The Cost of Not Running a Background Check

The Cost of Not Running a Background Check

Talent acquisition and management are some of the hardest things to keep track of when running a company. From your employees not being whom they say they are, to them not being as qualified as they claim. This can all be avoided through running a background check and even though running a background check may seem like an unnecessary cost, your company is risking a lot more than you may realize by failing to do so. The company’s reputation, safety, productivity, and much more are in jeopardy when you don’t know who is in your office.

False Credentials

Employee and Employer relationships should be built on trust, that’s the only way to build successful work relationships. You need to trust your employees to represent your brand as you would. But if you don’t know who it is you’re bringing in, trust isn’t going to come easy. Due to the increasingly competitive nature of today’s job market, people are willing to falsify credentials more and more often in order to stand out. While some inaccuracies are of no importance at all, others can make or break a job offer. Therefore, using an employee verification platform is a foolproof way of making sure that your employees are trustworthy and can represent your brand competently.

Quantitative Lose

No two companies are exactly the same and no two companies are run exactly the same way. When your company brings in a new employee, you are investing time and effort into teaching this person how you run your operations. Perhaps you’re even investing in coaching, training, or on software, or tools, all that effort and money will be null and void if your employee leaves abruptly or has to be fired because of their dishonesty. Not only do you lose all that money on a bad hire but you have to reinvest it all once again on hiring somebody new and without a background check, you stand to lose all those resources again. According to CareerBuilder, the average cost of a bad hire in 2017 was around $15,000.

Unsafe Working Conditions

Creating a safe working environment is so crucial to the productivity and work quality of employees. Workplace violence, both physical and emotional can not only take a huge toll on the employees but can lead to repercussions for the company as a whole. Background screening and employee verification will point out any red flags like criminal records or drug usage records that will greatly reduce the risk of workplace violence.

Reputation Damage

After hiring an employee, the company is liable for anything work-related that the employee does, whether they’re aware of it or not. It may not seem as though it’s of any importance, but word of mouth is still the most trustworthy and effective form of marketing. For example, prior to 2018, Uber didn’t run thorough background checks on their drivers and then over 100 drivers were accused of assault or abuse of passengers.

As a result, people began to question Uber’s reliability because of its reputation. Other rideshare companies like Lyft and Via began taking advantage of this mistrust and started building the trust that Uber lacked.

Fraud and Crime Risk

A study carried out by the Association of Certified Fraud Examiners estimated that globally, nearly $3.7 trillion is lost in occupational fraud. That is in money and inventory alone, when a company is not careful about their hiring process, cybercrime, hacking and so many other forms of theft and misconduct are possible. By utilizing an employee verification platform, you can completely rule out the possibility of such issues occurring in your workplace.

With a platform like Idenfo Direct that means to provide an end-to-end solution for businesses who are looking to solve the problems related to hiring, and to ensure that they are hiring safely. Idenfo Direct carries out thorough verification processes such as name screening, digital ID verification, degree verification, and other KYC related checks. With a platform like this in place, your organisation can save on the cost of not carrying out background checks – and it’s easier and simpler than it has ever been before.

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