Employment Checks: Impact of a Bad Hire on Your Business

Organisations everywhere can often feel stuck constantly recruiting, hiring and onboarding new employees. Along the way, mistakes are bound to happen from both the candidates’ side and the business’ side; sooner or later, there will come a time when a company hires a bad employee for their vacancies.

Making a wrong hiring decision can have business implications, but most cases can be avoided or mitigated by well-trained HR professionals who use reliable pre-employment screening tools. To give you some perspective on the risks associated with bad hires and how you can protect your organisation, the background screening consultants at Eurocom CI have created this short guide.

Do Companies Do Background Checks Before Hiring?

Almost every employer must conduct pre-employment background screening checks before hiring candidates. These are part of a company’s due diligence process, with different employment checks varying for each organisation. 

Most companies will conduct right-to-work checks, employer reference checks and criminal record checks if a candidate will be responsible for a regulated activity or working with vulnerable groups. More senior roles would likely involve more thorough and structured background checks for employment.

The purpose of criminal background checks is to ensure prospective employees are right for the organisation and won’t pose a risk. Organisations may conduct pre-employment checks, whereas others may carry out background checks at the last stage of the onboarding process after the candidates have accepted the role.

Pre-employment checks can seem time-consuming, but if an organisation’s HR team follows a structured approach, it can save time in the long run.

6 Ways a Bad Hire Can Impact Your Organisation

It’s surprisingly easy for unqualified and unsuitable people to weave their way into a company. Many employers in the UK can report an experience of at least one bad hire for a position. 

What kinds of risks can poor hires cause for a business? Below are six examples.

Onboarding, Training and Replacement Costs

Even when successfully recruiting, training and onboarding a candidate, the costs can quickly add up. Should that person not be suitable in the end, you’ll need to find a replacement, and as such, you’ll be responsible for doing the same thing.

Wasted Time

Hiring the wrong people essentially means all your hard work has been for nothing. This includes advertising the position, going through CVs, shortlisting, interviewing and all the induction and training program enrolments, which eats up many hours of lost time on projects or business development.

Team Performance and Morale

Underperforming or disgruntled employees can affect the rest of your team, thus affecting productivity, morale and efficiency. This is made worse when other employees have to pick up the slack caused by the disruption of an unsuitable candidate.

Disruption of Work Projects

Underperforming or disgruntled employees can affect the rest of your team, thus affecting productivity, morale and efficiency. This is made worse when other employees have to pick up the slack caused by the disruption of an unsuitable candidate.

Lost Customers and Revenue

Naturally, all staff will be responsible for upholding your company’s standards, values and professionalism in the eyes of your clients. Unsuitable individuals can make the wrong impression on clients if they don’t align with the rest of your organisation, thus potentially causing contracts to be cancelled, notice periods to be given, and revenue to be lost.

Reputational Damage

Word of mouth is effective at building a company’s reputation, but one bad experience for a client can seriously negatively affect it. Bad hires with insufficient customer service experience could lead to one such occasion.

Causes of Bad Employment Hires

There are several reasons bad hires can happen, including:

  • Lack of coherent pre-employment screening processes and structure
  • Severe lack of preparation, foresight and thoroughness on the HR teams’ behalf
  • Time restrictions and deadlines
  • Higher priority business projects
  • Biases and preferences
  • Culture mismatches
  • Poor management and onboarding

How to Avoid Pre-Employment Screening Mistakes

There are some simple steps you can take to ensure you protect your organisation from a bad hire.

  1. Ensure your pre-employment background screening process aligns with your hiring and onboarding processes.
  2. Establish a crystal clear hiring process to stick to and conduct all relevant background checks for complete transparency.
  3. Use a series of initial assessments and tests to understand candidate abilities better, allowing for higher-quality shortlisting.
  4. Assign clear roles and responsibilities within your hiring team to avoid confusion.
  5. Ensure interviews are structured, thorough and supported by any on-site tasks (if relevant) to ensure you’re entirely aware of candidates’ skills and attitudes.

Avoid Bad Hires with Eurocom CI Pre Employment Screening Checks

At Eurocom CI, we specialise in helping organisations develop bespoke, structured pre-employment processes, supporting them with any background checks they need. This includes digital ID verification services, financial and anti-money laundering (AML) checks and numerous others, which we can customise to suit your personalised employment portal.

To arrange a free demonstration, please contact us directly.