According to a nationwide survey from the PWC network, approximately 65% of Americans were searching for a new job in August 2021. That’s nearly double the number of reported searches in May of the same year. There’s no doubt businesses are hiring. But fitting the right candidates with the perfect jobs can be a grueling task. The right employee background check helps immensely with that goal. But what are some risks of not running an employee background check?
Whether you refer to it as omitting details, fabricating information, or padding experience, statistics show that up to 81% of applicants lie at some point during job interviews. That’s just during the interview stage, mind you. Many applicants feel lying or “padding the truth” is the only way to get the job they really want or need. If the fibs in question won’t interfere with the safety and efficiency of the job, the employer might overlook it. However, blatant lies about education, job experience, training, and licenses can result in serious and potentially dangerous issues for the candidate and other workers down the road. The right employee background check can weed out the players right off the bat.
Finding the best working team for a business isn’t always an easy task. Employees and companies don’t always fit, and turnover is common in almost every industry. A bad hire can cost a company 30% of an employee’s expected annual earnings, or approximately $15,000 per wrong hire. But that’s different from negligent hiring. The term negligent hiring refers to a situation where the employer knew the applicant did not have the necessary credentials to do the job or was otherwise unable to safely, and the person was still hired. Negligent hire claims occur when the wrong hire is either injured on the job or hurts others. Negligent hire lawsuit settlements average at around $1 million, and the courts tend to side with the employee up to 79% of the time. So don’t cut corners with your background checks.
Company Fraud and Hacking
In 2020, 80% of American companies reported significant issues and losses due to cyberattacks. Cyber security and fraud issues have cost Americans $6 trillion in 2021, which is up from $3 trillion just six years prior. Those numbers are expected to rise as high as $10.5 trillion by 2025. As more and more Americans work online, it’s especially important employers continually run the right background checks on all employees who have access to any company data or computer networks either in-office or remotely.
Safety and Security Concerns for Employees and Clients
In 2019 alone, there were nearly 21,000 workers who experienced trauma from non-fatal violence in or at the workplace. Most of those workers were female between the ages of 25 and 54 and in the healthcare industry. But workplace violence can affect any industry. It’s the employer’s responsibility to maintain balance and safe conditions at the workplace. And that starts with hiring the best team for your company. Give us a call to connect with a background check investigator to clean up any issues you might already have and get your business back on track.