Why screen?

30% of business failures are due to poor hiring practices ’behind the façade of rogues and scoundrels are corporations and industry practices’ (G.L. Clark, 1997)

A company’s system of internal control has a key role in the management of risks that are significant to the fulfilment of its business objectives. A sound system of internal control contributes to safeguarding the shareholder’s investment and the company’s assets (Turnbull Report, 1999)

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Why verify the background of your candidates?

A recent survey of 1500 UK employers found that 71% had encountered lies on CVs and 49% said it was a serious problem when recruiting staff
- The Guardian March 15 2004

The threat of litigation, news of corporate collapses and financial scandals and the influence of the Sarbanes-Oxley Act have all combined to force organisations to rethink their approach to managing the risks inherent in the recruitment process.  In the financial services industry, FSA guidance recommends that firms have a comprehensive pre-employment screening policy in place.

Selecting the right employees is one of the most complex and time-consuming tasks for HR departments as well as the biggest source of people risk ...more

Every business organisation, large or small, needs to have a  pre-employment screening policy and rigorous employment checks in place.

The cost of replacing a middle management employee

• Severance pay
• Searching for replacement
  (interviewing, agency fees, etc)
• Cost of training the new employee
• Lost production/decrease in efficiency
• Transfer of confidential information to subsequent employers

Consider how much time and money is spent on the following prior to termination:

• Progressive discipline
• Theft and/or fraudulent industrial action claims
• A decrease in the quality of the employee’s work
• Repairing customer ill will that is generated by problem employees

Thorough pre-employment screening and detailed employment checks minimises the risk of recruiting employees whose integrity is in doubt and since the candidate’s consent is required before the screening process starts, unsuitable applicants can be deterred at an early stage. Employment checks and background checks can assist with detecting concealed adverse history in a candidate’s background, exposes false claims by job applicants and identifies individuals who are more susceptible to dishonest or corrupt behaviour.

Employment checks

• ensure the integrity of the candidate
• protect the reputation of the hiring firm
• guarantee compliance with corporate governance guidelines
• ensure compliance with industry regulations
• protect from negligent hiring lawsuits
• save your firm money