Everyone knows that a bad hire can be a costly mistake, but just how expensive are we talking? The U.S. Department of Labor estimated that businesses lose an average of 30% of the employee's first year's earnings on a bad hire. All the more reason to consider what red flags you should pay attention to on a background check.
Gaps and Short-Term Employment
If you notice your potential new hire has had multiple periods of unemployment, this may be a pattern. Maybe the person had some health issues or was caring for a family member in need. This could also be evidence of unreliability. If the applicant has had multiple short-term jobs, pay attention. Leaving jobs early and frequently could indicate that the person is challenging to work with or gets bored easily. These are probably not character traits that you want to add to your team.
Are you finding details in their background check that don't match up with their resume? Data shows that lying on a resume has become quite common, but that doesn't mean you shouldn't pause at the realization of what has happened. If they're willing to fabricate information about themselves this early in the game, it's cause for concern.
Resume Left Out Relevant Experience
With applicants making an effort to fit their work history onto one page, it's normal not to include everything. If the candidate chooses not to include multiple relevant previous jobs or educational endeavors, there may be a reason. This is definitely an opportunity for discussion.
The presence of a criminal record alone doesn't exclude a candidate from being considered for a job. However, if the arrest is related to the job they are applying for, then one should take notice. If, for example, an applicant is being considered for a financial position and has a criminal history of theft, they’re probably not be the right candidate. It's also important to consider if the applicant was honest about their history as this is a show of good character.
A background check will provide employers information about a person's loan amounts, credit lines, and previous bankruptcies. Again, someone who struggles with debts and loans may not be the best candidate for a financial job. A history of financial irresponsibility can also give employers a hint about the candidate's overall trustworthiness.
About Negligent Hiring Claims
If a customer or coworker is harmed by an employee, the hiring decision is subject to investigation. If the filer can prove that the employer could or should have expected such behavior from the employee, then the employer may be considered liable. Protecting your customers and employees involves adequately screening new hires.
When adding a new employee, it's essential that you can ensure the candidate has been honest on their resume. At East Coast Investigations, Inc., we prioritize ensuring that you are as informed as possible about the history of your candidate. Contact us today regarding pre-employment background screening.