Employment Background Screening: Commodity or Service?

Is background screening a commodity?
Your answer to this question may affect how your organization competes in today’s talent-driven economy.

Human Capital: Your #1 Asset
In today’s talent-based organizations, people are the primary source of competitive advantage.

It pays to get hiring right, the first time.
The cost of hiring a new employee range from 1.5x to 3x their salary.

“Integrity is the essence
of everything successful.”
-Buckminster Fuller

Integrity matters.
The success of your organization depends upon the integrity of your people.
People  Integrity  Success

The role of background screening:
Background screening leads to…
A more qualified workforce
Reduced turnover
Increased workforce productivity
Enhanced workplace safety
Decreased employer liability
Reduced absenteeism
Which results in…
Reduce human capital expenses
Be more competitive
Increase brand value
Minimize risk
Boost profits

“Trust, but verify.”
- Ronald Regan

How well do you know the people who make up your workforce?
10% of the people we screen have a problem – criminal, alcohol, or related issue.
At least 20% have “resume boosting” issues.

Top 3 Negative Impacts of the “Wrong Hire”:
Turnover
Occupational fraud
Catastrophic Events

Why organizations screen:
An increasingly mobile society.
Employers are responsible for the behavior of their employees.
An individual’s past predicts their future.
More applicants to choose from today.
Sometimes it’s the law.
Contractual obligations.
To discourage applicants that have something to hide.
To base decisions on facts instead of “gut feel.”

It’s the right thing to do.
And one very simple reason…

Getting back to the question…
Is screening a commodity? Yes…
if your goal is simply to “check a box.”
if you don’t see the strategic value of it.
if you think you just need to “do a background check.”
small pieces of a background check can be viewed as commodities.

But the answer is “no” if…
your organization competes on the basis of talent.
you are trying to satisfy a duty of care to protect customers, coworkers, and the brand.
you seek to protect your organization from liability
the requirement to conduct background screening is intended to drive and affect the culture of the organization.

“Those who build great companies understand that the ultimate throttle for growth for any great company is not the markets, technology, competition or products. It is one thing above all others; the ability to get and keep the right people.”
-Jim Collins, Author, Good to Great

Commodities and Services
Commodity-based offerings:
Credit report
Social locator
Motor vehicle report
Criminal database
Drug screening
Credential verification
Education verification
Consent based SSN
Service-based offerings:
Onsite criminal records search
Employment verification
International criminal check
Civil records search
Investigative media search
I-9 legal right to work
Process engineering
Policy creation
Compliance fulfillment

Building a holistic background screening strategy

Key considerations.
Today’s business climate requires that we screen our employees.
It’s not a do-it-yourself job.
The biggest thing we can do is measure.

3 critical components

The value of measurement.
When we can measure the ROI of our employment screening programs, we can confidently build the case for screening as a service.

How to Measure the ROI of Screening
Start with the waste bank
Negative business factors that could be minimized with screening:
Turnover
Loses Due to Occupational Fraud
Catastrophic Events
$1.5 trillion dollar annual cost to the U.S. economy.

Next, look at the value of reducing turnover, fraud, and catastrophic hires.
For a company of 10,000 employees the value is approximately $14 M

Finally, measure the ROI.
Value of reducing the “waste bank” – Total program cost = ROI

Download Our Free Whitepaper:
The ROI of Background Screening
Learn how to calculate the ROI for your organization. In our example a company of 10,000 employees would add $12M to the bottom line through background screening.

Let us help your organization create an effective employment screening program.
Request a meeting>
Download Our Service & Pricing Guide >
www.proformascreening.com
Employment Screening Services

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Employment Background Screening: Commodity or Service?

by Proforma Screening Solutions on May 20, 2010

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Employment Background Screening: Commodity or Service? — Presentation Transcript