Employee Background Checking
Clarifacts.com is our trusted Background Check partner
Most Job Candidates have left a history of their behavior that is discoverable.
Whether it is a multi-million dollar negligent hiring lawsuit or an employee that drains the company coffers, employers must take the steps necessary to protect themselves. You probably also know what a challenge it is to overcome the results of hiring the wrong person from the outset.
Negligent Hiring Lawsuits
- Negligent hiring lawsuits hold the employer liable for any unlawful or improper actions of their employees if it can be shown that the employer failed to make “reasonable” inquiries into the employee’s background and suitability for the position.
- A majority of negligent hiring lawsuits maintain that the employer failed to conduct appropriate research, such as a criminal record history, employment verification and other background information that would have disclosed the employee’s past misconduct.
- Employers found negligent in the hiring process have been subject to substantial monetary penalties, which are now reaching millions of dollars. How many small businesses could survive after this type of financial loss?
Employee Theft
According to the American Management Association and the U.S. Chamber of Commerce, 30% of all business failures are due to employee theft and other forms of dishonesty. Fraudulent billing and embezzlement top the list of threats.
High Employee Turnover Rate
- The U.S. Department of Labor estimates that, on average, it costs you anywhere from 33% to a whopping 150% of a new hire’s annual salary to replace that employee. While it is hard to put an exact figure on turnover, companies face a huge financial hit from direct costs such as recruitment advertising, time spent reviewing resumes, interviewing applicants, and orientation and training time if the wrong person is hired.
- Studies that say as many as 80% of all applicants put some kind of false information on their application or resume.
So What Do you Do?
The Answer in this case is simple—have a professional do your background and reference checks! You cannot afford to get this wrong, and it can be difficult to do. This is one area where outsourcing is simply the best option. It is also the most economical option. Background and reference checks can be completed for as little as $79.00 after the (one time) set up fee of $125 for CEDR Members.
Signing up is easy and inexpensive.
While the level of a background check you need may vary between your receptionist and a new department head, they should include, at minimum a professional social security trace, criminal record search and verification of employment and education.
CEDR recommends that all members sign up for and use Clarifact’s background check services through the CEDR Solution Center. They are our sole partner providing this service and they provide services in all 50 states.
To learn more and to enroll your business:
Fill out the form to have them contact you.
