The Economic Impact of Background Checks

Hiring the right candidate goes beyond reviewing resumes and conducting interviews. Background checks play a pivotal role in the hiring process by providing numerous financial benefits that employers shouldn’t overlook. Here’s a brief exploration of the economic impact of background checks, as well as evidence that they are not cost-prohibitive parts of the hiring process.

Reducing Turnover Costs

Employee turnover is an expensive problem. The process of recruiting, hiring, and training new employees consumes significant time and resources, and losing people within a year or less of their hiring deals a terrific blow to any company.

Conducting thorough background checks provides one means of ensuring new hires stay hired. Verifying potential candidates’ job histories and references leads to more informed hiring decisions. Knowledge is power! Knowing a person can be trusted to work hard and fit in reduces the risk of hiring someone who might be unqualified or leave the company shortly after being hired. This also keeps turnover costs down.

Boosting Productivity

Hiring the wrong person impedes productivity for several reasons. Verify backgrounds to ensure candidates have the skills and experience necessary to perform their duties and not interfere with others’ jobs and output. Background checks ensure candidates are qualified and reliable. This means fewer disruptions in the workplace, an equalized workload, smoother operations, higher profits, and better products and services.

Enhancing Safety and Compliance

Workplace safety and compliance are critical concerns for any organization. Background checks identify individuals with histories of violent behavior, substance abuse, insubordination and slacking off, and red flags suggesting potential risks to the workplace and current employees. It also ensures companies hire only qualified and safety-conscious individuals. This ensures compliance with industry regulations and standards, avoiding potential fines, insurance claims, and legal issues.

Protecting Company Reputation

The people who work for you represent your brand, and the negative actions of a single employee can destroy a company’s reputation. Background checks are proactive measures to protect the company’s brand and make sure employees are ethical, responsible, and courteous. Background checks help you find trustworthy employees who will safeguard the company’s brand and instill customers with confidence and goodwill, keeping them coming back to you!

That’s the economic impact of background checks in a nutshell. Third party background check companies can protect your financial bottom line by helping you find the right people for the right positions. Want to learn more? Contact us today for a consultation.