A Division of James M. Sweeney & Associates, Inc. | Inquirehire
The Risk Manager
A Quarterly Newsletter from James M. Sweeney and Associates, Inc.
Are you putting your business at risk and wasting money at the same time?
If your organization has not implemented employment screening as a part of the recruitment process, your organization could be taking unnecessary risk and wasting money.
Employment screening is a legal, fast, and cost effective way to identify high risk candidates before they become poor hiring decisions. Employment screening allows organizations to gather valuable information about a candidate that is not readily available from the interview process.
- Identify verification
- Criminal conviction history
- Sexual offense history
- Credit, driving, and civil court history
- Employment verification
- Education verification
When you consider that 7 to 10% of all applicants have a criminal conviction in their past, and over 50% of all resumes contain material misstatements of fact, employment screening is the only way to avoid making a poor hiring decision.
Poor hiring decisions can cost an organization a substantial amount of money. To calculate the cost of poor hiring decisions for your organization, simply complete the information below. You can also calculate the savings for your organization by implementing pre-employment screening into your recruitment process.
Employment screening is an effective risk management strategy, but it also makes good business sense. Spending a small amount of money on employment screening saves substantial costs associated with poor hiring decisions.
| A | Ads placed | |
| B | Price per ad | |
| Total Advertising: A x B = | ||
| C | HR staff hours | |
| D | HR costs per hour | |
| Total HR Costs: C x D = | ||
| E | Candidates interviewed | |
| F | Number of interviewers | |
| G | Interview costs per hour | |
| Total Interview Costs E x F x G = | ||
| H | Training hours for new hire | |
| I | New hire cost per hour | |
| Total Training Costs H x I = | ||
| J | Loss of productive hours | |
| K | New hire cost per hour | |
| Total Lost Productivity J x K = | ||
| M | Total Cost of a Single Poor Hiring Decision | |
| N | Positions Filled Annually | |
| O | % of positions filled with a high risk candidate | |
| P | Total Annual Costs M x N x O = | |
| Q | Positions Filled Annually | |
| R | Avg cost per employment screen | |
| S | Annual Screening Costs | |
| Annual Savings with Employment Screening P - S = | ||