In order to conduct a realistic cost / benefit analysis of conducting background checks, you need to be able to anticipate both the short and long term costs. In this situation, the comparison would be between the immediate or short-term cost of paying for pre-employment screening to be conducted, and the long-term cost associated with not running background checks.
The short-term cost of background checks is going to come from the thoroughness of the check. Will you hire a background check company to conduct your pre-employment screening, or will you do it yourself? If you hire a background check company, chances are they can investigate more areas than you can yourself. They may charge a flat fee per month, or they may charge per check depending on the frequency of your hiring needs.
The long-term costs to consider if you are not running background checks is the impact of higher turnover rates. If you do not weed out the bad seeds up front, how much will you pay for their initial training and later on for training their replacement? What about your potential inventory or cash losses created from hiring a career criminal? Not every employer prosecutes for theft, even though they terminate employees for it.
Only you can analyze your known data and speculate the rest with any degree of accuracy. Most companies find out that background checks eventually balance out the cost of a single bad hire. Unfortunately, most of those companies figure it out only after a major case of employee theft has surfaced.
To purchase Pre-Employment Screening Services or for more information on background check experts, background checks, criminal background checks, employee background checks or pre employment screening contact us at the background check company or call 1.866.914.2567