3 Biggest Risks your Company Might Suffer for Not Conducting Pre-employment Screening

pre-employment screening

3 Biggest Risks your Company Might Suffer for Not Conducting Pre-employment Screening

Recruiting candidates means that the company will trust them to do their jobs, provide excellent service to customers and partners, and as a representative of the company’s brand. Thus, choosing the right candidate is crucial. False recruiting can result in tangible and intangible losses. What are they?


1. Hiring unqualified employee

Company should not rely solely on CV or candidate resume. According to CareerBuilder data, as much as 58% resume provides false information – details of education, position, level of position, and length of work. Through pre-employment screening, companies can verify on whether the data presented on the resume match the facts and qualifications required for a position. Good hiring decision can minimize turnover rate, which can be costly.


2. Employing criminals

According to the study of the Association of Certified Fraud Examiners in 2014, global fraud in the workplace resulted in losses of up to $ 3.7 million each year. The report explains that the value of stolen money averaged to 5% of the turnover of the year.

A company may not only face the problem of nominal loss risk, but also other forms of crime risks, such as cybercriminal. Trusted employees holding access to sensitive data – financial information, inventory data, and customers – may steal and trade them to unauthorized party. The company can avoid these risks through a thorough examination of the reasons the candidate resigned from the old company and spans the time he was unemployed.


3. Losing partners and customers

Companies are required to create a safe workplace for employees. A safe working environment supports a conducive professional relationship with partners and customers. According to the Society for Human Resources study, 36% reported violent incidents in the workplace. These incidents resulted in physical and emotional negative impact on employees, customers and the company itself. Strategic pre-employment screening measures such as checking criminal records, doctor’s recommendation and urine tests are essential to reduce the risk of violent incidents in the workplace.









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