Many employers think of background checks as just another hiring expense. But skipping them or cutting corners to save money can lead to far greater costs down the road. From increased turnover to legal liabilities, the price of not screening can be much higher than you think.

Increased Turnover and Training Costs

Hiring the wrong person is expensive. When an employee leaves, whether voluntarily or through termination, you pay for lost productivity, recruiting, and retraining. The U.S. Department of Labor estimates a bad hire can cost up to 30% of the employee’s first-year earnings. A thorough background check can reveal red flags before they turn into turnover.

Workplace Theft and Fraud

Employees have access to company property, financial systems, and sensitive information. Without screening, you may unknowingly hire someone with a history of theft or fraud. The Association of Certified Fraud Examiners reports that businesses lose 5% of revenue to occupational fraud each year and the median loss per case is $125,000.

Legal and Compliance Risks

Failing to properly vet employees can open your business to negligent hiring lawsuits. If an employee harms a coworker, customer, or the public, and it’s found that you failed to exercise due diligence, you could face costly legal action. For regulated industries, noncompliance with background check requirements can also result in fines, penalties, and reputational damage.

Damage to Company Culture and Reputation

A single bad hire can erode trust among your team and damage your brand in the eyes of customers and partners. Rebuilding a positive reputation takes far more time and resources than preventing problems through a careful screening process.

The Bottom Line

Background checks are not just about avoiding risk, they’re about making informed decisions that protect your investment in people and your business. The cost of screening is minimal compared to the financial, legal, and cultural fallout of hiring without it.

Need Help with Background Checks or Compliance?

Whether you’re hiring new talent or updating your screening processes, the Swailes Background Check team is here to help. From criminal background checks and FCRA compliance to drug testing, employment and education verifications, MVR reports, credit history reviews, and Social Security number validation, we provide fast enrollment and expert support every step of the way.