The increasing competition amongst candidates is causing many to lie on their resumes, a step potentially dangerous for any business. Performing background checks on future employees is an essential step that all organisations must take to ensure that their business is protected against theft and fraud.
Failure to perform such checks can lead to several legal complications and cost your company a lot of money in the long run. Investing in thorough employee checks today can help you save substantial long term costs.
Potential risks of negligent hiring
As many organisations are in a hurry to hire professionals, experts advise businesses to take background checks seriously. Some of the most common facts that are tweaked in a resume include education level, university attended, job responsibilities, skill levels and previous salary drawn. Most candidates include falsified information in their resume to either gain advantage over other candidates or to mask their intentions. The risk of employee fraud increases if the hiring company fails to conduct its due diligence.
Negligently hiring employees could result in violence and assaults at the workplace. It also increases the risk of employee turnovers and job related accidents. Any liability charges filed because of the employee’s actions may cost the company millions owing to negligent hiring. The possible influence of drugs and alcohol can tamper employee productivity, leading to more losses. Theft and fraud committed by employees can cause a company millions. It is estimated that embezzlement costs companies billions each year.
Responsibilities of the employer
The potential risks of hiring an employee without performing thorough checks can be damaging to a company and its reputation. As an employer, it is your responsibility to know your employee. Employees with past accounts of violent incidents, alcohol and drug abuse and criminal records should be carefully dealt with. Any damage caused by an employee’s known or unknown past record will make the company liable.
If an employee has a past record of negligent driving or drunk driving, the organisation should not allow him/her to use company cars. Similarly, candidates with a history of violent outbursts are not suited for client interaction or personalised home visits. It is every employer’s responsibility to learn of any undesirable traits the candidate may possess. Performing a background check on an employee is not considered a violation of privacy.
Using professional services
Instead of spending days on performing background verification, many companies opt for the services of businesses that specialise in gathering such information. Professionals in background checking offer concise and detailed reports regarding the authenticity of information provided on the resume and interview. Detailed background checks include clarification in criminal history, illegal activities, financial background, educational background, credit history, and reference verification.
Benefits of background checks
One of the biggest benefits of performing detailed background verification is the satisfaction of hiring a promising employee. Including productive employees in your company not only boost your revenue but also reduces employee turnover (the ratio of employees that were replaced in a specific time period). Background checks help candidates be more honest about their qualifications and create a transparent relationship between the employee and the organisation.
About the Author: Penny is an expert associated with CV Insight, a leading group of employment screening specialists. If you are looking for services like background checks on candidates, contact our professionals for helpful advice. CV Insight also specialises in screening your employees to help you hire qualified candidates.