Budget For Background Checks
Have You Determined a Budget For Background Checks For Your Business? Businesses hire all the year-round. It means background checks are a consistent expense of a company. Have you devised a budget for this business domain?
The coronavirus pandemic has had a devastating impact on the US economy. Businesses have taken a serious hit in revenue and are struggling to keep up with their operational costs. In such a scenario, it’s paramount to set an appropriate budget for background screening so that you do not end up spending more than what is needed.
Here are three useful tips that can help you determine a budget for your company’s background screening program.
1. Take Your Turnover Rate into Account
Your company’s turnover rate is one of the key factors you should take into account while setting a budget for background screening. Every time an employee leaves your company, you have to invest money to screen and recruit another person to replace them. So, the amount of money you set for your screening budget should be proportionate to your company’s turnover rate.
You can calculate it in the following manner.
- Add the number of employees who resigned or were terminated over the last 12 months.
- Divide the number by the total number of employees in your company.
- Multiply the resulting answer by 100.
For instance, if 5 employees left your company last year, and your company has a workforce of 100 employees, then your turnover rate is 10% (10/100 x 100).
2. Establish a Job-Based Screening Process
Not every employee needs to be screened the same way. A customer care representative need not be screened extensively. A cybersecurity expert, on the other hand, needs to be screened very carefully, due to the nature of their work.
With this being the case, it makes little sense to run an extensive background check on every single employee. Instead, you should establish a job-based screening process, wherein the level of scrutiny and screening differ from one employee to another, depending on their job responsibilities.
3. Follow the Waterfall Screening Strategy
Running a series of background checks on every prospective employee is a waste of time and money, as only a small percentage of them might be actually qualified for the position they apply for. So, it might be a good idea for you to follow the waterfall screening method.
In this method, you run a basic background check in the first round to eliminate those who are unqualified and then run additional checks on those who move to the next round.
For example, you can run a criminal background check on all prospective employees to eliminate those with a history of criminal activities. In the next round, you can run a drug test to eliminate potential addicts and abusers. This way, you can avoid spending your money on unqualified candidates by running extensive background checks on them.
Working With the Right Provider Helps in the Budget For Background Checks
One of the ways in which you can reduce your screening budget is to work with a background check company that offers volume-based pricing and provides affordably priced packages that are best suited for your recruiting needs.
You should also make sure that the company you work with is accredited by the Professional Background Screening Association (PBSA) and has a track record of providing reliable, accurate, and actionable information.
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