Worker Shortage May Cause Employers to Cut Corners on Employee Background Checks

We’ve all heard about the worker shortage due to people choosing to receive the government’s pandemic unemployment benefits rather than go back to work. There are “Help Wanted” signs everywhere. Especially hard hit are the restaurant, hospitality, and retail industries, but manufacturing, healthcare, technology, education, and other industries are also finding it hard to find employees.

A dangerous trend is developing, that being a tendency of employers to hire whoever they can get without a thorough employee background check. Oh, they might call the references listed on the candidate’s application (although these could be false), but other checks that could protect business safety, business reputation, and loss of revenue due to fraud or theft are being overlooked. Even lawsuits could result from a bad hire.

Employee Theft

According to employee theft statistics from Leftronic, an employee recruiter:

• 75% of employees have stolen from their employer at least once
• An astonishing 95% of all businesses in the US are hurt from employee theft
• Employee theft costs US businesses $50 billion annually
• 42.7% of retail shrinkage is due to employee theft
• 59.1% of employees who commit thefts are male
• About 75% of US businesses are affected by time theft

Workplace Violence

According to the Bureau of Labor Statistics, 20,790 workers in the private industry experienced trauma from nonfatal workplace violence in 2018. Of those victims who experienced trauma from workplace violence 71% were female and 64% were aged 25 to 54.

Every year, millions of American workers report having been victims of workplace violence. In 2018, assaults resulted in 20,790 injuries and 453 fatalities, according to Injury Facts®. Certain industries, including healthcare, service providers, and education are more prone to violence than others.

Employee Substance Abuse

According to the National Council on Alcoholism and Drug Dependence (NCADD), more than 70% of those abusing illicit drugs in the U.S. are employed, the majority of which are categorically binge drinkers.

According to the National Safety Council, about 16% of employees live with a substance use disorder. An estimated 80% of drug users supported their drug use by stealing from their place of employment. This study reported that the highest rate of prescription pain medication disorders is among workers in the services sector.

Additionally, researchers divide the $81 billion spent per year on drug abuse in the workplace into three categories:

• Absenteeism
• Healthcare costs
• Lost productivity

Substance abuse creates expensive medical, social, and other problems for both employees and employers. They threaten public safety, impair job performance, and cause accidents for which employers are liable.

Too Costly to Ignore

The damages resulting from lack of an employee background check are too costly to ignore. A thorough employee background check should include:

• Misdemeanor and felony criminal records searches at the county, state and national levels (international also, if necessary)
• Sex-offender status searches
• Social Security number traces and validations
• Employment and/or education verifications
• Professional license verifications
• Checks on references, credit reports, civil records, driver’s license and motor vehicle records
• Military records verifications
• Workers’ compensation history searches
• Healthcare sanction checks
• Address history checks

Because there are many federal, state, and county laws and regulations concerning the rights of employees regarding background checks, it is important to have the checks done by an experienced professional who is up to date on these so that an employer is not in violation. This professional will also make sure that the check is thorough and done correctly to ensure you hire a reputable person.

Why Choose The Hire Authority for Employee Background Screening?

We are experienced professionals who keep abreast of all the laws governing employee background checks so that you do not risk breaking them and paying the consequences. 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 within your budget to keep you safe from harm or unnecessary problems.

We’d be happy to talk to you about screening your employees. Call us at
(508) 230-5901 or visit our website
www.hireauth.com with any questions you may have.

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