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The ROI of Background Screening

The ROI of Background Screening

HR Management http://www.hrmreport.com/article/The-ROI-of-Background-Screening/

Points of Interest:

  • The net annual Return On Investment for background screening is over 900%.
  • There are scarce few business expenses that can generate the type of ROI that background screening can.
  • According to the US Small Business Administration, for every dollar an employer invests in employment screening, the return on investment ranges from $5-16, resulting from improved productivity, reduced absenteeism, lower turnover – and decreased employer liability.
  • The Saratoga Institute estimates the cost of turnover at 150% of annual compensation for salaried workers.
  • Dr. Bradford Smart suggests that the cost for senior executive turnover is as high as 2,400% in his book Topgrading.
  • The United States Department of Commerce reports that 30% of all business failures result from theft or embezzlement.

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