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Why You Should Consider Conducting Employee Screening and Background Checks

HCM
Article
03/27/2015

Hiring employees involves many risks — from bringing on underqualified staff that can damage your brand's reputation to the legal risks you're assuming for an individual's behavior once they are on your payroll. An employee background check and screening program can help minimize risks by identifying inaccuracies on resumes, a history of bad behavior, or those who could put your company at risk for legal violations. Here’s a look at why businesses should consider investing in background checks and employee screening.

Resume Dishonesty Is a Growing Problem

According to one study, 58 percent of hiring managers have seen false information on a candidate's resume, and this problem is only getting worse; one third of managers noted an increase in exaggerations and misleading statements on resumes since unemployment rates rose in recent years. And lying on a resume could indicate other behavioral issues according to another study conducted by the Society for Human Resource Management (SHRM), which found a correlation between resume fraud and a history of deviant acts.

While interviewing a candidate and reviewing their resume can be helpful to discerning their background and character, it's can be beneficial to pair that approach with a comprehensive background check that verifies critical information provided — including employment history, educational background, and other experiences. Taking steps to ensure the accuracy of a candidate's resume can help you hire the most qualified candidates for any position.

Fraud, Theft, and Substance Abuse Are Costing Employers Billions

Employee theft, ranging from complex embezzlement schemes to retail employee cash and stock theft, can cost companies up to billions each year, and reports suggest that employee theft may be on the rise. Theft, along with other criminal issues such as internal fraud and substance abuse on the job, can cost employers significant time and money spent recovering stolen properties, prosecuting the crime, and repairing relationships with clients, board members, and other stakeholders. Workplace safety may even be compromised.

Effective employee screening can help employers avoid candidates who have past behavioral issues in the workplace. Screening for potential problems before a hire is made can dramatically reduce the chance of expensive liabilities.

Workplace Safety Isn’t a Luxury — It’s a Necessity

Every employee wants to feel safe coming to work, but unfortunately, not every workplace has this environment. One FBI study, published by SHRM, notes that as many as 350,000 businesses each year experience some form of workplace violence. Thorough candidate screening can help minimize the risk that new hires will disrupt the culture you’ve built — or even threaten the safety of your other employees with troublesome workplace behavior.

Ensuring Regulatory Compliance and Protecting Against Lawsuits

Ensuring regulatory compliance and protecting against the potential of lawsuits are two timely and critical concerns for businesses. Hiring requirements can vary by industry, state, and job position — making screening a challenging task for employers. Keeping detailed records throughout the hiring process, from recruiting sources to candidate background screening, to the completion of Form I-9, is essential.

Partnering with a firm with an understanding of your company's background compliance screening needs can help minimize these risks. Today's integrated HCM platforms can help support the process by simplifying recordkeeping and integrating seamlessly with background check providers.

 

This website contains articles posted for informational and educational value. Paychex is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, Paychex. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant.
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