1 in 4 Employers Don’t Conduct Pre-employment Background Checks

Photo courtesy of UnderConsideration.com

Recently, CareerBuilder conducted a survey and found that 28% of those surveyed did not conduct background checks on potential employees. According to PR Newswire, the national study was conducted online by Harris Poll on behalf of CareerBuilder and included a sample of 2,379 hiring managers and human resources professionals across industries and company sizes in the private sector.

According to the same survey, 75% of employers said they have hired the wrong person for a position. On average, this costs the employer $17,000 per “bad hire”. According to Ben Goldberg, CEO of Aurico, “If an employee isn’t well-suited for the job or has a bad attitude, the time they spend not working could significantly impact your bottom line. That’s why it’s so important to make sure qualifications are substantiated.” He goes on to state, “It’s a hard cost to quantify, but it adds up when you consider the loss of employee morale, the additional supervision that employee needs, productivity loss for the organization, revenue that’s not being generated, and client relationships that could be turning sour as a result of bad impressions.”

The survey then broke down which reports are utilized by those who do background checks on potential employees:

  • Criminal background: 82%
  • Employment verification: 62%
  • Education verification: 50%
  • Illegal drug use: 44%
  • Professional license check: 38%
  • Credit check: 29%

The survey then digs a bit deeper, and breaks down the cost and overall effect a bad hire can have.

Finally, Goldberg sums up the importance of making a good hire. “As you are hiring candidates who represent you and act as an extension of your company, accurate and thorough background checks are vital. Especially because the cost of replacing an experienced worker who doesn’t work out can cost a decent amount of that individual’s salary.”

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