By Russ Warner, VP Marketing –
When hiring a new employee, organizations consider many factors. For one, a former criminal record can be considered. Ironically, if there is no evidence indicating criminal activity in the past or if an employee was terminated for dishonest activity but it is never disclosed, a future challenge can potentially be hidden.
Without evidence to suggest that an individual has previously been deceptive or dishonest, how can an employer protect its organization and assets? Millions of dollars are lost through embezzlement and business losses when dealing with dishonest employees.
Company Costs When Firing
When an employee is dismissed, there are tangible costs to for the organization. Costs include productivity losses, hiring and training replacements, and slowed productivity as the new employee catches up and gets used to the position.
Researchers Boushey and Glynn conducted 30 case studies and found that on average, to replace an employee costs the equivalent of one-fifth of that employee’s annual salary. This figure was determined to be valid no matter the salary range. More specialized jobs with higher education levels prove to have even higher turnover costs.
Financial costs for employers include separation costs such as severance pay, temporary costs from others covering the position while a new employee is sought, as well as costs associated with advertising, interviewing, screening potential new employees, and training new employees. Additionally there are costs including time, productivity, morale and education.
When an employee is dismissed because of dishonest behavior, these costs become a very sore point because of the apparent inability to have mitigated the risk.
Pre-Employment Screening Reduces Turnover
Turnover of any type is an issue, especially considering that annually, one-fifth of employees nationwide will quit their jobs and another one-sixth will be let go or fired. Compound those rates by the occasional dismissal for cause.
Outside of the U.S., combatting the costs of staff turnover can be remedied through pre-employment screening or ongoing screening.
EyeDetect™, a polygraph alternative, helps organizations screen employees for fraud, bribery, theft and drug use using new technology that measure blinking, pupil dilation, rapid eye movement, and other eye behaviors as a subject answers questions.
With this innovative technology, employers can screen potential new employees in an ethical, safe, and unbiased fashion to save the future costs of terminating and replacing a dishonest employee.