When it Comes to Hiring, Don’t Leave it to Luck
[Article written by Nicolette Lepresti]
DON’T TAKE THINGS AT FACE VALUE
We have all been there. We meet a person who is charming, has charisma, says all the right things, and has a natural knack for disarming us and making us trust them. Feeling that we got a good vibe from them, we open the door and let them walk into our lives, enthusiastic about the positive impact this person will have on us. Then something unexpected happens. The mask falls off once we let them in, they show us who they really were all along, and we are left blindsided, wondering how we did not see the signs. But, the truth is, it happens to the best of us, with romantic interests, friends, and acquaintances.
Fortunately, when it happens with these folks, the most we incur is some heartbreak, mistrust, and wisdom from the hard lessons learned in trusting a person at face value without truly getting to know them on a deeper level first. Unfortunately, when this happens in a business, the fallout is much greater than hurt feelings. The losses can be huge when a company misjudges a new hire.
All employers may be familiar with the feeling following a great interview. Let’s say there is an employer who reviewed an alluring resume from someone, who on paper, had the vast amount of experience, education, and credentials they were looking for. This prospective hire may have also impressed the employer in an interview, landing the job with a captivating personality and seamless responses to every question. However, as time went on, the employer realized that the appealing surface that led to the hire was just that – a surface. Sometimes the surface can be deceiving and the only way to discover what lies deeper is to dig deep into the depths and stop taking things, and people, at face value. Sadly, for the employer in this example, it may have cost them more than they ever expected by the time they realize the mistake they’ve made.
DON’T FORGET WHAT IS AT STAKE
It goes without saying that the hiring process can get expensive and losing an employee can cost even more. In fact, statistics from the United States Department of Labor show that hiring the wrong person can come with a price tag ranging from a low end of $17,000 to a high end of $240,000, as of 2021. The costs can pile up even higher in severe circumstances occur such as theft and security breaches. There are many ways that the wrong hire can harm a business’s financial standing. These ways, to name a few, including:
- Wasted expenditure on the hiring process and training
- Time theft
- Financial or merchandise theft
- A tarnished reputation for the business
- A negative impact on and potential loss of clientele
“Is it just bad luck?” one may ask. It can be, but more often than not it is not the luck of the draw, but rather a lack of appropriate measures taken during the hiring process. According to a survey that was conducted by CareerBuilder in 2017, a staggering three out of four employers reported that they were monetarily and functionally harmed by hiring the wrong employee. This statistic is especially alarming because companies rely on their employees to keep their business going strong and growing successfully and when the opposite occurs, it can be harmful to downright debilitating. Businesses cannot sustain themselves if this keeps happening.
WHAT CAN HAPPEN?
The United States Chamber of Commerce lists an array of different types of theft that employees can commit, including monetary theft, merchandise theft, common workplace supplies theft. Employers can become victims of larger-scale data theft, in which an employee can affect the company by stealing personally identifiable information, clientele, financial data, trade secrets, or the company’s private bank details. The United States Chamber of Commerce also revealed that an astounding 75% of company employees had been reported of theft in some capacity. Additionally, more than a quarter of failed businesses may have internal crime from employees to thank for it.
Time theft by employees is the cause of one-fifth of a company’s earnings being lost, according to the American Society of Employers. This is defined as the time worked by an employee in which they are being paid but not actually working. This type of theft comes in different forms, just like other types of theft, and includes:
- Being on the clock and receiving pay but not performing the job
- Co-workers of an employee creating time stamps on their behalf when the employee is not present, which trickles into millions of dollars of unnecessary expenses for the company
- Abusing break times
- Technology usage for personal reasons while on the clock
There are even life-threatening consequences of hiring the wrong employee. An example of this is within the aviation industry. The United States Government Accountability Office highlights the impact of what is known as insider threats, or aviation employees, who use their employment and access credentials for criminal purposes. These crimes encompass acts as serious as weapons smuggling, planting explosives, stealing or tampering with aircraft, and assisted hijacking.
The magnitude of an insider threat to the aviation industry is so great because employees gain not only special access, but also advantageous knowledge on security and procedures that can make them especially dangerous. Despite increased security and protocols since the events of 9/11, there are still threats in recent years, meaning no amount of security will ever be perfect and people must be diligent with who they let into their work force. In 2015, hundreds of passengers died on Flight 9268 as a result of an aircraft mechanic rigging the craft with explosives.
Of course, in every industry, security is crucial. According to National Public Radio, shootings within the workplace have increased, with work conflicts and job dissatisfaction often being the trigger for these tragic events. There is much more at risk than just money and the first line of defense starts at the point of hire. Taking precautions can save a business from financial harm, negative publicity, and potential danger.
WHY BACKGROUND SCREENINGS ARE IMPORTANT
A thorough background screening process can help to prevent and limit these disasters from happening. A good process once in place, should help ensure that the right person ends up with your company. Criminal record checks, credit history, employment verifications, reference checks and more can help you get to know who your potential employee really is.
These services are in place to uphold and support the standards set by businesses for their employees. With these, a business receives a more transparent and trusted overview of the person they are considering for the job. Without these measures, red flags would go under the radar and employers are unable to make sound decisions because they do not have all of the facts at hand. Background screenings shed light on any criminal acts committed by the individual as well as investigating the accuracy of professional resumes.
WHAT SERVICES CAN HELP?
Justifacts Credential Verification, Inc. offers packages that differ depending on how in-depth of an investigation an employer wants. One of the offerings, for example, includes both basic employment verification and an interview-style performance review from a former supervisor, which has been shown to provide a deeper look into a potential employee’s character, work ethic, and history. More importantly, it gives an employer an idea of what to expect from the individual after having received firsthand feedback from a previous employer. Another offering, professional reference checks, gives employers a sense of who the individual is and how they are perceived by others, with the option to tailor the questions to suit the business’s specific needs.
The services we offer are customizable and cover a vast number of different areas to give the best, most expansive overall report. From providing transparency on criminal history, to confirming claimed licenses and educational achievements, to performing drug testing, the goal of a background screening is to give a business the advantage of knowledge. This is knowledge that not only helps businesses to make informed, solid decisions for their company, but to prevent the unfortunate risks we have discussed above. To some businesses, it could be the difference between success and collapse. After all, it is the employees who make up the muscle of any company, and like muscles, employees can either strengthen or weaken a company. At the end of the day, it’s not about luck. It’s about being thorough… and smart.
To learn more about how Justifacts’ can help with your background screening process feel free to request information or give us a call at 800-356-6885 to speak to our sales team.
It is important to note that Justifacts is providing this information as a service to our clients. None of the information contained herein should be construed as legal advice, nor is Justifacts engaged to provide legal advice. We go to great lengths to make sure our information is accurate and useful. We recommend you consult your attorney or legal department if you want assurance that our information, and your interpretation of it, is appropriate to your particular situation.