Sara says, hey Mike, I just interviewed this guy and I really like him. I want to hire him for that open position, is there anything else we need to do, like a background check or something? Mike replies, nah, the last 10 people I hired, we haven’t had any problems; just tell him he can start next Monday.
Four months later the new employee was turned in by another employee for stealing merchandise valued at about $6,000. An investigation revealed that this employee had a prior felony for shoplifting and a few other misdemeanors.
Although this story is fictional; these incidences happen often. Small companies are notorious for neglecting this part of the interview, and yet they are most at risk and suffer the greatest loss as compared to the big companies.
Could this have been avoided? Perhaps. You see Mike thought that since he was lucky in the hiring of his last 10 employees, he figured his winning streak would continue. Unfortunately that’s not how things work in the real world. Hiring, like gambling is a crap-shoot. A roll of the dice and a hope for a win every time!
If you don’t believe me; just watch the evening news. How many times do we see interviewed neighbors saying, “They were always a quiet family, we had no idea that could happen in our neighborhood”.
Studies estimate that 1/3 of business failures are due to employee theft.
In the fictional story above, could this have been avoided? Let’s take a brief look at how a proper background screening for less than $75.00 could have made a difference in the thousands lost.
1. A background check would have revealed the prior convictions.
2. Informing the employee that the company does background checks on all new-hires would have possibly deterred the employee from applying for the position.
3. Mike and Sara would have been aware of prior convictions and could have confronted the employee.
4. Conducting an Employee Credit Check might have revealed over-extended debt issues and overdue payments.
We live in a world of hind-sight and should-haves. Reacting to the situation, Mike now realizes that there were precautionary measures that could have saved him in losses – not to mention his shattered confidence in hiring.
Insurance is purchased to alleviate the risk of a large financial loss from unexpected situations and give us peace of mind that frees us from worry. A background check is your insurance and confidence that you’re making the right hiring decision for the most qualified and best candidate.