Pre-Employment Screening Statistics

Deciding on who to hire for your company or organization is a tough job. Hiring employees affects the company’s growth and business success. Because of too many applicants making false claims of their background, recent rise of workplace violence and rising number of employees going AWOL, a Pre-employment background check has become an important tool in screening applicants. Collected from different agencies and companies over the years, the following statistics showcases applicant's serious background discrepancies after undergoing background checking:
39% of all Background Checks had at least one serious flag.
10% of County Criminal Record Checks had serious flags.
10% of Education Verifications had serious flags.
23% of Employment Verifications had serious flags.
44% of Driving Records had serious flags.

Only within the years 2001-2003 that most companies realized the background checking is really a necessity. A survey was conducted in 2003 that 82% of companies started checking as compared to 66% in 1996. Now, every company in every country does comprehensive employment background screening. They know that the implication of inadequate applicant checking can be severe especially within the network of Financial, Banking  and security services where employees would handle sensitive data of their clients. 

Why do background checking? It is not only beneficial for the company’s success but it is also for a safe workplace and attaining camaraderie of employees. 2016 statistics below show the benefits (in percentage) of conducting thorough applicant background checking:

Improved Hiring quality and increases the number good applicants applying 55%
Customers and clients would tend to notice that there is an improvement in the quality of service and manpower once they are told that background screening is being conducted by the hiring committee. Thus, earning more trust from your client and an increase in the quality of new hires because of the improved selection process. Not only that, it will encourage more “good” applicants to apply because of a safe workplace environment and competitive colleagues.

Improved Safety and Security 40%
Did you know that from a survey conducted by the US Department of Justice, there is 1.75 million days of work lost each year by victims of unsafe workplace? Not to mention a downfall on productivity and high expenses on legal matters paid by the company as Employers have the legal and moral obligation to provide a safe environment for their employees. Because of background checking, the numbers went down. Through screening, the employer would be able to know if the applicant has previous drug related activity, issue on Anger Management, Theft and other dangerous acts. 

Reduced Negligent Hiring Liability Risk 29%
Employers are not only responsible for their employee’s safety, payroll and training, they should also ensure that all their employees are qualified, with a sound of mind and fit to work. Otherwise, an employer can be held liable to a third party for negligent hiring. Basically, employers are responsible for what they do know about their employees. Becaue of Background checking, employers would be able to determine if the applicant is suitable for the job and will go along with the team.

Reduces Negative Publicity 18%
By checking the history and performance of the applicant, it will save the company from facing severe public damage because of errant employees.

Reduces Employee dishonesty and theft 10%
About 30% of employees would admit they steal from employers. And from that 30%, 41.2% are Managers, 39% are non-ranking employees and a shocking 19.3% are executives. With te background screening, the hiring committee would know if the applicant has criminal records, issue on dishonesty and falsification thus, will not move forward with their application.

Reduces Turnover 8%
Bad hires are indeed expensive. As you accept them in the company, give them a good contract, plausible training and offer a good compensation, you can expect that bad hires can just leave the team in a snap. A survey conducted by Right Management Consultants says that the replacement cost of a bad hire is 1 to 5 times the salary of the job in question. Knowing the applicant’s work experience and the reason leaving the previous company through background screening would guide the hiring people  if the applicant is worth it of the position. 

To Sum it up in one word: SUCCESS. 
Companies who does Comprehensive background checking are organizations that good applicants seek and apply to because they are better managed, safe and they would expect that they will work alongside good employees who can help them grow professionally. And as for the employers, this process would certainly help them collect quality employees that are responsible, with clean records, disciplined and who will surely stay with their team until they reach success. 

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