In today’s economy, businesses are forced to look for ways to cut costs now more than ever. But before you start slashing your budgets, make sure you take a strategic approach to reducing costs within your business.
You should make sure that key processes—such as gathering background information on new hires—don’t get neglected. Otherwise, your business could face even greater costs in the long run.
In fact, according to national economists, one of the key ways to avoid unnecessary costs within your business is to make sure that you never forego background screenings on new hires. Background checks are a great way to avoid not only the hassle of hiring the wrong candidate, but also the many costs that come with such a mistake.
What Are the Benefits of a Background Screening?
Background screenings are a vital part of the hiring process. These comprehensive checks show you whether a candidate is really qualified for the position, giving you insight into their previous experience and employment history, their level of certification, and more.
As well as this, you can also glean information about whether the candidate will be a good culture fit for your business or if they have potential to be a hazard to other employees. If they have a suspicious history, you can better determine whether they will contribute or detract from the kind of working environment you want to maintain.
Ultimately, economists advocate strongly for background checks because they are a tool to help you weigh the risks of hiring a certain candidate. Failing to do background checks could mean your business becomes subject to negligent hiring claims down the road, which can be damaging to both your reputation and your bottom line.
How Can a Background Screening Save You Money?
In addition to helping you avoid negligent hiring suits, background screenings can end up saving your business a lot of money in other ways. One of the ways they can do this is by reducing occupational fraud and theft. Background screenings will help identify anyone who has in the past dipped their fingers in company funds, as well as those who have a history of not being financially responsible.
Using criminal record checks will also help uncover those who have a history of theft, although it’s important to note that not all occupational fraud or theft cases are always reported, so speaking to previous employers is also important.
What Else Do Economists Say about Background Screenings?
Most importantly, background screenings eliminate overall risk for hiring managers by giving you information about a candidate that could potentially harm your business. Background screenings solve important economic issues such as adverse selection or asymmetrical information because you will have the knowledge you need to make an informed decision prior to putting your company at risk.
Overall, background screenings are an integral part of hiring a new manager for your business. If you miss this step, you could be putting your business and your current staff in jeopardy. Beyond this, you can protect your valuable data assets and save costs by taking the precautionary steps of conducting background checks during the hiring process.