If you have been reading my blogs for any length of time, by now you probably realize how important it is to conduct thorough background checks when hiring employees, working with volunteers, accepting members into a club, or when entering into a longterm business relationship. But what about the cost? Is there an ROI?
I am here to tell you that the cost of conducting a quality background check is low compared to the value it provides, and in some cases, may not cost you anything at all! Bold statement, I know… let me explain.
We all know the chance we take when hiring a new employee. Even when we hold interviews, check references, and test employment candidates, things don’t always go well and we part ways – It happens to everyone, and we accept this as a “part of doing business”. But did you know that the cost of a professionally-conducted background check is typically less than one day salary or wages? It’s true: most background checks cost less than you would pay for that employee for one day’s work!
When you think of background checks in terms of less than one day’s salary, the ROI is clear.
We pay employees tens of thousands of dollars per year (and sometimes more); and even if we just pay them thousands of dollars during the customary ‘probationary 90 days’, the cost of a background check dwarfs in comparison. When hiring, background checks give you many benefits which I have written about in the past – Here are some of the main ones related to costs:
You will gain insights about an employment candidate you might have never gained otherwise
You will reduce the risk to your reputation, brand, employees, and customers
You will eliminate the cost of hiring and training a person you never should have hired
A thorough background check gives you great protection from possible legal consequences and costs related, among other things, to negligent hiring and retention liability lawsuits
If you accept applications for memberships, apartment or house rentals, or new franchisees for your franchise company, the cost of conducting proper background checks to you, can be zero! It is very common for the costs of background checks to be paid by the applicants. In other words, by adding the average nominal fee of conducting a background check, relative to the fee you charge for your service, you can pass the cost through.
Clearly, background checks can literally pay for themselves, and very quickly. Make sure you hire a qualified and reliable background screening company that is also a CRA (Consumer Reporting Agency) to run background checks on employees, volunteers, contractors, and anyone who applies to become a member, resident, tenant, or a franchisee owner.
Rudy Troisi, President Reliable Background Screening
Rudy In Washington, D.C.
Rudy Troisi, President & CEO of Reliable Background Screening, was in Washington DC recently lobbying to support best practices for the background screening industry, on behalf of The National Association of Professional Background Screeners (NAPBS).
NAPBS exists to advance excellence in the background screening profession.
They SHOULD Have Known!
One postal carrier allegedly hoarded approximately 48,000 pieces of mail in her home, that should have been delivered to customers. In another case, an employee was in possession of 166 stolen mobile phones, and was caught exchanging the phones online.
Employee dishonesty, theft, or cash embezzlement are not limited to private companies only. Last year, the Federal Government performed a sweep across Southern California, after discovering crimes and theft committed against The United States Postal Service and their customers, and arrested nearly three dozen people. Charges included mail and package theft, with stolen items ranging from cell phones, prescription drugs and video games.
Once again, we see that thorough background checks should be conducted on all employees prior to hiring in order to minimize the probability of hiring people who have previously exhibited undesired behavior. Conversely, hiring employees with tainted pasts increases the probability of them repeating their improper conduct. This may lead to damaging the employer’s reputation and harming them financially.
Reliable Background Screening is widely viewed as the experts in the intricacies of the Fair Credit Reporting Act (FCRA) and other background screening regulations. We take the time to explain these to our clients, in a simplified and practical manner, without charging extra for our expert advice. In a heavily-regulated area such as background screening, you want to partner with those who operate with the highest regard to the laws and regulations.
They SHOULD Have Known! is a monthly column written by Brett Troisi, Vice President, of Reliable Background Screening. Like everyone else at Reliable, Brett’s mission is to inform and educate the public of the importance of thorough background screening to protect your company and your brand.
To request information or to ask questions regarding background screening call (833) 946-1989 or click above.
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