Happy New Year!

Many companies start their fiscal year on January 1 and end it on December 31—the one-year period that companies and governments use for financial reporting and budgeting. Therefore, many companies put off hiring new staff until then, waiting for that new budget.

Well, January is here and those companies (maybe yours) will be hiring new employees. I’d like to help you make the best choices and avoid risk by stressing the importance of thorough employee background checks. 96% of employers conduct some kind of employee background check (HR Daily Advisor), but is it enough? Is it done by professionals? Will it actually protect your company from crime, violence, or unqualified workers? The answer to these questions is too often “NO.”

The Cost of a Bad Hire

According to a CareerBuilder survey, 75 percent of employers said they have hired the wrong person for a position. Of those who had a bad hire affect their business in the last year, employers said one bad hire costs them nearly $17,000 on average.

Employers reported these issues:

• The employee didn’t produce the proper quality of work: 58 percent
• The employee had a negative attitude: 52 percent
• The employee didn’t work well with other employees: 51 percent
• The employee’s skills did not match what they claimed to be able to do when hired: 49 percent
• The employee had immediate attendance problems: 45 percent

Among those employers who had a bad hire, 37 percent said it was because the candidate lied about his/her qualifications. The most common ways employers say a bad hire affected their business are:

• Less productivity: 36 percent
• Compromised quality of work: 33 percent
• Affected employee morale negatively: 31 percent
• Lost time to recruit and train another worker: 30 percent
• Cost to recruit and train another worker: 30 percent

These survey results would frighten any employer! Although most employers want to verify previous employment and educational credentials, check references, and identify criminal history, it’s not only about crime or misconduct. A thorough background check should include checking professional licenses/certifications, credit reports, motor vehicle records, and a Social Security fraud check, as well as the information on a resume.

The Resume

46% of employees said they knew someone who falsified their resume (HR Daily Advisor). This could result in the hiring of an inexperienced, unqualified employee who may even lack a required license, e.g., in the medical, real estate, banking, or other industry. An incomplete background check could result in danger in the workplace, lawsuits, or loss of reputation. A bad employee might have access to critical company data or healthcare information that could be damaging in the wrong hands.

A professional background check should verify sources for employment and education—it’s easy for an applicant to use a friend’s name as a reference rather than the HR department, or to name a school that is not legitimate. A professional and experienced background check provider will acquire the most accurate and verifiable information possible.

Background Checks for Specific industries

The U.S. Department of Health and Human Services requires specific checks for those working in the healthcare field, and with children or the elderly. And for anyone working in financial services, or those handling money, a credit check should be done. The background check should be tailored for your specific industry.

Avoid the Nightmare of a Bad Hire

You CAN avoid the nightmare of a bad hire and start the new year right by having a professional handle your employee background screening. An experienced professional will have a consistent screening policy across employees, and will know the laws and regulations to abide by when conducting a check on potential or existing employees.

Why Choose The Hire Authority for Your Background Screening?

Be safe, not sorry. At The Hire Authority we are thorough in our screening, which guarantees that you will receive information that is current and relevant. We care about your security and we will work to keep you safe from harm or unnecessary problems.

We’d be happy to answer any questions you may have and give you a quote. Call (508) 230-5901 or visit our website www.hireauth.com.

The foregoing should not be construed as legal advice. Employers should always consult their own legal counsel for advice on labor and employment matters.