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