Return On Investment For Background Screening

Abstract

Pre-employment screening has increased in recent years; however, only in the US does the percentage of new employees screened approach 50 percent. This paper examines the return on investment of background screening to display to readers the savings offered by such a simple outlay. The paper breaks down the costs associated with a bad hire in terms of direct and indirect costs. The specific costs analyzed are Productivity, Morale, Customer Value, Theft, Absenteeism, Accidents, Management Time, Termination, Recruitment, and Training. In each area, this paper assigns a theoretical value to each cost and puts them together to calculate the total ROI.