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How Employment Screening Can Help You Reduce Turnover

It looks like employee turnover will continue to cause a bit of headache for the foreseeable future.

According to Gartner, the average organization will see a 20 percent increase in turnover from their pre-pandemic average this year. In other words, a company that lost 50 employees annually in 2019, can expect to lose around 60 in 2022 and the years that follow.

This may not seem drastic to some, but for hiring professionals who understand the time, effort, and cost associated with onboarding a single new employee, it’s fairly alarming.

SHRM estimated that the average cost per hire in 2022 will reach nearly $4.7K. If you’re making an avoidable new hire each month, that’s almost $60K per year down the drain. In addition to cost, numerous studies have outlined turnover’s impact on productivity as well as strain on other employees within the organization. Pair all that with the expenditure of resources getting a new individual up to speed on their duties and 20 percent is a little more intimidating.

Defying the Trends

While current and projected job markets are largely responsible for this turnover rise, an organization shouldn’t surrender to these trends– calm can be found amidst the winds. But success won’t come by accident. 

Here is the simple truth….

HR leaders must make intentional adjustments in order to better retain their employees.

Most of these adjustments will need to be made on the front end of the onboarding process. To be more specific, one of the most impactful things a hiring manager can do to combat turnover is dedicate more attention to background screening. Proper background screening WILL help you reduce turnover.

While it may just seem like a convenient selling point for background screening providers, there is considerable merit to the claim. Employment screening helps hiring managers and HR leaders in a number of ways.

Identify Potential Roadblocks Early On

An individual’s background does not determine the future, but it does tell a story. Depending on the industry, a hiring manager may be more concerned with certain areas of one’s background than others. Here are some things a background check can allow an employer to see:

  • Identity Information
  • Criminal History (state, county, and federal)
  • Civil Dispute History (county and federal)
  • Inclusion on terrorist Exclusion/Watchlist Databases (if any)
  • Credit History
  • Certain Debarments and Suspensions (if any)
  • Education and Degree History
  • And More

Any history of crime, drug use, fraud, license suspension, or civil contention can cause problems for an employer if not identified early on. You also don’t want a candidate getting a job within your organization due to an embellished resume– a thing that is all too common. 

A candidate with a silver tongue can quickly become an inadequate employee if not properly screened. On the other side of the coin, a new hire may turn out to be vastly overqualified for the position, ultimately leading to their dissatisfaction. Neither situation benefits turnover.

Understand Past Employment Habits

Another important part of pre-employment screening is verifying past employment and garnering insights from a candidate’s past managers.

An old boss can speak to the strengths and weaknesses of your potential hire, giving you a glimpse into how they conduct themselves in the workplace and with what diligence they carry out their duties.

It is also important to note how often a candidate jumps at another opportunity. If their employment history shows a lack of loyalty, then you may not be able to count on them staying around for too long.

Recruit the Best Talent

Lastly, dishonest and unqualified candidates are often discouraged from applying for positions that require a background check and/or drug test. When your organization’s values are demonstrated throughout your hiring process, you will often find that the candidates who are the best fit, will respond the best. Requiring each candidate to participate in your screening process can, in itself, communicate the importance of the role and dedication you have to filling it with someone you can trust.

Far from Snake Oil

At the end of the day, background screening, correctly executed, will provide you with insights into the character and background of your potential hires. Moreover, you can gain visibility into their job history which will paint a productive picture of their employment habits. Proper screening can also allow you and the candidate to reach a mutual understanding of expectations.

Background screening lends you the insights to determine whether or not the prospective hire is a good fit for your unique organization– a determination that lends itself very well to employee continuity.

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