Employment Background Screening: Commodity or Service?

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Employment background screening plays a strategic role in talent-based organizations, where people are the #1 asset. This presentation explores the commodity vs. service argument surrounding how organizations view screening in the context of building a better workforce and competing in today's economy.

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Employment Background Screening: Commodity or Service?

  1. 1. Employment Background Screening: Commodity or Service?<br />
  2. 2. Is background screening a commodity?<br />Your answer to this question may affect how your organization competes in today’s talent-driven economy.<br />
  3. 3. Human Capital: Your #1 Asset<br />In today’s talent-based organizations, people are the primary source of competitive advantage. <br />
  4. 4. It pays to get hiring right, the first time.<br />The cost of hiring a new employee range from 1.5x to 3x their salary.<br />
  5. 5. “Integrity is the essence <br />of everything successful.”<br />-Buckminster Fuller<br />
  6. 6. Integrity matters.<br />The success of your organization depends upon the integrity of your people.<br />People  Integrity  Success<br />
  7. 7. The role of background screening:<br />Background screening leads to…<br />A more qualified workforce<br />Reduced turnover<br />Increased workforce productivity<br />Enhanced workplace safety<br />Decreased employer liability<br />Reduced absenteeism<br />Which results in…<br />Reduce human capital expenses<br />Be more competitive<br />Increase brand value<br />Minimize risk<br />Boost profits<br />
  8. 8. “Trust, but verify.”<br />- Ronald Regan<br />
  9. 9. How well do you know the people who make up your workforce?<br />10% of the people we screen have a problem – criminal, alcohol, or related issue.<br />At least 20% have “resume boosting” issues.<br />
  10. 10. Top 3 Negative Impacts of the “Wrong Hire”:<br />Turnover<br />Occupational fraud<br />Catastrophic Events<br />
  11. 11. Why organizations screen:<br />An increasingly mobile society.<br />Employers are responsible for the behavior of their employees.<br />An individual’s past predicts their future.<br />More applicants to choose from today.<br />Sometimes it’s the law.<br />Contractual obligations.<br />To discourage applicants that have something to hide.<br />To base decisions on facts instead of “gut feel.”<br />
  12. 12. It’s the right thing to do.<br />And one very simple reason…<br />
  13. 13. Getting back to the question…<br />Is screening a commodity? Yes…<br />if your goal is simply to “check a box.”<br />if you don’t see the strategic value of it.<br />if you think you just need to “do a background check.”<br />small pieces of a background check can be viewed as commodities.<br />
  14. 14. But the answer is “no” if…<br />your organization competes on the basis of talent.<br />you are trying to satisfy a duty of care to protect customers, coworkers, and the brand.<br />you seek to protect your organization from liability<br />the requirement to conduct background screening is intended to drive and affect the culture of the organization.<br />
  15. 15. “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.”<br />-Jim Collins, Author, Good to Great<br />
  16. 16. Commodities and Services<br />Commodity-based offerings:<br />Credit report<br />Social locator<br />Motor vehicle report<br />Criminal database<br />Drug screening<br />Credential verification<br />Education verification<br />Consent based SSN<br />Service-based offerings:<br />Onsite criminal records search<br />Employment verification<br />International criminal check<br />Civil records search<br />Investigative media search<br />I-9 legal right to work<br />Process engineering<br />Policy creation<br />Compliance fulfillment<br />
  17. 17. Building a holistic background screening strategy<br />
  18. 18. Key considerations.<br />Today’s business climate requires that we screen our employees.<br />It’s not a do-it-yourself job. <br />The biggest thing we can do is measure.<br />
  19. 19. 3 critical components<br />
  20. 20. The value of measurement.<br />When we can measure the ROI of our employment screening programs, we can confidently build the case for screening as a service.<br />
  21. 21. How to Measure the ROI of Screening<br />Start with the waste bank<br />Negative business factors that could be minimized with screening:<br />Turnover<br />Loses Due to Occupational Fraud<br />Catastrophic Events<br />$1.5 trillion dollar annual cost to the U.S. economy.<br />
  22. 22. How to Measure the ROI of Screening<br />Next, look at the value of reducing turnover, fraud, and catastrophic hires.<br />For a company of 10,000 employees the value is approximately $14 M<br />
  23. 23. How to Measure the ROI of Screening<br />Finally, measure the ROI.<br />Value of reducing the “waste bank” – Total program cost = ROI<br />
  24. 24. Download Our Free Whitepaper:<br />The ROI of Background Screening <br />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.<br />
  25. 25. Let us help your organization create an effective employment screening program.<br />Request a meeting><br />Download Our Service & Pricing Guide ><br />www.proformascreening.com<br />Employment Screening Services<br />

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