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4 Background Check Risks For Employers

In this blog, we will be discussing the potential pitfalls and background check risks for employers. Talent acquisition is a process that requires a serious deal of time, effort, and resources on your part as an employer. So, the last thing you want to do is to hire someone who is not what or who they claim to be.

A report from Udemy says that approximately 26% of applicants under the age of 40 tend to add misleading or falsified information on their resume. A study conducted by Fast Company says that hiring the wrong person can cost an employer as much as $50,000 – perhaps even more if that weaker employee costs their employer a substantial client for instance.

Let’s take a look at the four popular background check risks for employers when they hire:

1 – Negative workplace dynamics

A person who does not have the skills or experience required for the position they were hired for will not be able to perform their duties effectively, which can adversely affect the performance of the whole team.

For instance, studies show that a bad hire – a person who is not suited for the position they were hired for – can take up as much as 17% of their supervisor’s time. The lack of contribution from the bad hire can also bring down your team’s productivity.

2 – Unsafe working conditions

In the absence of a background check, how do you make sure that the person you want to hire is not a drug addict or a person who has a history of committing violent crimes?

The National Crime Victimization Survey (NCVS) reports that on average, 2 million workers in the country are affected by workplace violence every year. This is one of the important reasons why you should have a comprehensive pre-employment screening process in place.

3 – Data breach or theft

This is one of the biggest concerns for companies that handle large amounts of sensitive data. Close to 50% of data breaches are attributed to what experts call an ‘insider threat’. With this being the case, hiring someone without performing a background check – especially for a position that gives them access to sensitive data – is undoubtedly one of the biggest mistakes you can make as an employer.

4 – Negligent hiring lawsuits

If the person you hire commits a crime – stealing data from your company, damaging the property of a co-worker, client, or customer, harming a co-worker, client, or customer, or harming a third party – you can be accused of negligent hiring and sued by the victim. This is one of the most unexpected background check risks for employers these days.

What it means is that you, as an employer, have a duty to exercise a reasonable amount of care while hiring people for your company. If you do not, and if the person you hired ends up harming someone – you can be held liable for the resulting damages, since the incident could have been avoided if you had not been negligent.

Data shows that only 30% of employers manage to successfully defend themselves against accusations of negligent hiring. It means that there is a 70% chance that you could lose the case, which is a risk you cannot afford to take!

The need for a thorough background check

As you can see, hiring people without checking their background can cost you dearly as an employer. So, it is absolutely essential for you to partner with a trusted background check firm that can screen potential employees and make sure that you only hire the best in the industry.

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