Still think that employee screening checks, verifications and supplier vetting services is an unnecessary expense? Ask any business owner who can attest to the financial and productivity consequences of poor hiring decisions. In addition, every HR professional understands the administrative nightmare associated with hiring an employee who is a poor fit for the organisation.
Is it possible to calculate the Return on Investment (ROI) for Employee Screening?
According to an international survey by Sterling Talent Solutions, when you start to factor in employee turnover and the cost of workplace fraud, it becomes easy to assign a monetary value to the true cost of not doing employee screening.
Employee Turnover: The true cost of a turnover depends on the organisation, but it has been estimated to be between 100% and 250% of the employee’s annual salary plus benefits.
Workplace Fraud: Workplace fraud is a global issue costing companies over 2.1 trillion pounds. Extreme cases include corruption, asset misappropriation or financial statement fraud. If a company ran thorough background checks on their employees, some of these issues could be avoided.
Once you look at the financial implications of not doing employee background screening versus having a robust screening process in place, it becomes clear that the ROI of background screening, including: customer satisfaction, productivity, better employee performance and an engaged workplace, continues to prove that it is an investment worth taking.
Are job-seekers being honest with the information provided in their applications and on their CVs?
The numbers may surprise you! These are the results of CV checks conducted by iFacts between 2015 and 2016.