Onboarding a new candidate is one of the most important decisions an organization makes. It is also one of the easiest decisions to cause high risk and costly liability.
A resume can tell you where someone has worked. An interview can tell you how someone communicates. References can provide additional insight (if not fabricated). But none of these steps necessarily provides a complete picture of the person an organization is considering putting in a position of trust, especially when servicing the public, safety sensitive populations and protecting your reputation.
That is where comprehensive background screening becomes a crucial part of a responsible vetting/onboarding strategy.
At Reliable Background Screening, we recently analyzed a general random subset of clients’ criminal search data in 2026 from over 22,500 background screening reports across thousands of different clients and industries nationwide. Of those reports, 1,750 returned a reportable criminal record hit, representing a 7.78% criminal hit rate.
In other words, approximately 1 out of every 13 candidates screened had criminal information identified through the screening process. That does not mean that 7.78% of candidates were automatically unsuitable for their role, position or placement; it simply provides next step information if the conviction is related as a safety risk to the position or role. A criminal record does not tell an organization everything it needs to know about an individual, and organizations must evaluate information appropriately, looking at it consistently and in compliance with applicable federal (FCRA), state and local laws (e.g., EEOC Guidance Factors, Ban the Box laws.)
What the number does demonstrate is something more fundamental: You cannot effectively manage onboarding risk if you do not know what is there. As founder of Reliable Background Screening, Rudy Troisi states, “If you could have known, you SHOULD have known.®”
A quality and comprehensive/best practice background screening program gives an employer or onboarding manager important information to consider. It allows the organization to verify information, identify potential concerns, provide candidates an opportunity to explain potentially adverse information, and make more informed decisions based on the requirements of the position. It is an important way to protect your organization, its employees, and the public at large. Criminal history is not something an employer can reliably determine from a resume, word of mouth or interview.
The 7.78% criminal hit rate aligns with the broader range of criminal-record findings reported within the background screening industry. Published screening data varies considerably depending on industry, search scope, geography and the background screening provider’s definition of a “hit.” That variation is precisely why organizations should be cautious about relying on a single industry-wide number. Instead, employers should look at their own background screening data and understand what it tells them about their workforce and hiring process.
The cost of not knowing can be much greater than the cost of a background check
Background screening should not be viewed as another expense associated with hiring. It should be viewed as risk management; as insurance to protect your organization that you worked so hard to build! Consider what can happen when an organization brings on someone without adequately verifying information relevant to the position:
- A new employee may have significant employment-history issues that infect the quality safe environment you built.
- A position involving financial responsibility may be filled by someone who has credit card or identity theft in their criminal records.
- A driver with multiple DUI’s or reckless driving may be placed behind the wheel without an appropriate motor-vehicle review and injure themself or others.
- A healthcare, senior-care or childcare employee may be placed in a position of significant trust while having a previous reportable, drug offense, sex offence or endangerment to a child/senior patient.
- A private club may onboard a member with an illegal arms dealer conviction.
- A franchise may bring on a new franchisee who cannot truly afford being a franchise owner and may make it difficult to be removed from the brand.
- An employee with a prior violent record may hurt another employee or customer, causing major liability and may affect the brand’s reputation nationwide!
These are just a few examples of the potential consequences, that extend well beyond the cost of the background screening report. They can include lost productivity, employee turnover, customer dissatisfaction, damage to the organization’s reputation, regulatory problems and high cost litigation.
Protecting your brand is part of protecting your organization
Every candidate onboarded will represent your organization. Customers, members, employees, patients, clients, students, tenants and the public generally experience the organization through its people. That means a single hiring decision can potentially affect a brand that took years to build.
For organizations in highly trusted industries, including but not limited to healthcare, senior care, education, working with children, financial services, hospitality, private clubs, home services and franchises, the stakes can be costly!
Negligent hiring: what you don’t know can matter
A comprehensive background screening program cannot eliminate every risk, however it provides an important layer of due diligence and demonstrates that the organization took reasonable steps to make an informed hiring decision. One of the reasons organizations conduct background checks is concern about potential negligent-hiring and retention liability.
The underlying principle is important: Organizations should take reasonable steps to understand the people they are placing into positions of responsibility. A thoughtful background screening program therefore becomes part of a broader risk-management strategy; one that combines appropriate background screening with position-related hiring standards, consistent policies, proper documentation and compliant decision-making.
Screening can also contribute to better retention
There is another side of the hiring equation that deserves more attention: retention.
The goal is to hire and onboard the right person for the position and not simply to fill an open position with just anyone off the street. When an organization makes a poor onboarding decision, the consequences often continue long after the candidate’s first day. The organization may have to recruit again, retrain another candidate, absorb lost productivity and potentially deal with disruption among the existing team. Industry research supports the connection between background screening and the quality and longevity of onboarding decisions.
Studies have shown, employers using pre-employment screening see 39% lower turnover (Aberdeen Strategy & Research, July 2015) while “bad hires” can cost 30% of an employee’s annual salary equaling around $15,000 – $17,000 (CareerBuilder, 2016/ Solvo, 2024)
Screening can contribute to the front end of the process: making better-informed onboarding decisions and reducing the likelihood of avoidable mismatches. Better onboarding decisions are foundational to better retention and less risk!
The real value of screening happens before the problem occurs
It is easy to measure the cost of a background check. It is much harder to measure the cost of the problem that never happened. That is ultimately the value of background screening.
The strongest background screening programs are designed around the idea that prevention is better than reaction. Rather than waiting until an incident occurs, an organization can establish a consistent screening policy before the onboarding decision is made. Rather than trying to repair reputational damage after an incident, it can take reasonable steps to reduce preventable risk beforehand. Further, simply having a thorough background screening program in place often dissuades dangerous applicants from even applying to join your company.
The benefits of background screening are evident. The important choice is selecting the correct reliable background screening company to give your organization the accurate, relevant and timely information it needs, so that you can make better-informed applicant approval decisions.
Posted by: Dr. Alan Lasky | SVP Business Development & Partnerships.
This content is for informational purposes only and not legal advice or binding case law. Consult qualified legal counsel for assistance.
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