Fraud on resumes and applications is increasing, so it’s becoming even more important to do background checks on potential hires. Not only is it a security issue, a background check could save the company money in the long run.
Finding the right employee for Finance should include checking up on their background. An estimated 43% of job candidates lie on their resume.
Here are five more reasons to run that background check:
- Increases quality of hire — Since people aren’t always honest on resumes and applications, running a complete background check will ensure you’re hiring the person you think you are. Validating the accuracy of information a candidate provides reduces the risk of hiring someone who doesn’t have the required skills or education to fill the position. The cost of a background check is relatively small compared to the potential cost of hiring the wrong candidate. Learn about common areas of resume fraud here.
- Avoids workplace theft and violence — A background check will reveal any criminal history or legal issues that may not have been included on the resume. This is especially important with the rise of workplace violence and theft. One incident of workplace violence can cost an employer between $25,000 and $250,000, which does not include the high cost of turnover.
- Reduces turnover and discipline issues — Having appropriately skilled and educated employees will lower turnover rates, thus cutting hiring costs. They will also be more productive and require less training. You’ll also be able to identify “job hoppers” and candidates who have a sporadic employment history. Hiring candidates who do not have a criminal background will reduce the need for disciplinary measures.
- Creates a more productive office — Background checks discourage dishonest applications and show current employees that the company will take the extra step to ensure their safety and ensure that they’re getting qualified co-workers. If employees are satisfied with new hires, instead of wondering how they could have possibly gotten the job, the staff will be more stable and successful.
- Avoids litigation from negligent hiring — Companies are being taken to court more often for negligent hiring. A thorough screening process will mitigate legal risk and reveal potential legal pitfalls such as: identity theft, data and financial breaches and invalid employee identification.