The most effective way to reduce employee turnover rates is through conducting employment background checks on all new hires. Certain industries experience higher employee turnover rates than others. The retail industry, for example, has a 30% employee turnover rate.
This chart indicates employee turnover rates by percentages based on industry:
Organizations invest a great deal of time, capital, and resources to effectively on-board their new hires. If organizations lack an effective background screening program, however, the money spent to train and on-board is wasted.
Continuity among employees is a major driver to increase profitability and improve the overall culture of a business. Being a team player is what every hiring manager desires. If there is a high employee turnover rate, employees are not able to build those strong business relationships.
A large clothing retailer was experiencing unusually long delays in receiving completed employment background screening reports from their background provider. On average, each completed report was taking up to five business days. Due to the delay in receiving background results, they could not place employees fast enough and qualified applicants were beginning to take employment offers from their competitors.
Their background screening provider was directly affecting their efficiency at filling vital positions within their organization. The clothing retailer reached out to Employers Choice Screening and explained the issues they were having with their background vendor.
Employers Choice Screening did a complete analysis on how the organization was conducting their employment background checks through their current provider. Employers Choice Screening determined that the searches being conducted were not comprehensive in nature and the turnaround time was unacceptable. After a month of conducting employment background checks through Employers Choice Screening, the clothing retailer was receiving completed background reports within 35.4 hours turnaround time on average. This drastic improvement allowed for the employer to hire rapidly, add a drug screening program for all new hires, utilize industry-specific searches for specific positions, and reduce their employee turnover rates.
Accuracy of the information being reported
In a perfect world all background check records would be the same and reported consistently from third-party vendors. As we do not live in a perfect world, third-party background screening organizations, otherwise known as consumer reporting agencies (CRAs), have reporting requirements that differ drastically. CRAs have a duty to ensure maximum possible accuracy when reporting public record information.
This means a county criminal record found by a court researcher must be reviewed by the CRA to ensure the record(s) belong to the subject of the report by matching at least two identifiers. Examples of identifiers would be full name or date of birth match.
Competitive rates for screening services
How does an organization measure an overall cost by implementing employment background checks? By conducting background checks, organizations are reducing legal liability, increasing profits, and improving employee morale as their pay out. Background checks should still provide value based on cost alone. Some CRAs may charge a hefty upfront set-up fee or monthly minimums to get set up. Other CRAs may have “pay-as-you-go” services. Whichever pricing model employers prefer, they need to have a full grasp on the pricing structure itself. Contrary to popular belief, not one background check is exactly the same.
There are certain factors that may contribute to the overall cost associated with a background check. These factors are driven by:
One out of every six crimes occurs in the workplace and homicide is the second leading cause of workplace death in the U.S.
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.