By Tammy Cohen, PHR, SHRM-CP
As 2017 comes to an end, and companies strategize for the upcoming year, managers start distributing budget reports to analyze what worked and what didn’t. It might be tempting to skimp on your background screening program, but—in addition to protecting both your company and your clients—a comprehensive screening program saves your company money in the long run.
Industries with high turnover rates spend an exorbitant amount of money on the hiring and onboarding processes. Effective software deployment can streamline onboarding whilst simultaneously cutting some of these unnecessary costs. Businesses who look for more permanent hires lay out an even larger investment. To deploy best practices in your hiring and onboarding program, maintain a thorough background screening and drug testing program.
Stats prove that hiring is an investment:
• Drug abuse causes roughly $400 billion loss each year
• 7 out of 10 employers report instances of drug use with symptoms ranging from absenteeism to overdose
• Healthcare costs for prescription drug abusers are 3x more expensive
• The cost of untreated substance abuse can reach $13,000 per employee
• Workplace fraud carries a median impact of $145,000 per case
• The AFCE 2014 report found that an average 5% of total annual revenue is lost to fraud
• Fraud cases found within the first 6 months still saw a median loss of $50,000
Mitigate risk with background screening
Background screening is a small price to pay compared to the expense of alcohol and drug abuse in the workplace and the potentially catastrophic costs of fraud. Companies make an investment every time they onboard a new hire; background checks and drug screening ensure those investments are worthwhile in the end. Keep this in mind when planning your budget, and lay the foundation of a vetted, stable workforce to achieve your goals in 2018. To partner with an experienced provider, contact InfoMart.