The majority of employers in each of the ten largest world economies reported that they have experienced a “bad hire”. The bad hire negatively impacted their business with a significant loss in revenue and productivity. All of this information was released in a study by CareerBuilder and it shows that hiring the wrong person can have serious implications for companies.
So how can your business avoid bad hires? The answer is background checks. A bad hire can be avoided by having all applicants for a position in your company go through a background check. There are companies that specialize in running pre-employment background screenings that will give you all the information you will need to make sure the person you are hiring is the right fit for the job.
In the United States alone, 66 percent of employers reported that they have made bad hires. Of those companies, 27 percent reported that a single bad hire cost them over $50,000. Not only will your company suffer financially from a bad hire, but they can affect employee morale, decrease productivity, and have a negative impact on client relations. All of these problems could be avoided by having background checks run on potential employees. Many times people lie on their applications, leave out information, or stretch the truth to get a job. A proper background check will show an applicant’s true colors and you can see if they were being honest on their application. If a person isn’t honest on their application, would you want them to work for your company?
Here are some of the countries with the biggest economies in the world and what percent of companies reported that they made bad hires last year:
Russia – 88 percent
Brazil – 87 percent
China – 87 percent
India – 84 percent
United States – 66 percent
United Kingdom – 62 percent