Strong Economy Means Higher Job Turnover for 2018
Dec 29, 2017
With 2017 ending with record highs in the stock market, the job market for 2018 is expected to be robust. In addition to many companies hiring for new positions, the rate at which people will be quitting jobs is expected to be about twice the level it was during the economic collapse of the "great recession." Thus, the need for hiring will exist at countless companies and organizations, and that also necessitates employee background checks.
Whether it's a small business, municipal government, multinational corporation, or a non-profit – organizations and companies need to properly vet new hires to protect their brand, their employees, and their customers. Performing proper employee background screening mandates having appropriate procedures, disclosures, and authorization forms, as employee screening is governed by federal law (the FCRA – Fair Credit Reporting Act) and often also state and local laws.
Additionally, performing thorough "best practices" employee background checks will help protect companies against Negligent Hiring and Retention Liability lawsuits. The cost of a proper background check typically will be less than one day's pay. In those occasional instances when it costs slightly more, due to aliases that need to be checked, or certain jurisdictions where the county court assesses an onerous court access fee, the cost of an employee background check is still nominal.
Consider the expense of training someone that your company should never have even hired. If your company does not perform proper employee background checks, an individual with a dangerous criminal background could be hired. Then, your company will instead pay wages or salary that could easily add up to thousands or even tens of thousands of dollars over a few months. Plus your company will be at greater risk, should a Negligent Hiring and Retention Liability lawsuit arise.
So if a strong economy in 2018 creates a need for hiring for your organization, make certain that it performs employee background checks. Plus, be sure to use a reliable background screening company that is also a consumer reporting agency (CRA). A reputable CRA can guide your company through its disclosure responsibilities that the FCRA – Fair Credit Reporting Act, imposes upon all employers.
Posted by: Rudy Troisi. President, Reliable Background Screening.