4 Ways That Background Screenings Mitigates Turnover

Every company understands that employee turnover is a cost of doing business. However, many companies don’t fully understand how effective background screening can help mitigate these costs. An effective screening program reveals information that helps your company avoid a lot of future problems, such as absenteeism, bad performance, workplace violence, fraudulent workers compensation claims, and more.

Background screening gathers information that allows hiring managers to thoroughly assess a job candidate, helping them make informed hiring decisions. Through making the right hiring decision the first time, employers can avoid the considerable impact of turnover.

Employee Turnover Has Both Hard Costs and Indirect Costs

A study from the Center for American Progress states that the cost to replace a bad hire is approximately 20% of an employee’s salary. This cost is factored through examining how
companies experience a productivity loss when someone leaves, pay for hiring and training new workers, and have slower productivity until a new employee gets up to speed. For the average worker, this cost can range between $6,000–$15,000.

Aside from hard costs, turnover creates other negative impacts that affects the bottom line of a business. If a bad hire was influential with your staff, replacing them could be demoralizing for current employees, leading to weaker production. A sudden departure could also act as a red flag and encourage other employees to leave the company. Finally, a sudden loss of an employee creates a burden for other employees and teams that relied on that individual. These challenges are exacerbated in high impact positions, where the new hire commands a greater salary and has more influence in your company.

Background Screening Evaluates Candidates 

To reduce the impact of turnover, background screenings are a sound business practice. There are many types of background screenings that allow you to uncover specific information about a candidate:

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