According to the 2012 HireRight Employment Screening Benchmarking Report, employers are beginning to shift their focus from cost-cutting to growth. During the recession, many employers’ primary focus was on cost reduction and containment.
Now that optimism is improving, employers are looking for ways to achieve growth and strategic advantage. What many employers may not realize is that an effective background screening program can help employers overcome these common business challenges.
The 2012 HireRight Employment Screening Benchmarking Report reveals the four most common business challenges that employers are currently facing and how background screening can help overcome them:
1. Supporting Growth
Despite the continuing economic challenges that many employers are facing, individuals surveyed are optimistic about improved employment conditions in the remainder of 2012, yet are concerned with talent acquisition and management.
Forty seven percent of respondents cite finding, retaining and developing quality talent as their top concern. This concern may be amplified by the fact that 71 percent of respondents expect an increase in hiring during the current year.
To help address this concern, employers are leveraging background screening to help improve the quality of hire. Background screening helps employers identify top candidates, which in turn helps reduce turnover and mitigates other business risks.
2. Mitigating Legal and Regulatory Risk
Employers that fail to maintain compliance could face serious penalties ranging from lost contracts, fines and even lawsuits. Recognizing this, respondents cited that maintaining compliance and staying current with regulatory changes is their second greatest business challenge.
To help ensure compliance and mitigate risks, employers are partnering with well-respected background screening providers to help maintain compliance. Many leading on-demand employment background screening providers possess expertise in employment screening compliance, and provide tools to help mitigate risk.
3. Containing Costs
Following talent acquisition and compliance risks, cost containment rounded out the top three business challenges facing employers today (24%), a decline from the top priority in 2011.
A background screening program can help employers to contain costs by increasing hire quality and minimizing worker turnover. According to The Recruiting Times, employers spend about $7,000 to replace a salaried employee, $10,000 to replace a mid-level employee and $40,000 to replace a senior executive. The average cost of a poor hire can amount to 30 percent of that hire’s first year potential earnings, according to the U.S. Department of Labor.
Background screening for employment history, education history, criminal history and drug testing and other criteria can help eliminate poor candidates from the hiring pool and reduce the costs of replacing workers.
4. Building a Competitive Advantage
As businesses focus on growth, talent acquisition becomes a crucial component for executing business plans and pursuing product development. Twenty-three percent of survey respondents listed building and maintaining a competitive advantage as a challenge in 2012. Employers said that attracting and retaining experienced workers was their main concern (45%) and that acquiring entry-level employees was a secondary issue (24%).
An effective background screening program can increase hire quality and longevity to help businesses support their plans for growth. In addition, an on-demand background screening program that provides quick turnaround time may allow employers to acquire better talent as compared to manual hiring processes that may result in missing out on top talent.
Free Report: HireRight 2012 Employment Screening Benchmarking Report
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