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The Small Business Administration tells us this: "For every dollar an employer invests in personnel screening, the savings range from five to sixteen dollars in reduced absenteeism, improved productivity, lower turnover, safer working environments, reduced insurance premiums and decreased employer liability."

1. Two (2) out of every ten (10) applicants has a criminal record.

2. A recent Time/CNN poll revealed 37% of those surveyed cited workplace violence as a growing problem in the nation.

3. Homicide was the leading cause of workplace death for women and the second leading cause for men in 1993, says National Institute of Occupational Safety and Health.

4. US Department of Justice reports that 54% of the violent workplace crimes committed involved acquaintances or individuals well known to the victims. Only 1% of the violent workplace crimes were committed by relatives.

5. An April 1994 survey by the Society for Human Resource Management found:

33% of all managers experienced at least one violent incident in the workplace

31% of these incidents were shootings, stabbings or sexual assaults.

67% were employee against employee or employee against a supervisor.

64% involved serious harm or required medical intervention.

6. An American Management Association study reports annual U.S. business losses due to:

Employee Pilferage - over $10 Billion.

Commercial bribery - over $10 Billion.

Computer fraud - over $500 Thousand per occurrence.

Embezzlement - over $4 Billion.

Vandalism - over $2.5 Billion.

Burglary - over $2.5 Billion.

Insurance/Workers’ Compensation fraud - over $2 Billion.

Shoplifting - over $2 Billion.

Arson - over $1.3 Billion.

Increasingly, courts are finding that if information regarding an employee’s instability or unsuitability for a position is available prior to hiring, or becomes available during employment, it is the employer’s duty and responsibility to seek out and act upon this information. Background checks and employment screening are an integral part of that responsibility. While no system can claim to be 100% fail-safe, courts have recently ruled that a reasonable attempt by the employer can be significant in the reduction of their liability in negligent hiring and/or negligent retention actions.

 

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Last modified: November 21, 2002