The cost of staff turnover can be extremely high for any organisation.
Depending on your company’s recruiting, onboarding, and orientation costs, this can range from 33% to 200% of the departed employee’s salary.
These organisations have found many methods to reduce staff turnover and its costs. One of which is an employment background check process.
Employment checks perform two functions for employers. Firstly, they allow employers to determine whether a candidate is fit for the job in question. Secondly, it protects the employer, their staff, and clients from any legal, reputational, and financial damage.
By understanding the background of a candidate, companies are more likely to make well-informed hiring decisions and lower staff turnover figures.
Keeping reading to see how employment background checks can help you reduce staff turnover.
What is the average cost of staff turnover in the UK?
The Society for Human Resource Management (SHRM) estimate the cost to replace a salaried employee is 6-9 months of their salary. Based on the UK’s average salary of £29,600, we can estimate that the average staff turnover costs between £14,800 and £22,200 per employee.
This estimate does not include unfair dismissal or illegal hiring activities, which can incur massive legal fees and fines.
How do employment checks reduce staff turnover?
Put simply, employment background checks provide employers and HR professionals with a clear picture of the person they might hire. In short, helping you make better hiring decisions.
If you can determine that a candidate will perform the role well and will not engage in adverse behaviour or practices, you are less likely to dismiss them; thus, reducing staff turnover.
What employment background checks should I use?
There are several essential employment background checks, which all employers must consider using during the pre-employment stage. These include right to work, criminal record check, credit check, referencing, etc.
Here at the most important employment checks and when to apply them:
Type of check |
When to apply it |
| Right to work | For ALL employees before they start work |
| DBS check | Basic checks are recommended at a minimum for all staff. Standard and enhanced checks are required by law if the employee will be working with vulnerable adults and/or children |
| Credit check | If the role is within the financial industry or the employee will be handling monies, financial data, or similar |
| Referencing | For ALL employees. Used to clarify and confirm employment and educational history |
| DVLA check | For all employees who will be driving on behalf of the company (even if it is their own vehicle) |
| International sanctions search | Click here for information |
| Social media screening | If the employer requires more behavioural information about the candidate which is not revealed during the interview process |
Takeaway
Employment checks are just one way to lower staff turnover numbers at your organisation. It can be argued that, with an employment check process, you are less likely to dismiss individuals who are having negative impact on your business (thus, reducing staff turnover).
In addition, your organisation is likely to save £10,000s, increase employee retention, and protect against financial, legal, and reputational damage that may arise from a bad hire.
Implementing an employment check process can be straightforward for smaller organisations. For larger organisations, you will require a system to manage the process effectively and compliantly.
If you decide to implement an onboarding and screening system, be sure it can perform the following tasks:
- Track, control, and manage the entire onboarding and employment check process
- Send out and chase references automatically
- Generate bespoke reports, workload stats, and performance
- Is built by an organisation who work in accordance with an information security framework (e.g., ISO27001)
- Allows you to apply for background checks with instant results (efficiency)
- Generates reference packs and documents for dating and filing (compliance)
There is a solution that can handle all the above, built by EBC Global for all sectors. Learn more about Employment Check Pro here.
Further Reading
10 Reasons To Invest In Pre-Employment Background Checks/Screening
5 Quick Ways To Ensure Employment Checks Compliance