experts such as the team at Investigative Solutions Network.
Conducting pre-employment screening on job applicants is extremely important in order to identify the most qualified and motivated candidate. By verifying past employment history, completing detailed reference checks and social networking reports, ISN is able to mitigate risk during the hiring process. This will help to ensure clients choose the right candidate, lowering the cost of hiring and reducing the risk of liability.
ISN specializes in the following pre-employment screening methods: Education and Employment Verifications, Employment Reference Reports, Social Network Reports, and International Criminal Background Checks. For more information on our pre-employment screening services, click here or call 1-866-790 ISNI (4764).