For any company worth its salt, due diligence is engrained into the hiring process to ensure hiring managers get a better picture of candidates beyond what their CVs simply at face value. However, the due diligence process can involve a lot of work and take up too much time hence why some companies prefer to cut to the chase once everything seems to be in order.
Doing so, however, puts businesses at grave risks. Without background checks or using an employee trust score platform of some sort, it’s possible for hiring managers to rue their decisions way into the new hire when the damage has already been dealt. So what exactly are the dangers of skipping background checks during hires? Let’s break it down.
1. Unqualified workers can lie their way to critical business functions
If you only go by your candidates’ resumes, then there’s a good chance that you may be relying on incorrect information or, worse yet, hiring candidates with faked credentials. Degree fraud has become a lot more sophisticated in recent times. It’s especially hard to distinguish the legitimate from the forged in an age where bogus duplicates & the real deal look might as well be two peas in a pod.
As things stand, candidates can obtain fraudulent degrees from over 370 educational websites, while an estimated 200,000 bogus degrees are dished out to “customers” worldwide each year.
Beyond outright degree fraud, it’s also commonplace for candidates to tweak information on their CVs to make themselves more appealing for a role. In particular, ResumeBuilder’s new survey unearthed that:
40% of candidates lie about their abilities or skills
43% of candidates aren’t honest about the length of a position held
46% of people lie about work experience
44% of candidates aren’t honest about their educational background
To pick apart the lie from the truth, you’ll need an employee trust score checker that can help your business instantly verify the authenticity of certificates. What’s more, you want a platform that can double-check previous work experience, and other important details, just to ensure everything adds up.
2. Your business could pay the price for negligent hiring
For the most part, ignorantia juris non excusat. In other words, ignorance of the law is no excuse. Employers remain completely liable for the harm or damage third parties (clients, other employees, etc.) incur, whether or not they were familiar with the worker’s potential to inflict harm.
Your business will therefore be held responsible for the harmful actions of your new hires, especially if the law deems that you could have discovered this potential for risk via a reasonable investigation.
Overall, the risks of negligent hiring and skimping on employee background screening services entail hiring workers who could:
Assault co-workers and customers, with statistic Brain estimating 20,000,000 cases of workplace place violence annually.
Attract costly legal claims from affected customers and co-workers. Not so fun fact: employers lose over 70% of such lawsuits
Tarnish your brand image with their unethical actions & perpetuation of crime
As a result, it becomes important to rely on professional background check services that cover police verification and criminal background checks. This way, your business can be sure it’s hiring employees with a clean track record.
3. You may have to contend with a rise in staff attrition
There’s only so far a lie can go, especially when it comes to a critical job position. Once the rubber hits the road, candidates without the right expertise will struggle to play their part thereby getting in the way of productivity.
When other workers find themselves having to constantly pick up the slack due to the shortcomings of this newly hired employee, they may jump ship when the burden inevitably becomes too much to bear. Beyond workload concerns, bad hires can also increase attrition rates through:
Creating a hostile workplace atmosphere
Poor management skills, which can increase subordinate resignation by 400%
Making other employees feel unsafe
Lowered staff morale, which takes a hit due to the new hire working below capacity
In the long run, a high staff turnover may make good candidates think twice about your business, while the lack of pre-employment background check services could also swing the door ajar & attract the wrong type of candidates, thus further escalating staff attrition.
4. Costly rehiring processes that’ll bleed you dry
Just like a cork in water, bad hires will eventually come to the fore. The business disruption they cause will force your hand sooner or later, with each decision you take to replace them proving expensive yet unavoidable.
The U.S Department of Labor estimates that businesses lose up to 30% of a new hire’s first-year earnings to bad hires, with CEOs admitting to parting on average with over $240,000 in expenses due to:
Onboarding training costs that go down the drain
The expense of training replacements
Background checks and other hiring due diligence that need to be done afresh
Beyond that, bad hires could also lose you money through lost clients. When an employee delivers solutions that aren’t up to scratch or constantly misses deadlines, you may lose your hard-earned clients as they decide to look elsewhere for better services. In fact- let this sink in for a moment- Forbes estimates that businesses lose a mind-boggling $75 billion annually due to unhelpful or ill-mannered customer service workers.
With an employee trust score checker, you can unearth work history quickly to spot red flags and sniff out bad hires from a mile away.
A reliable background check for employees is a no brainer
To get your hiring decision right the first time- and every time thereafter, it’s consequently important to take the guesswork out of the process by carrying out a background check for employment companies.
One great option is TRST Score (Trust Score), the world’s first employee trust scoring platform that gives businesses a one-stop shop encompassing more than 15 varieties of background checks. With TRST Score, you’ll achieve a 90% reduction in wrong hires and gauge trust at a glance. Therefore, you’ll save yourself the trouble of costly hiring, staff attrition, and lawsuits while false credentials will never sneak past you. Try TRST Score today.
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