These days, when you read publications about management or human resources, it is impossible not to see articles about the “war on talent”. The management for talent has become the ideal mantra in creating competitive advantage for companies of all kinds in our economic marketplace.
The focus employers have one tablet every time they hire new applicants, especially for management, technical and high valued jobs; many important things riding on the hiring decisions of the employer. There is a lot of success for companies that hire good employees, but hiring bad employees may cost companies a lot more than status or money.
Bad Hires Cost Companies
Companies who have reports of making bad hires lost tens of thousands of dollars in their financial cost, 29 percent of German employers have reported that they lost at least 80,000 dollars due to hiring mistakes. Making bad hires can have several consequences across a company; the costs are high when you add strained clients and employee relation, missed opportunities of sales, legal issues and resources for hiring and training new applicants.
There are reports that employers have insufficient information that contributed to the employer’s bad hiring decisions and failure to check an applicant’s references which is one-third of the problem, lacking in information on applicants and their background and experiences.
Background check companies and their pre-employment screening serves as a critical role in finding information that the employers need to make a good hire. The pre-employment screening includes background checks. Background checks provide information that can help employers make the right hiring decisions, but if done poorly, it will have a negative Impact to their company.