Background checks are a key component when hiring new staff members, but determining the ROI (Return on Investment) of completing them can be difficult as this goes beyond just the tangible cost, with factors such as time, productivity and increased efficiency also coming into play. In addition, a thorough and detailed background checking process helps to ensure that you hire the best talent for your business, by accelerating the overall time-to-hire and helping to prevent candidates dropping out of the process in favour of competitors.
Ultimately, a robust background checking process will bring many long-term benefits to an organisation. So, what factors should be considered when calculating the ROI of completing employee background checks?
Cost saving
Background checking employees can easily become a costly exercise. However, this largely depends on the methods used to complete the checks. Manual checks, completed in-house, can become a huge expense due to the time and resource required to conduct them. The same is true of outsourcing checks to a third-party vendor, where costs can easily build up and make this a very expensive option. When considering the tangible costs of background checking your employees, these options can significantly impact your ROI calculations. However, this can be alleviated considerably by using a more cost-effective solution such as an online background checking platform. With use of software, your process stays in-house (eliminating the need for third-party resources) but your staff’s time and resources are significantly reduced by using one platform to complete all of their checks, quickly and easily.
In addition, completing thorough background checks should be seen as an investment in preventing financial losses to an organisation further down the line, by ensuring you have the right fit people for your business.
Time saving
When considering the ROI of background checking, time is a critical factor. Completing background checks can take up a huge amount of administration time from start to finish, sometimes hours per week. By introducing background checking software, with high levels of automation, the need for manual checks are eliminated and the time taken per team member to complete these checks is largely reduced. This accelerates and streamlines your recruitment process, meaning you don’t lose out on top talent and your candidates can start sooner.
In addition, by integrating your in-house vetting software with your existing HR software and systems you and reduce the time spent switching between the platforms as the background checks you need are incorporated directly within your CRM or ATS, further accelerating your recruitment process.
Candidate experience
In today’s candidate-led market, their first experience of your company is crucial. The background checking process is typically a laborious one for candidates which could result in drop-off throughout the hiring process. When recruitment is already a costly undertaking, candidate drop-off is a key metric for calculating ROI. A thorough streamlined background checking process, that is quick and easy for the candidate to complete from their device, delivers a better experience for the applicant during the onboarding process.
Risk mitigation
Completing a series of background checks is a legal requirement in many industries, alongside the mandatory Right to Work checks. Carrying out pre-employment checks ensures you remain compliant and reduce the risk of any legal or compliance related issues that could prove costly further down the line.
By utilising a fully compliant technology solution for your background checking process, you can ensure that all of your required checks are carried out, whilst gaining peace of mind that all sensitive data is stored in adherence to the latest GDPR regulations, with a full audit trail.
Competitive edge
Manual tasks are becoming increasingly redundant with more and more businesses employing technology into their processes. Using an online automated platform for your background checks ensures you remain competitive with a faster overall recruitment timeline, ensuring your top talent doesn’t disappear in favour of a competitor.
All of the above points are important considering when calculating the ROI of the background checking process within your organisation. A variety of factors, beyond just the tangible cost, play a part in increasing the ROI throughout the process, including time, candidate experience, risk mitigation and competitiveness. Background checks offer a realm of advantages to a business when completed using an effective process.
At VettingGateway, we understand the pain points of background checking your employees. That’s why we have created the all-in-one software solution for in-house employee background checks. With high levels of automation, our platform can save you huge amounts of time, reduce your admin, and give your team time back in their day.
If you would like to learn more about how VettingGateway can improve your background checking process, please book a demo with one of our vetting experts below.