Business owners and managers face an incredible amount of challenges in running a successful and profitable company today. And in most instances, employee salaries and related payroll expenses represent the single most significant expense every month. The average company spends between 20% and 30% of its gross revenue on its workforce.
Onboarding and training new employees is costly too. The average cost for small businesses to train one employee in 2017 was $1,886. This is terrible news for companies with high turnover rates. High turnover can take a toll that far exceeds its financial costs. It can damage company morale and erode culture, leading to even higher turnover.
With statistics like these, it’s no wonder that savvy employers are doing everything they can to find the right people. Hiring the right individuals can ensure that they like the position and duties and are a good fit with the company culture. Both of these factors can dramatically reduce turnover and its associated costs. Picking the right person for the job is a win-win for both the employer and the employee.
But setting out to find the right employees for your organization is one thing; finding them is quite another. Employee verification and criminal background checks are one way to increase the odds that you hire candidates that will be a good fit for your company and reduce the amount of turnover and training expenses associated with constantly hiring new employees.
Increasing the Quality of New Hires
Verification and criminal background checks are commonly the last steps in hiring an individual. By simply indicating that your company intends to complete a background check, you will discourage many non-qualified individuals from even applying. If they know they won’t pass the check, they don’t bother with applying. This action alone increases the quality of your candidate pool.
Throughout the employee verification and background check, you can compare listed qualifications, education, and experience to actual work records. You can also get an impression of the candidate from former co-workers and managers. By learning this information up-front, you can be sure that you know each candidate:
- Has the qualifications, education, and experience that they claim to have.
- Has a good history with past employers.
- Has a better chance of working well in your company’s environment and can likely be retained longer.
- Does not have a history of fraud, theft, violence, or harassment in the workplace.
When you know this information about your potential employees, it becomes easier to make informed hiring decisions and make sure the money you invest in training and onboarding is well-spent.
Protecting Your Company’s Future
Employee verification and background checks can also serve to safeguard and enhance your business and your other employees’ performance. First, it searches criminal databases and looks for indiscretions in the candidate’s past that could lead to behavior that puts other employees and your profits in jeopardy. While it is impossible to search all potential databases, there is a good chance that serious charges, such as fraud or those involving workplace violence, would be uncovered.
However, it is essential to note that some states do not permit employers to consider certain criminal elements in the background check. For this reason, it’s always best to work with a professional company with experience in conducting the background checks needed. This experience will ensure that only the legally valid and relevant information for hiring purposes will be revealed. The result is that you will protect your office’s morale and reduce the risk of damage or harm to your company.
And not only do you decrease the chances of hiring the wrong individuals, but you also increase the odds that you will hire the right people. A study by Aptitude Research Partners revealed that companies that use criminal background checks and employment verification processes improve their new hires’ quality. These processes help identify people who can help the company perform better, grow, and achieve long-term success.
Nearly all (93%) of the top-performing companies use background check and employee verification services. They report higher employee engagement, greater diversity, and lower turnover. These employee verification processes reduce overhead, promote workplace security, enhance culture, and provide a space for all employees to perform to their best potential.
While the employment verification process can seem straightforward, many pitfalls can have serious legal repercussions (asking the wrong questions, using protected information, etc.). These processes are incredibly valuable to the hiring cycle. Still, it’s best to work with a professional company to conduct the checks – this is the best way to protect your company and still get workforce screening benefits.