Industry Fast Facts

HireRight works to help prevent risks that companies face in the workplace every day. Read the statistics below to see why a partnership with HireRight is important to the success of your organization.

False Information

  • 63% of all job applications contain inaccurate information.1
  • 85% of employers catch candidates lying on their applications.2
  • 21% of job applicants falsely claim they have a college degree.3
  • 33% of job applicants misrepresent job descriptions.3
  • Nearly one-third of job applications alter the dates of their employment.3

Form I-9 Penalties

  • 8 million unauthorized immigrants were either working or looking for work in the United States in FY 2014.4
  • DHS issued 643 final fine orders and fined companies a total of $16.28 million for hiring unauthorized immigrants in the FY 2014.5

Drugs

  • More than 70% of substance abusers are employed.6
  • Drug abuse and addiction cost American companies $81 billion every year.6
  • 11.4 million people (4.2% of the population of the United States) misuse opioids.7
  • In October 2017, the president of the United States declared the opioid crisis a public health emergency.8
  • Substance abusers are at least 33% less productive.9
  • Substance abusers miss more than 50% more work days than average workers.10
  • 81% of employers do not have a comprehensive drug-free workplace policy in place.7

Employee Theft

  • In 2017, 33.2% of inventory shrink was due to employee/internal theft.11
  • In 2017, the average employee theft case was $1,203.16.11
  • 30% of all business failures are caused by employee theft.12
  • Inventory shrink of all types is trending upwards, with 20% of all surveyed reporting they theft have experienced inventory shrink at 2% of sales or more.11
  • 75 % of all cases of employee theft and other crimes go unnoticed.13
  • 75% of all employees steal at least once.13

Bad Hires

  • The average cost of a new employee is $57,968, not including training costs.14
  • The average settlement of a negligent hiring lawsuit is nearly $1 million.15
  • Employers have lost more than 75% of negligent hiring cases.16
  • It costs $7,000 to replace a salaried employee, $10,000 to replace a mid-level employee, and $40,000 to replace a senior executive.17
  • The cost of a bad hiring decision can be as high as $240,000.15
  • 23% of new businesses that fail site poor hiring as the main reason for their failure.18

 

References


    False Information

  1. HireRight, Candidate Health Check: Application Errors Up in 2015, 2015, https://www.hireright.com/emea/blog/2015/09/candidate-health-check-application-errors-up-in-2015/
  2. 2018 Employment Screening Benchmark Report, 2018, https://www.hireright.com/resources/view/2018-employment-screening-benchmark-report
  3. The Dishonest Tradition of Fudging the Facts on a Resume, Business2Community, 2013, https://www.business2community.com/human-resources/the-tradition-of-fudging-the-facts-on-a-resume-0553359#!bjmAxY

  4. Form I-9 Penalties

  5. Pew Research Center, Size of U.S. Unauthorized Immigrant Workforce Stable After the Great Recession, 2016, http://www.pewhispanic.org/2016/11/03/size-of-u-s-unauthorized-immigrant-workforce-stable-after-the-great-recession/
  6. To Tackle Illegal Immigration, Go After the Employers, The Hill, Nolan Rappaport, 2017, https://thehill.com/opinion/immigration/358892-to-tackle-illegal-immigration-go-after-the-employers

  7. Drugs

  8. National Council on Alcoholism and Drug Dependence, as reported by Addiction Center, Alcohol and Drugs in the Workplace, 2018, https://www.addictioncenter.com/addiction/workplace/
  9. Society for Human Resource Management, Marijuana Laws, Opioid Crisis Prompt Workplace Policy Updates, Lisa Nagele-Piazza, 2018, https://www.shrm.org/resourcesandtools/legal-and-compliance/employment-law/pages/marijuana-laws-opioid-crisis-prompt-workplace-policy-updates.aspx
  10. Dr. Elinore F. McCance-Katz, National Survey on Drug Use and Health, by SAMHSA, 2017, https://www.samhsa.gov/data/sites/default/files/nsduh-ppt-09-2018.pdf
  11. National Business Group on Health, An Employer’s Guide to Workplace Substance Abuse: Strategies and Treatment Recommendations, 2009, https://www.businessgrouphealth.org/pub/?id=f3151957-2354-d714-5191-c11a80a07294
  12.  National Safety Council, NORC at University of Chicago, Drugs at Work: What Employers Need to Know, 2017, https://www.nsc.org/work-safety/safety-topics/drugs-at-work

  13. Employee Theft

  14. National Retail Federation Security Survey, 2018, https://www.nrf.com/research/national-retail-security-survey-2018
  15. American Management Association and US Chamber of Commerce as reported by Business Practical Knowledge, Employee Theft, 2012, https://businesspracticalknowledge.wordpress.com/legal-security/employee-theft/
  16. U.S Chamber of Commerce as reported by Business Practical Knowledge, Employee Theft, 2012, https://businesspracticalknowledge.wordpress.com/legal-security/employee-theft/

  17. Bad Hires

  18. Undercover Recruiter, What is the True Cost of Hiring a Bad Employee?, 2016, https://theundercoverrecruiter.com/infographic-what-cost-hiring-wrong-employee/
  19. Society of Human Resources Management, The Cost of a Bad Hire Can Be Astronomical, 2017, https://www.shrm.org/resourcesandtools/hr-topics/employee-relations/pages/cost-of-bad-hires.aspx
  20. Zurich, Negligent Hiring: How to Reduce Your Chances of Hiring a Claim, 2010, http://hpd.zurichna.com/whitepaper/zurich-negligent-hiring.pdf
  21. Recruiting Times, Replacing Staff Costs Business 4.1 Billion a Year, 2015, https://recruitingtimes.org/news/5316/replacing-staff-costs-businesses-4-1bn-a-year/
  22. Forbes, Top 20 Reasons Why Startups Fail, 2016, https://www.forbes.com/sites/groupthink/2016/03/02/top-20-reasons-why-startups-fail-infographic/#294187fd3911