Background checking of applicants has become the standard in today’s business world, with practically every company employing some form of background check as part of its hiring process. It’s simple to understand why. Because of the current status of the labor market, a more significant percentage of candidates will not be as honest as they should be since they may be desperate for employment. Background screening will help your company discover people who have raised red flags in the past and sort through the large number of applications that today’s job listings attract.
According to recent research, up to 60% of applicants have misrepresented their applications to make themselves more appealing to employers. A third-party background check organization can assist you in developing a program that is relevant to your company’s needs. Three of the most significant advantages you’ll see right away after installing a fully integrated system are:
Compliance With Regulations Has Improved
Regulatory compliance was regarded as the second most crucial company issue in the Benchmarking Survey, and 44% of participants said background screening helped them enhance regulatory compliance. A background check provider with in-house adherence knowledge and innovative built-in compliance tools can help a firm fulfill industry standards and state and federal requirements, which vary by state and job type, further complicating the situation for employers.
If a firm does not have an effective employment screening policy, it may face severe penalties, license revocation, or legal action. At every level of the job selection process, from pre-employment screening to creating an electronic Form I-9 employment eligibility certification.
A Background Screening Company May Assist You in Developing a Compliance Screening Program for Your Company
According to 67 percent of study respondents, background screening increased the quality of their recruiting. Background checks can reveal inaccurate information on resumes, with 70% of respondents admitting to having caught a mistake. Furthermore, respondents come across misrepresentations often, with 74 percent claiming that they come across fake information up to 10% of the time. According to a new study from SHRM, job seekers who had previously engaged in lousy conduct were more likely to have faked resumes.
A lie about an applicant’s work history, qualifications, credentials, criminal background, or employment legality may result in more than just wrong hiring. Nonetheless, it might jeopardize the employing firm in financial, legal, and regulatory difficulties. Background checks such as Intercheck may assist detect fraudulent or inaccurate information early on, reducing future risks, and increasing recruiting expenses.
Negligent Hiring Hazards are Reduced
Background checking helps to minimize irresponsible hiring risks, according to 29% of study respondents. Careless recruiting claims may occur, for instance, when an employee injures a colleague or a third party while on the job, and the sufferer alleges that the person had a history or propensity for hurting others, which the employer should have found if it had done its “due diligence.” If this accusation is substantiated, the employer may be held accountable for damages resulting from negligent hiring.
A careless hiring case can cost a lot of money and hurt your image. According to SHRM, the average payout of a negligent hiring lawsuit is around $1 million. However, some instances have seen payments in the tens of millions of dollars. Background checking can assist prevent costly negligent hiring lawsuits, cited as one of the top company issues by 24% of Benchmarking Report survey respondents.
There are several more advantages to establishing a well-designed program, such as intercheck inside your firm.