Hiring the right people is one of the most important aspects of growing your business. Just as a solid team can spell success, the wrong employees can also bring your business down. This is why it’s important to understand what makes a prospective employee risky--and what you can do to avoid or mitigate those costs to your company.
Have you ever considered what makes a new hire risky? While the hiring process can be an exciting experience, it can also set your business up for severe consequences if you don’t weigh the risks appropriately. Northwestern University cites a study that explains, “The U.S. Department of Labor’s estimate is simple – the average cost of a bad hiring decision is at least 30 percent of the individual’s first-year expected earnings. If you take an employee with an annual income of $50,000, the cost to the organization can be $15,000. Others argue the cost is actually greater.”
If you can understand the types of risks you are likely to face, your company can make more informed decisions as you pre-screen prospective employees. These are some types of risky hires:
When it comes to hiring, you need to protect your company and your team. Alex Lennon of venture firm Black Nova Group explains, “Risk can’t be avoided, but risk can be reduced...investing time and effort into your hiring process is essential.” A thorough, consistent background screening process with qualified interpretation of results can help protect your company from negligence and discrimination lawsuits. It can also help you make informed decisions about online hires or identify prospective candidates who are less likely to turnover. These kinds of checks can not only help you avoid or diminish risks, but they can also give you confidence in your ability to position your company for sustained success. eKnowID has the technological capabilities and individualized insight to help your business decrease risk and hire for growth. Learn more about our high-tech, high-touch background screenings.