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4 ways How can HR contribute to plugin the revenue leakage.

Home > 4 ways How can HR contribute to plugin the revenue leakage.

Why do HR conduct background checks? Is it simply to verify a job candidate’s qualifications, or are there additional benefits?

The top four benefits HR realize by conducting background screening and how it adds value to their organization.

1. Improved quality of hire

Sixty-seven percent of survey respondents said that the quality of their hires improved due to background screening. Background checks help uncover false information on resumes, where 70 percent of respondents have reported finding an inaccuracy. In addition, respondents are finding misrepresentations more than once, where 74 percent of respondents cited that they find misrepresented information up to 10 percent of the time.

In another recent study, the Society for Human Resources Management (SHRM) found that job seekers who had committed negative acts in the past were the most likely to have falsified resumes.

If an applicant misrepresents their employment history, education, certifications, criminal history or employment eligibility, not only could it result in a poor hire, it could also potentially result in financial, legal and regulatory risks for the hiring organization. A background screening program can help uncover false or misrepresented information early on and prevent future risks and elevated hiring costs.

2. Reduced negligent hiring risks

Twenty-nine percent of survey respondents said that background screening helped to mitigate negligent hiring risks.

Negligent hiring claims may arise, for example, when a worker causes harm to a co-worker or third party within the scope of their job and the victim claims that the worker had a record of or propensity for causing this type of harm that the employer should have discovered if it had conducted its “due diligence”.

Twenty-nine percent of survey respondents said that background screening helped to mitigate negligent hiring risks.

Negligent hiring claims may arise, for example, when a worker causes harm to a co-worker or third party within the scope of their job and the victim claims that the worker had a record of or propensity for causing this type of harm that the employer should have discovered if it had conducted its “due diligence”.

If this allegation is proven, then the HR may be liable for negligent hiring damages.

A negligent hiring lawsuit can result in steep costs and reputation damage. According to SHRM, the average settlement of a negligent hiring suit is close to 1 million, although some cases have resulted in settlements in the tens of millions of dollars. With 24 percent of Benchmarking Report survey respondents citing cost containment as one of their biggest business challenges, background screening can help to protect against detrimental negligent hiring claims.

3. Enhanced regulatory compliance

In the Benchmarking Report, respondents named regulatory compliance as the second most important business challenge and 44 percent of respondents found that background screening helped to improve regulatory compliance.

A background screening provider with in-house compliance expertise, as well as intelligent built-in compliance tools, can help an organization to satisfy industry standards and state and federal requirements, which can vary from state-to-state and by job position, creating added complexity for employers.

Without an effective employment screening program, an organization could face costly fines, loss of privileges or legal damages.

4. Improved workplace safety

Forty-two percent of survey respondents found value in background screening because it helped them to increase workplace safety and security. Additionally, 16 percent of employers found screening reduced employee theft, 14 percent found it reduced workplace accidents and 11 percent said it reduced workplace violence.

Employers can conduct background screening to increase hire quality and better protect property and workers against damaging workplace accidents, violence and theft.

Background Verification     Background Screening    Background Checks   Human Resources Management     Hiring Risks             Legal Damages   Revenue Leakage

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