Current Statistics
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The Society for Human Resource Management
states 45% of all resumes contain one major fabrication.
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The Wall Street Journal said that 34%
of all application forms contain outright lies about experience,
education and the ability to perform essential functions
of the job.
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College and University registrars report
that at least 60% of the verifications they receive contain
falsified information.
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The Small Business Administration said
that employees at all levels falsify their backgrounds.
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The American Management Association
and the U.S. Chamber of Commerce said that 30% of all
small business failure is caused by employee theft.
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According to the Bureau of National
Affairs, from $15-25 billion is lost each year due to
employee theft.
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Nearly 2 million workplace violence
incidents occur annually, according to U. S. Dept. of
Justice, Bureau of Justice Statistics
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Workplace Violence Research Institute
states that lawsuits filed against employers typically
result in out-of-court settlements of $500,000 and jury
verdicts of $3,000,000.
Today, employers are increasingly turning
to pre-employment background screening to minimize legal and
financial risk to their companies. No longer can a company
take an applicant at face value. For employers, backgrounds
checks are a necessity.
Benefits to Employment Screening
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Discourages applicants with something
to hide.
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Uncovers falsified or "puffed"
credentials.
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Eliminates uncertainties in the hiring
process.
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Demonstrates due diligence.
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Encourages good applicants to be honest
and truthful.
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Saves money and time spent in recruiting,
hiring and training.
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Can help protect against negligent
hiring lawsuits.
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Reduces chance of injury to employees.
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Reduces employee theft.
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Reduces turnover.
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Reduces workplace violence.
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Reduces insurance premiums.
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Increases productivity and employee
morale.
Is Employment Screening Cost-Effective?
With the cost of hiring a new employee averaging
over three thousand dollars ($3,000), less than 3% can be
attributed to the amount of a standard background check. A
bad hire can mean an estimated loss to companies of approximately
$40,000 in severance pay, training, wasted human resources
time, possible search firm fees, loss of productivity, and
impact on employee morale. The expense of a bad hire far outweighs
the cost of a background check.
As with insurance, each employer must decide the level of
protection they seek. Usually, the average cost of a background
check is equivalent to the cost of a new employee's first
day of work.
PLEASE NOTE: The information provided herein is not intended
to be legal advice. All legal concerns and questions should
always be referred to your attorney. The information is
based on typical industry standards and commonly accepted
Human Resource practices. This information highlights important
areas regarding background screening.
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