The ROI of Background Screening

The ROI of Background Screening

HR Management http://www.hrmreport.com/article/The-ROI-of-Background-Screening/

Points of Interest:

• The net annual Return On Investment for background screening is over 900%.
• There are scarce few business expenses that can generate the type of ROI that background screening can.
• According to the US Small Business Administration, for every dollar an employer invests in employment screening, the return on investment ranges from $5-16, resulting from improved productivity, reduced absenteeism, lower turnover – and decreased employer liability.
• The Saratoga Institute estimates the cost of turnover at 150% of annual compensation for salaried workers.
• Dr. Bradford Smart suggests that the cost for senior executive turnover is as high as 2,400% in his book Topgrading.
• The United States Department of Commerce reports that 30% of all business failures result from theft or embezzlement.