How Much Does a Wrong Hire Costs a Company?
- 30% of the company’s first-year earnings, as per the US Department of Labor
- CareerBuilder reported three in every four employers accepted that they hired the wrong candidate for a job, and it cost them approx $14,900.
- Wrong hires cost $240,000 in expenses, according to The Undercover Recruiter.
The above figures are staggering, suggesting that background check is so crucial.
Pre-employment checks allow employers to confirm a potential employee’s records and whether they are honest & trustful.
Here, we’ve Compiled the List of the Most Prevalent Types of Background Checks:-
Reference Check
A common practice followed during the hiring process is asking applicants for references, generally HRs, managers, coworkers at their previous organizations.
A reference check enables hiring managers to inquire about the candidate’s past performance and their professional relations within the organizations.
It is best to hire a screening company to conduct the reference check from the applicants’ details.
Sexual Offender Registry Check
It is highly recommended that employers perform a Sex Offender Registry Search with their potential employees. Such a check rules out any possibility of hiring someone having a history of sexual offenses.
It is even more important if you hire someone to deal with minors at schools or daycares. Performing this type of background check lowers the company’s risk of office sex offenses (or violence). If neglected, it potentially leads to retention lawsuits or negligent hiring accusations.
Professional License & Certificate Confirmation
One of the most common falsehoods that a candidate may put on their resume is wrong professional credentials. Often, individuals tend to embellish accomplishments on job applications and their resumes to increase hiring odds.
However, hiring managers is quite complicated to determine whether they have earned the licenses or certifications. It could lead to hiring an unqualified candidate or promotion to someone who doesn’t deserve it.
Hire the best background check service provider to confirm all the professional licenses & certificates for various industries for different position titles, verify if a degree or credential has been earned, confirm the date, and identify any fictitious information provided by the applicant.
Social Security Number Trace
Sometimes applicants lie about their identity to gain employment. A simple trace of their Social Security Number—Matching Department of Homeland Security and Social Security Administration’s record—done by the hiring managers determine whether the personal information provided by a candidate is truthful. It verifies if the applicant is eligible to work in the United States of America.
Credit Background Check
This type of background check involves looking into a prospective applicant’s credit history. An employer can obtain an individual’s credit history from three of the largest credit agencies: Equifax, Experian & TransUnion.
The information can be produced once a year for FREE. However, in some states such as New York and Chicago, it is illegal to hire based on credit scores.
Know Your Candidate: Comprehensive Employment Screening
Background checks can undoubtedly save you from hiring someone dangerous or unsavory to keep your workspace safe. Also, reduce your company’s liability & bad hires.