ROI From Pre-Employment Background Checks

Business managers are often faced with the situation of having to ascertain ROI on expenses projected. Lets look at the considerations involved in arriving at an ROI on pre employment background checks.

To start with, one certainly needs to estimate the value towards avoiding:

• Work place violence
• Legal action and law suits
• Loss of customer(s)
• Brand image
• Revenue
• Theft of data, other assets

A single bad hire can potentially cause any of the above 6 damages, if not more to the employer. With certain statistics and probabilities applied, one can actually assess the value of the potential damage a bad hire can cause.

A quick look at the annual expense involved in doing background checks in a year, it can very well be ascertained that it is a tiny fraction of the damage that one is potentially avoiding. Factoring in overall productivity gains from having an employee base of right credentials, it becomes quite a logical decision make background checks part of the pre-employment process in an organization.

Some decisions are simple, yet powerful isn't it?