WORKPLACE VIOLENCE
The U.S Department of Justice reports that 1 in every 32 adults has a criminal
record. 8.5% of of applicants who have authorized background checks have
convictions. There are 6 million threats of violence and 2 million workplace
assaults each year. 13 people die due to workplace violence every week.
EMPLOYEE THEFT
33% of employees admit to stealing a product or money
from jobs in the last three years. The U.S. Chamber of Commerce estimates
dishonesty by employees costs 1%-2% of gross sales. It is estimated that 30% of
business failures are directly related to employee theft.
FALSIFIED EMPLOYMENT APPLICATIONS & RESUMES
Applicants tend to stretch the truth. Statistics reveal
that near 36% of applications are falsified!
EMPLOYEE TURNOVER
The cost of hiring, training, and then terminating one
employee can be very expensive. According to William M. Mercer, Inc., turnover
costs a minimum of $10,000; 20% of respondents indicated turnover costs exceed $20,000.
NEGLIGENT HIRING LIABILITY
In 1999, Trusted Health was ordered to pay $26.5 million dollars to the family of a murdered patient.
Courts throughout the U.S. declared, "prior to the time the employee is actually
hired, the employer ... should have known of the employee's unfitness", and
is liable if they did not perform an adequate background investigation.
Negligent hiring litigation is a growing problem! Employers lose 79% of all negligent hiring suits and the
average jury plaintiff award in employment law cases continues to be in excess
of $1.6 million! (Public Personnel Management - USA Today - Nov. 21, 2003)
Damages are awarded against employers because of the employer's
negligence and failure to perform a reasonable search into the employee's
background prior to hiring. Courts have ruled that "an employer has a general
duty to check criminal records for employees who will have interface with the
public, or who could have a foreseeable opportunity to commit a violent crime
against someone in the course of their employment."
Today's litigious society has created an environment that requires management to be armed with numerous
tools. Many employers currently spend little time verifying the accuracy of
employment applications; and, although they would like to adequately screen
applicants, the cost to do so has, in the past, been financially prohibitive.
Now, companies can not afford to not perform background checks.
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