Companies or big corporations work solely on the hard work of their employees. These employees undergo an extremely tough selection process after which they are intensively trained so that they can maximize the companies profits directly or indirectly. This is the reason why these corporations look after their employees by handsomely compensating them regularly with yearly bonuses and health covers. The whole process of talent acquisition and management requires both time and resources so therefore one must always conduct a pre-employment investigation to be sure that you are not wasting your efforts while hiring a new employee.
A bad hire can seriously damage a company’s image and reputation. Furthermore, the loss of time and money to hire and train a replacement is extremely costly. The team’s morale is lowered and there is a decrease in the overall productivity of the company which is why one should conduct due diligence before hiring anyone.
Let us look at a few reasons why pre-employment investigation can save a corporation a lot of money:
Decrease in team performance
With the rise in technology, nowadays, it has become very easy for people to fake their credentials on resumes. In such scenarios, the employee hired is highly underqualified especially in sectors that are labour intensive which requires skilled labour. The company will spend a big amount on his/her training and in the end, his performance will lower the overall performance of the team. He will become the weak link and subsequently, the team morale will also lower. This can be devastating for a corporation resulting in a decline in sales, more pay cuts and eventually paying an extra amount to find a replacement for the bad hire. All this could have been avoided if a proper pre-employment investigation and background check was conducted by the corporation to verify the new hire’s skills and experience.
Fraud and cybercrime
As the internet is slowly penetrating India even in rural areas, there has been a significant increase in cybercrimes and frauds happening around the country. One such common activity is noticed in what is called corporate espionage, which is stealing sensitive information from the corporation. Some employees falsify their background or hide certain aspects regarding their employment history to get employed. In these cases, organizations are prone to cybercrimes and leakage of sensitive information which directly results in an overall decrease in sales and capital. Its stock price might also tumble. There is no end to which that information can be misused but in all cases, it will cause an organization a huge loss.
The hostile environment for employee and customers
In industrial sectors and other industries where a certain amount of safety procedures are needed to be followed, people employed there need to have minimum experience and skills to operate and produce an output or a product. In such scenarios hiring underskilled employees can cause more problems than the existing ones. The products produced can be of a questionable quality which puts the customers at risks. Failure to conduct proper background checks can lead to companies hiring employees with past criminal charges and questionable employment history. This also puts the employees at risk that are already working there. In extreme cases, there can be unimaginable damage to the company which is way beyond monetary value, something irreplaceable.
It is evident that without conducting a thorough pre-employment verification before hiring employees, companies take a huge risk and can incur losses of millions of dollars. In today’s world with the rise of digitization of public and private records, all of our data can be easily retrieved and managed hence now no one has an excuse. One must conduct detailed background checks so that the corporations perform well and the customers receive quality product and services. Today you can hire private detectives to conduct such checks so that you are assured that the work environment and the people working in your company are not there to bring you and your company down.