Running a business can put things into perspective in terms of cost—especially when it comes to hiring. We at CNet technologies pose this hypothesis: big or small, a bad employee costs your company. Ultimately, it's far more than what you spend on screening and running a background check on any applicant. If that doesn't ring true to you, you may be overlooking the expenditures involved in firing what seemed to be a promising employee. To back up this idea, we present to you the following areas where bad hires hit your business hardest and how investing in pre-screening can support early prevention.
More Than Employee Morale
Nothing is harder to treat than a bad attitude. You can teach skills, and you can stop bad habits, but it’s nearly impossible to turn around a lazy and pessimistic worker. Moreover, the infection spreads: now your other team members are feeling pulled down not just by the attitude, but by the work that isn’t being accomplished. You may even lose competent employees because of the stress brought on by one bad apple! So, let’s put together a list of what this really costs you:
- Unbalanced workloads
- Lowered productivity
- Hostile working environment
- Loss of quality employees.
An Avalanche of Increasing Costs
The first “cost” we covered was the big picture: a bad employee leads to lousy morale, which leads to turnover—and the expense of the hiring process. That's the cascading effect the lack of employment verification and background checks can cause; not to mention the horrors should you have hired a nightmare employee unknowingly. Now let’s discuss the actual money that you’re putting into these people only for them to lower your productivity and lose good workers. Think of your hiring process in terms of a calculator where you add up the money you spend and time you devote. Those things can be:
- Cost of advertising and recruitment
- Hours spent on recruiting and evaluation
- Hours spent interviewing candidates
- Cost of background checks and third-party screening
- Any new hire’s salary
- Days trained at salary
- Hours spent by trainer
- Resources for onboarding (space and supplies)
Now take a moment to add things up and look at that number. Most likely, just the onboarding—before the employee evens steps up to the plate—has cost you at the very least in the low thousands of dollars per person. The U.S. Department of Labor uses a more straightforward estimate that a bad hire costs a company one-third of their salary. For an entry-level employee making $30,000, that’s $10,000! Imagine the cost of hiring middle or upper-level management. The one-third estimate provided by the Department of Labor is based on onboarding, training, invested management hours, the loss of productivity, and the potential for legal disputes if you fire this person.
Employment Verification Is an Investment in Your Business
Now, we get to the good news: one major facet of CNet Technologies’ pre-employment screening is employment verification. We check all the crucial elements:
- Dates of employment
- Positions held
- Eligibility for hire
- Reason for leaving
- Performance history
Now, not all previous employers are going to be positive about your candidate, but from them, you can start to see patterns of behavior from this information. We can also delve further with the verification and start to dig into their perceived work ethic, dependability, and integrity.
The profile you receive from the employment verification should then be paired with interviews tailored to check out the applicant’s views on how they work with others, alone, and their opinions on what’s important to your company. Put together real-life scenarios from the job they’re applying for and have them describe working on the problem as well as have them perform a task they’ll be asked to do daily. Not only will this show you how they work, but it’ll give the applicant a better sense of what’s expected and if they want to continue.
The Returns: Peace of Mind—and Quality Employees!
By investing in in-depth employment verification analysis and utilizing real-world situations in your interviews, you’ll avoid hiring a bad apple employee whose behavior and attitude spoil the bunch.
Background Checks and Third-Party Screening Are Your Shields
If you go back to the list you made earlier, the figure you spent on a background check doesn't seem as hefty now. Compared to a third of salary, or the cost of training and onboarding materials, the cost of a little protection up-front begins to pale in comparison. Cutting costs (and corners) should never start with a background check, as they are critical to gaining qualified and engaged employees. With CNet Technologies, you're not only guaranteed thorough employment verification but credit and background checks as well.
The Returns: Safety, Security, and Savings!
Investing in thorough background checks and pre-screening with an objective third-party like CNet Technologies means long-term savings. Additionally, you're ensuring the money you spend on training and developing these hires is expended on legal, ethical, secure, and efficient screening services!
The cost of pre-screening your employees and running thorough background checks can sometimes seem like a little needed expense when you feel you have the perfect candidate. Compared to the money you’ll put toward a potentially unqualified hire, it’s a drop in the bucket. Find out how you can start eliminating those bad apples that can unravel your business and start hiring those who’ll help you flourish. CNet Technologies is here to help your business where you need it most!