How Are Background Checks Changing Quality of Hire?

By Michael Klazema on 1/10/2011

In the modern business world, the quality of hire is becoming more and more important, and a recent study by the Aberdeen Group has shown how background checks have started to impact hiring procedures and performance.

Employers are discovering that as a lot of people are seeking a new job in these tough economic times, it tends to inundate companies with new resumes and applications. In other words, it can become very difficult for many employers to confidently wade through all these potential employees and find the one that will be right for the job. In many industries, there are also a number of legal compliance issues that must be considered for the talent acquisition process. Employment background screenings have become a very important tool for increasing the quality of the hire.

Different organizations have different requirements for their hiring process, and this study shows how many different organizations have benefited from more effective hiring results. For example, the screening and filtering process is much more effective, which will save time and allow employers to focus their interviews on the people that have already been identified as good candidates for the job.

One of the major findings of the study said that companies that implement some form of automated background checking experienced a 60% improvement in the quality of their hires compared to companies that did not use any form of screening. The study also showed that these organizations were able to improve other metrics like the time-to-hire as well as the cost-per-hire.

When so many people are competing for the same job, it is conceivable that the information they provide is less than accurate. Unfortunately, many companies don’t discover this until it is too late. When an organization employs a solutions background checks, though, it will be possible to effectively find the right person for the right job.

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