When hiring, the key for businesses is to create a mindset where they are focused on investing in prospective employees for the long-term. Below, eVerifile outlines the result of a negligent hire, its impact on a company’s bottom line and how pre-employment screening can alleviate negligent hiring.
What is a bad hire?
A bad hire usually stems from an employee who did not undergo pre-employment screening and may have either a criminal history, drug history or does not possess the proper credentials to fulfill the job position. The details of their past may be unveiled during the duration of their employment and it may be too late for a company to take action against the employee. The company now faces a negligent hiring decision, which will most likely result in monetary and legal consequences.
How much does a bad hire cost?
According to a report by Human Resources iQ, a source for HR professionals, the U.S. Department of Labor estimates that the average cost of a negligent hire can result in 30% of the individual’s first year potential earnings. In addition, Career Builder surveyed 6,000 hiring managers and HR professionals worldwide who reported that 27% of employers in the U.S. who experienced a negligent hire paid up to $50,000 in damages.
These compelling statistics reveal that pre-employment screening is integral to the success of a business and a negligent hire can impact a company’s bottom line. Companies can prevent bad hiring decisions by conducting pre-employment screening to acquire the knowledge and information needed to make the best hiring decision for their company.
How can eVerifile help?
eVerifile offers comprehensive pre-employment screening solutions that incorporate criminal background checks, drug testing, badging and training. The individuals employed at the workforce are vital to the success and integrity of the company. It is important for all companies, regardless of industry, to fulfill their duties by conducting pre-employment screening to eliminate workforce risk. Employers can reap benefits by performing pre-employment screening on potential candidates such as minimizing the possibility of theft, protect the brand and reduce turnover.