Monday, October 18, 2004
Pre Employment Screening - Preventative Medicine
It occurred to me today that pre employment screening is like preventative medicine. Instead of trying to figure out how to treat the symptoms of a disease, preventative medicine thwarts the disease before it ever infects the body. Performing background checks on new employees has the same effect. Problems like turnover, workplace violence, negligent hiring lawsuits, fraud, and theft can be avoided by hiring the right people in the first place.
For instance, think of the symptoms caused by turnover along with the associated costs:
-On average, in U.S. businesses, at least half of all new hires don't work out and it costs $7,000 to replace a salaried employee, $10,000 to replace a mid-level employee, and $40,000 to replace a senior executive.
-Hiring a recruiting firm or placing a Newspaper/Online ad can be relatively expensive. Managers must spend their valuable time developing and placing ads, and fielding phone calls.
-Managers must spend time reviewing applicant resumes, interviewing candidates, and processing paperwork for new hires.
-Training materials are not cheap. However, the time investment in the training process is more significant, because experienced employees can't operate at full capacity while training new employees.
-When an employee is terminated, the gap left by that employee has several effects on a company's overall performance and productivity. When any department's staff is reduced, other employees will have to take over the duties of that missing staff member. This can lead to increased overtime pay. It could also have an adverse affect on a staff's overall morale, possibly leading to further turnover.
-In a sales-related position, employee turnover can have a dramatic effect on a store's profitability. Obviously, a missing salesperson cannot generate any sales. Furthermore, sales are often lost when customers become frustrated dealing with new employees or when new employees neglect to up-sell the company's products/services.
-Lack of service during times when staffing is low can decrease customer satisfaction. Moreover, Companies can easily lose clients due to the inexperience of a new employee.
-Unemployment claims can lead to significant increases in unemployment insurance premiums.
Criminal background checks, employment verifications, and reference checks can all be valuable tools in hiring employees that will not quit or require termination shortly after hiring.
For more information on the symptoms of a “bad hire,” visit Inquest- Why Screen.
For more about pre employment screening in general, see Inquest's Website.
For instance, think of the symptoms caused by turnover along with the associated costs:
-On average, in U.S. businesses, at least half of all new hires don't work out and it costs $7,000 to replace a salaried employee, $10,000 to replace a mid-level employee, and $40,000 to replace a senior executive.
-Hiring a recruiting firm or placing a Newspaper/Online ad can be relatively expensive. Managers must spend their valuable time developing and placing ads, and fielding phone calls.
-Managers must spend time reviewing applicant resumes, interviewing candidates, and processing paperwork for new hires.
-Training materials are not cheap. However, the time investment in the training process is more significant, because experienced employees can't operate at full capacity while training new employees.
-When an employee is terminated, the gap left by that employee has several effects on a company's overall performance and productivity. When any department's staff is reduced, other employees will have to take over the duties of that missing staff member. This can lead to increased overtime pay. It could also have an adverse affect on a staff's overall morale, possibly leading to further turnover.
-In a sales-related position, employee turnover can have a dramatic effect on a store's profitability. Obviously, a missing salesperson cannot generate any sales. Furthermore, sales are often lost when customers become frustrated dealing with new employees or when new employees neglect to up-sell the company's products/services.
-Lack of service during times when staffing is low can decrease customer satisfaction. Moreover, Companies can easily lose clients due to the inexperience of a new employee.
-Unemployment claims can lead to significant increases in unemployment insurance premiums.
Criminal background checks, employment verifications, and reference checks can all be valuable tools in hiring employees that will not quit or require termination shortly after hiring.
For more information on the symptoms of a “bad hire,” visit Inquest- Why Screen.
For more about pre employment screening in general, see Inquest's Website.
