In general, employers are responsible for exercising reasonable care in determining that an employee is fit and qualified for employment before hiring him or her. If a limousine company hires chauffeurs without conducting appropriate background checks, the company could be exposed to negligent hiring lawsuits. Average awards in negligent hiring cases surpass $1 million.
Why verify your applicants’ credentials? A survey by CareerBuilder.com found that 57% of hiring managers say they have caught a lie on a candidate’s application.
For example, let’s say a company hires a chauffeur without performing appropriate background checks, and that chauffeur has a prior criminal record, prior DUI convictions, and/or a prior driver’s license suspension. The chauffeur subsequently causes harm to a passenger or others due to negligence. In this instance, the company could be faced with a multi-million dollar negligent hiring lawsuit. By failing to conduct an appropriate background check on the applicant, the employer may be liable if the background check would have determined that the chauffeur had a criminal history or driver’s license violations, and in turn was unfit for employment.
Other information of interest:
- 30% of business failures are due to poor hiring practices.
— US Department of Commerce
- 67% of job applicants’ resumes in the U.S. contain misrepresentations.
— American Psychological Association
- The average award for a workplace lawsuit exceeds $1 million per case.
— Workplace Violence Research Institute
- A 2010 study by the Association of Certified Fraud Examiners found that the median loss for occupational fraud suffered by small businesses with 100 employees or less was $155,000. An effective background check program can prevent that rogue applicant from entering your organization and avoid significant occupational loss.
Why verify your applicants’ credentials? A survey by CareerBuilder.com found that 57% of hiring managers say they have caught a lie on a candidate’s application. Ninety-three (93%) of those who spotted the lie did not hire the candidate because of it. Why? Because when you hire an applicant who uses lies and fabrication to get hired, it is likely that the same dishonesty will continue during employment.
One of the biggest expenses employers face is employee turnover. Turnover can cost employers 50% to 200% of an employee’s salary. It usually results when employees claim they are qualified for a particular position, but not long after being hired you quickly learn they are not. Consider this the next time you may hire someone. A recent survey by CareerBuilders.com found that almost half (49%) of hiring managers have caught a candidate lying on his or her resume.