Pre-Employment Screening is the best way to avoid the high costs associated with employee turnover and to protect your company financially.
Getting a good, high-paying job is becoming increasingly important to people in the current economy, which is seeing historic inflation. Out of desperation to get ahead, people are more likely to lie on a resume, application, or cover letter in order to get the job they want.
In this climate, it's important that a proper Pre-Employment Background Check is performed in order to make sure that a candidate is telling the truth about their skills, education, and work history. Performing criminal background checks is vital to properly screening job candidates in addition to verifying their qualifications.
Pre-Employment Screening Reduces Costs
Without proper Pre-Employment Screening, an employer risks the costs of having to replace a bad employee.
According to Gallup, how much it costs to hire a new person can range from one-half to two times the person's annual salary – and that's a very low estimate. There could be about $660,000 to $2.6 million worth of turnover and replacement costs for a 100-person company that pays $50,000 per year.
Consider these costs:
- The cost of advertising and searching for new candidates.
- The cost of hiring and onboarding a new employee.
- The cost of reduced productivity due to staff shortages.
- The cost of training a new employee.
- The cost of mistakes made during training.
- The cost of losing a good employee due to hiring a bad one.
Even if an applicant seems well-qualified, only a thorough background check done by Employment Screening Specialists can help you avoid the costs of a bad hire.
Factoring the Impact of High Employee Turnover
In simple math, employee turnover is expressed as a ratio. This is how many employees left during the whole year divided by the number of employees there were at the start of it. For example, if a company has 100 employees and three of them leave, the turnover rate is three divided by 100 or 3% – a relatively low turnover rate. But for a smaller company, it will lose 30% of its employees if it has a staff of 10 and three of its employees leave. This can have a devastating impact on the company.
It costs a lot of money when people leave their jobs. It can cost even more money if a bad employee poses a risk or threat to the company, its employees, or the public. Smart businesses devote a significant amount of time and resources to determine if a job candidate is qualified and if they have a clean criminal history.
Cost-Effective Employment Screening Services
Pre-Employment Screening and Employee Drug Testing policies help reduce the the high costs of turnover.
You can make better hiring decisions in the long run if you know a lot more about your candidate and how they're likely to perform on the job. Hiring more qualified employees will increase your company's chances of success. They may not apply for jobs at all if they are aware that false or misleading information will be discovered.
CIC's mission is to assist employers in making the best hiring decisions possible in order to protect their businesses in the long run. We understand the desperation that comes with trying to staff and maintain a business during a period of economic uncertainty, and we understand why some employers are tempted to skip background checks. We strongly advise against it.
CIC offers a range of cost-effective Employment Screening services that you can choose from to help you make better decisions for your business and employment needs.
Consult with us to learn about how we can help your company improve its hiring process, reduce turnover, and increase productivity.
For more information about this article, or general Employment Screening Services, please contact us at 1.800.573.2201 / 419.874.2201.