The following is a reprint of an article published in the July/August 2014 issue of the Greater West Chester Chamber of Commerce magazine – Chamber Chatter.
Regardless of the product being sold or the service being provided, every time an employer hires someone, the new hire can put the business in jeopardy. While much of the exposure depends on the level of the position being filled, this person now has access to the company’s assets, clients, co-workers, and reputation.
Any hiring decision can result in short-term financial drains from lost productivity or training costs wasted on bad hires, and industry experience shows that it costs between $7,000 and $40,000 to replace an employee (not including fees paid to employment agencies and search firms).
But, if you think it isn’t necessary to conduct a background check/verification on an employee, consider what might happen to your business and personal reputation if:
- You wind up with an employee who steals from you, from your other employees, or from your customers. (30% of all business failures are caused by employee theft, and managers make up the majority of guilty employees), OR
- Your new hire comes on board with the intent to steal your best customers or, even worse, your intellectual property and trade secrets, OR
- Your trusted employee turns out to be violent and, if you didn’t do your due diligence you could be sued for negligent hiring. (Employers have lost more than 79% of negligent hiring cases).
While background screenings are a real expense, their cost pales in comparison to the potential loss from any one of the dangers listed above.
Benjamin Ventresca is Managing Partner of Brandywine Consulting and a member of the Greater West Chester Chamber of Commerce. Brandywine offers BCGSmartCheck which is a suite of HR services including Policy Development and Background Screening.
For more information about, or solutions for, Safe Hiring Practices, contact Ben Ventresca, at 610.696.1905.