Why are Background Checks Actually Important to your Business Success?
There is no escaping it; a bad hire can cost your business, in more ways than one.
In 2016 The Association of Certified Fraud Examiners estimated that the typical organization loses 5% of revenues in a given year as a result of occupational fraud. From lost time, money and productivity, skipping vetting checks and being tempted to just use an informal screening process can really cost you.
The benefits of scaling back on employee checks seem tempting; thorough background checking is often considered to be a slow, manual and even expensive process if you choose to outsource it. But with new online software solutions, businesses can take control of their employee vetting on a simple, easy-to-use platform that hands back the control to business owners, taking the risk out of hiring once and for all.
Be Smart. Background checks are an important step in the recruitment process, ensuring as much as possible that you have the right candidate for the role, who has the right experience and where appropriate meets the necessary industry regulations. Plus, you can prove due diligence if anything should happen.
Reduce Staff Turnover
Hiring new staff takes time; now imagine having to do it twice because you lost your first hire due to a poor business fit. And that doesn’t even factor in the cost; the US Department of Labour estimates that the cost of a bad hire can equal 30% of the employer’s potential first-year earnings. So ensuring that you are thoroughly background checking will help to mitigate this risk.
Safety and Happiness
Primarily, hiring a bad candidate can affect the health and safety of others in the workplace. But a bad hire can have wider impacts too; a survey of more than 2,100 CFOs revealed that 95% of respondents think a poor hiring decision at least somewhat impacts the morale of the team, causing a negative ripple effect through the organisation.
So what does all this mean for your business? In short, it pays to invest in Background checking. If you are interested in a simple, online background checking tool then get in contact with the experts at VettingGateway today and see how they can help.