Tip of the Month


Tip of the Month

Tip #2: Why Is It A Good Idea To Do Background Checks?

For each “tip of the month” this year we will focus on 12 different recommendations for creating a non-discriminatory employment background screening program.

When an employer decides to hire or promote an employee they should have a non-discriminatory legally compliant background screening program in place. Not only does this help employers ensure they are hiring the right person for the position, it also limits exposure to negligent hiring claims.

For this month we will focus on the question, “why is it a good idea to do background checks?”

It is estimated that a negligent hiring claim can cost a company up to $300,000 in damages. If it’s a class action claim, then that number can increase into the millions. No consider that job applicants tend to falsify their resumes and/or job applications: on average 30% of resumes misrepresent the truth (specifically, education and employment history).

Here are other advantages of performing employment background checks:

  • Fosters a safe and profitable workplace for employees and clients
  • Avoid hiring the wrong person
  • Cost outweighs the risk (very affordable)
  • Builds credibility with customers/clients
  • Reduced rates for workers’ compensation insurance
  • Saves employers money on training and onboarding

Employers Choice Online Tip of the Month is provided as a free service to clients, friends and subscribers of Employers Choice Online, a division of Diversified Risk Management, Inc. The intent is to provide information of value to attorneys, human resource, security, and risk management professionals. The information contained in this e-mail alert is intended to provide useful information on the topics covered, but should not be construed as legal advice or a legal opinion. Your comments are appreciated. E-mail corporate

E-mail | Print | Top ^

Learn More


Workplace Violence One out of every six crimes occurs in the workplace and homicide is the second leading cause of workplace death in the U.S.

Education Falsification National Credit Verification Service reports that 25% of the MBA degrees it verifies on resumes are false.


72% of shrinkage is due to employee theft.

34% of all job applications contain lies.

30% of small business failure is caused by employee theft.


"Thank you very much. I really appreciate the responsiveness and customer service you have provided. I look forward to working with you in the future."
Vice President
Executive Placement Agency
"Got them both. WOW! Just imagine... They have her taking people's credit card numbers over the phone. Both lied on the have you been convicted question on the application."
Human Resources Consultant

© Copyright 2013 EmployersChoiceOnline.com. All rights reserved.