Recruiting the right employee for the job is one of the most critical challenges that employers face. Employers can no longer rely only on the information provided by the candidates in their application materials and interviews to make sound decisions. They have to verify that the person is whom they say they are and have the right attitude and experience needed to thrive in their roles. Criminal history checks, reference checks, employment testing, credit history checks, and more, are some of the common ways employers assess the character of potential hires. However, they have their advantages and limitations. This post will examine some of them.
Pros
- Reduces Workplace Violence
A recent impact and cost assessment estimated that workplace bullying costs Australian employers between $6 and $36 billion yearly when hidden and lost opportunities are considered. Therefore, knowing whether a candidate has been involved in criminal activity, reckless and violent behavior can help employers determine their suitability for the role.
- Protection against Negligent Hiring Liability
Employers have a responsibility to know about the kind of person they’re hiring and a police check is a great starting point for that. If not, they may face a lawsuit for negligent hiring. For instance, if a company driver gets involved in an accident and it comes to light that the person has a record of reckless driving, the employer will be held liable. Character checks can help prevent that from happening.
- Reduced Theft
Approximately 80% of workplace crimes are carried out by employees. That’s why screening checks are important to know if a person is in a financially-stressed situation (through credit history checks) or have been involved in fraud (through a criminal history check).
- Reduced Employee Turnover
High employee turnover reduces productivity as new hires take time before they get familiar with their new role. By ensuring that the candidate is a right fit through background checks, they are likely to remain in the company long term.
- Bad Hires are Expensive
A bad hire doesn’t execute his/her role properly and that affects the overall productivity of the company. It also leads to financial loss as they get paid without meeting expectations. In short, the replacement cost of a bad hire is 1 to 5 times the salary of the job in question. Character checks help reduce the likelihood of employing a bad hire.
- Meeting Regulatory, Insurance and Customer Requirements
Background checks must be conducted to meet government regulations e.g. health care worker background check requirements, especially for roles that have contact with vulnerable persons. Failure to meet these conditions can result in lawsuits and fines.
Cons
- Expensive
National police checks, reference checks, and the likes take time and money. Comprehensive background checks can cost as high as $300.
- Mistakes
No background check process is 100% accurate. A criminal history check might return a criminal record for an applicant because of a misspelled name. That’s why employers need to give applicants the chance to explain negative information that comes up to avoid a situation where they lose a great candidate on false grounds. It’s also possible that a character check fails to capture an important negative detail about an applicant and they slip through the cracks.
- Invasion of Privacy
Some people consider screening checks an invasion into their private lives. Companies run a risk of offending highly qualified candidates by undertaking them.
- Unfair Bias
Imagine a candidate that isn’t employed for a position based on a past crime that isn’t relevant to the role or happened a long time ago. For people with a criminal history, getting beyond the stigma of their past is difficult.
- Lengthened Hiring Process
In today’s competitive landscape, companies are usually in fierce competition to grab the brightest talents. Screening checks lengthens the process and an employer risks losing a great candidate to another company.
