The underlying motivation for conducting pre employment screening is to prevent a bad hire so it’s difficult to assess the ROI of incidents that do not occur. I believe there are two ways to determine the ROI of pre employment screening.
First, employers need to establish the value of avoiding workplace violence, legal action or any other type of incident that could adversely impact productivity. For example, background check experts argue that up to ten percent of all candidates have a criminal record. Let’s assume background checks cost $50 USD per candidate and an employer outsources 10 background checks per month to a background check company.
The monthly cost of outsourcing background checks is $500 USD or $6000 USD per year. Considering the impact a single bad hire can have each business must determine if the cost of employee background checks is worth avoiding the cost of hiring 10 problem employees. Seems like a small price to pay to avoid costly litigation, workplace violence, employee theft or any other incident that could significantly cost more than $6000 USD per incident.
Second, employers must weigh the benefits of reducing turnover versus the cost of employee background checks. Businesses can calculate the cost of each turnover by breaking down the line item costs associated with filling a vacant position. A few associated costs to consider are; interviews, training and development or employee benefits. The list goes on but rest assured once all of the expenses are itemized it’s easy to see how turnover costs start to mount.
For more information on background check experts, background checks, criminal background checks, employee background checks or pre employment screening contact us at the background check company or call 1.770.426.0547
