GRMS Shows How to Save Your Business From The Spiraling Cost of A Bad Hire
If you’ve ever googled the phrase “a bad hire”, you must already be aware of its cost. According to some of the leading surveys of the world, bad hires can cost up to $240,000 in expenses to a business. The cost of a bad hire can be equal to about 30% of your annual earnings. If that is not enough to shake you out of a slumber, here is another fact – a 2020 report of the Association of Certified Fraud Examiners (ACFE), organizations are bound to lose about 5% of their yearly revenue due to fraud, with the smaller businesses losing up to 50% more revenue in comparison to the bigger businesses.
With almost 74% of companies worldwide have admitted to hiring a wrong person for a position and then losing a substantial amount in the process, ‘bad hire’ is really bad news for your business. However, with Genesis Risk Mitigation Services (GRMS), you can avoid those losses through proper planning and positioning.
No Background Checks
The losses arising due to bad hiring can be easily avoided if you do what some of the best companies in India are already doing – Background Check Verification (BGV). This process, though still developing in India, should be a part of the hiring process of every firm worth its salt. According to Amey Kulkarni, Director, Genesis Risk Mitigation Services (GRMS), explains, “I meet so many clients that have successful companies but are not aware of such a service available in the market primary related to awareness and governance if we compare the governance of other countries, there are numerous background check laws that exist. An entire system has been created to ensure smooth day-to-day business transactions to assist both parties – the firm and the employee – by keeping a transparent process.”
Recognize the Looming Threat
Experts believe that bad hiring is a looming threat on the industries right now and if not taken seriously, this threat could cause a negative ripple effect, resulting in the following –
1. Business losses 2. Attrition of good employees3. Increase in hiring costs4. Re-training cost
According to several surveys carried out by GRMS, most of the firms show a bad case of BGV discrepancies. Even well-established companies face this issue. Once the bad hire’s training program is complete, it is not long before complaints start pouring in regarding his day-to-day operations. Usually, the management ignores these complaints, considering it to be a generic problem. However, with the passage of time, these grievances escalate and end up affecting the service and quality of the company.
Why Background Checks
As per GRMS, background checks reveal the previous professional accuracy of the hire and help the management in deciding whether to employ that person or not. BGV process can tell the firm whether a potential hire was sacked from the previous job, or left on his own, due to a management issue. The previous reporting managers, to whom GRMS talks regarding the new hire, can also reveal some facts that would reveal whether the new hire is going to be an asset or a burden.
Industry Discrepancies rates
As per the latest compilation of the first quarter of 2020, January-March, the discrepancy rates arising out of bad hiring stand at 13% negatives. Amey warns, “It is mammoth and alarming. This is in spite of the candidate knowing that a formal BGV process will be conducted, now just think about organizations where there is no background check process in place, you are attracting all the negatives towards your organization and waiting for a bomb to explore. We have frauds that range from fake employment, false remunerations, designation manipulations, a bad exit, severe criminal records, fake degrees, productivity issues, etc.”
Protect Your Organisation
If you want to avoid the negative impact of employee-related frauds and save your company’s hard-earned money, you need to run a pre-employment background check. In fact, choosing GRMS gives you an edge because this firm caters to entities across the spectrum – from MNCs to Startups! The GRMS does more than a lac of resume screenings in a year.
Their Vice President (Sales), Meherdeep Singh Dua, is the man to get in touch with. His phone number and email id are – +91 – 9819320490, firstname.lastname@example.org.