Many of you might be saying to yourself – it will never happen to me. My employee would never steal. My client would never prosecute me for negligent hiring. Yet situations like this happen to employers every day.
A few months ago, I was talking with a friend of mine who owns a small business and he told me it wasn’t worth the money to do background checks. Recently, he contacted me in a panic, requesting a criminal background check on one of his employees. It turns out this individual was accused of stealing on the job. Upon receiving the results of the background check, there was a history of criminal activity, including stealing. Because of these accusations, my friend in turn lost out on a major contract worth hundreds of thousands of dollars. A background check would have cost him $100.
When hiring in today’s market, employers have a variety of tools to assist them in choosing the best candidate. The U.S. Department of Labor estimates that the average cost of a bad hiring decision can equal 30% of the first year’s potential earnings.
Whether you are vetting a new employee, completing a business deal, leasing real estate, or entering into some other type of legal contract, conducting a comprehensive and professional background check is always a good business practice. By utilizing background checks, you help reduce both legal and financial risks to you and your organization.
Look at the big picture! Reduce your liability by considering background checks to ensure safety and peace of mind. Just like the James Bond film, Never Say Never Again!