Hiring a new employee is an investment—of time, money, and trust. But skipping or skimping on a proper background check can turn that investment into a liability. While it may seem like a way to save time or money upfront, hiring without proper screening often leads to costly and preventable consequences.
At National Background Check, Inc. (NBCI), we help businesses of all sizes avoid these risks by providing accurate, compliant, and timely background check services. Here’s what every employer should know about the hidden costs of cutting corners in the hiring process.
1. Financial Losses from Employee Theft or Fraud
According to the Association of Certified Fraud Examiners, small businesses lose an average of 5% of revenue each year to fraud—often perpetrated by employees. Without proper screening, it’s easier for individuals with criminal records or dishonest histories to slip through the cracks.
Cost example:
One case of embezzlement or theft can cost a company tens of thousands—or even millions—depending on the role and level of access.
2. Legal Liability and Negligent Hiring Lawsuits
Hiring someone without due diligence can lead to lawsuits if that employee harms a customer, coworker, or member of the public. Courts have held employers liable for “negligent hiring” if they fail to properly vet staff for criminal or violent histories.
Cost example:
Negligent hiring lawsuits can result in six-figure settlements or judgments—not to mention reputational damage.
3. Cost of Turnover and Rehiring
The average cost to replace an employee is estimated at one-third of their annual salary. If a bad hire is made due to a missing or incomplete background check, businesses often have to repeat the recruiting, interviewing, and onboarding process—draining productivity and HR resources.
4. Workplace Safety and Culture Risks
Employees who are not properly vetted may pose a safety risk to coworkers and customers. Background checks help identify histories of violence, abuse, or drug misuse that could compromise a safe and professional workplace.
Result:
Low morale, increased absenteeism, and a damaged internal culture—especially if other employees feel unsafe or unsupported.
5. Compliance Violations and Fines
Certain industries, like healthcare, education, transportation, and finance, are required by law to conduct background checks (often fingerprint-based). Failing to comply can result in regulatory fines, revoked licenses, or government contract loss.
NBCI ensures full compliance with:
- Fair Credit Reporting Act (FCRA)
- Department of Transportation (DOT)
- State licensure boards
- Industry-specific mandates
6. Missed Red Flags = Reputational Damage
Hiring someone with a serious offense—like fraud, abuse, or sexual misconduct—can lead to public relations crises if their actions are later revealed. In the age of social media, a single incident can quickly go viral and tarnish your brand.
How NBCI Protects Your Business
At National Background Check, Inc., we offer:
- FBI- and state-level fingerprint background checks
- Custom pre-employment screening packages
- Drug testing and identity verification
- Real-time tracking and fast results
- Nationwide and international coverage
All services are compliant, affordable, and scalable—designed to reduce the real risks and hidden costs of hiring without screening.
Ready to Protect Your Business?
Don’t let a quick hire become an expensive mistake. Let NBCI help you build a safer, more reliable workforce with proper screening from the start.
Call us at (877) 932-2435
National Background Check, Inc. – Trusted Background Checks Since 1999
Safe hires. Smart business. Proven protection.