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COMMERCIAL INVESTIGATIONS LLC
One result and goal of an effective background screening policy is to reduce turnover. Increasing employee retention can be
accomplished by improving the overall quality of new hires and by better matching the right candidate to the required skill set. Effective
Background Investigations can accomplish both.
According to The U.S. Small Business Administration, for every dollar an employer invests in employment screening, the return on
investment ranges from $5 to $16, resulting in improved productivity, reduced absenteeism, lower turnover and decreased employer
liability.
The average American worker can now be expected to change their job or career 10 times between the age of 18 and 34. According
to Greg Smith, the author of Here Today Here Tomorrow: Transforming your Workforce from High-Turnover to High-Retention, “each
year U.S. businesses spend billions of dollars recruiting and replacing their employees. Individually, it cost between $2,000 and
$11,000 to replace an hourly employee, and upwards of $40,000 to replace a manager.” Others estimate the total cost to be as much
as 1.5 times the amount of an employee’s annual salary.
Turnover rates vary greatly depending on the industry. Annual turnover rates for hourly workers are over 50 percent in hotel chains
and more than 200 percent for fast food chains.
One reason employees leave an employer is because there is a mismatch between the job and the person. One challenge for
employers is finding the right people not only for the job but for their company. It is important to use all available means to make sure a
candidate and their skill set are as they appear to be. Relying on just an interview and a resume or only applicant supplied information
provides a limited view of a candidate. Background investigations can provide a means to verify applicant supplied information and
allow employers to hire based on objective data.
Over 50 percent of employers have increased their use of screening programs in the past five years. Background investigations can
help screen out undesirables from applying and eventually being hired for a position they are not qualified for.
The Bureau of Labor Statistics estimates an annual average turnover rate of over 38 percent for the approximately 140 million U.S.
workers resulting in over 53 million positions turned over annually. The total loss to the U.S. economy can be calculated conservatively
at over 700 billion annually.
According to the Society for Human Resource Managment (SHRM) on average it takes 5.3 weeks to fill a vacant position. SHRM also
estimates average hiring costs at $2,546 for hourly employees and $6,943 for salaried employees.
The HR Management Report article The ROI of Background Screening states:
“Upon examination, it becomes evident that background screening is not only necessary as part of a best practices approach to hiring,
but, it also delivers real value to the company’s bottom line. There are scarce few business expenses that can generate the type of
ROI that background screening can. Fewer still that are as necessary to preserve the safety of employees while protecting the public
image of your company.” (www.hrmreport.com)
Contact CI today to learn more about how you can improve your bottom line by reducing turnover and improving the quality of your
work force through Background Investigations.
accomplished by improving the overall quality of new hires and by better matching the right candidate to the required skill set. Effective
Background Investigations can accomplish both.
According to The U.S. Small Business Administration, for every dollar an employer invests in employment screening, the return on
investment ranges from $5 to $16, resulting in improved productivity, reduced absenteeism, lower turnover and decreased employer
liability.
The average American worker can now be expected to change their job or career 10 times between the age of 18 and 34. According
to Greg Smith, the author of Here Today Here Tomorrow: Transforming your Workforce from High-Turnover to High-Retention, “each
year U.S. businesses spend billions of dollars recruiting and replacing their employees. Individually, it cost between $2,000 and
$11,000 to replace an hourly employee, and upwards of $40,000 to replace a manager.” Others estimate the total cost to be as much
as 1.5 times the amount of an employee’s annual salary.
Turnover rates vary greatly depending on the industry. Annual turnover rates for hourly workers are over 50 percent in hotel chains
and more than 200 percent for fast food chains.
One reason employees leave an employer is because there is a mismatch between the job and the person. One challenge for
employers is finding the right people not only for the job but for their company. It is important to use all available means to make sure a
candidate and their skill set are as they appear to be. Relying on just an interview and a resume or only applicant supplied information
provides a limited view of a candidate. Background investigations can provide a means to verify applicant supplied information and
allow employers to hire based on objective data.
Over 50 percent of employers have increased their use of screening programs in the past five years. Background investigations can
help screen out undesirables from applying and eventually being hired for a position they are not qualified for.
The Bureau of Labor Statistics estimates an annual average turnover rate of over 38 percent for the approximately 140 million U.S.
workers resulting in over 53 million positions turned over annually. The total loss to the U.S. economy can be calculated conservatively
at over 700 billion annually.
According to the Society for Human Resource Managment (SHRM) on average it takes 5.3 weeks to fill a vacant position. SHRM also
estimates average hiring costs at $2,546 for hourly employees and $6,943 for salaried employees.
The HR Management Report article The ROI of Background Screening states:
“Upon examination, it becomes evident that background screening is not only necessary as part of a best practices approach to hiring,
but, it also delivers real value to the company’s bottom line. There are scarce few business expenses that can generate the type of
ROI that background screening can. Fewer still that are as necessary to preserve the safety of employees while protecting the public
image of your company.” (www.hrmreport.com)
Contact CI today to learn more about how you can improve your bottom line by reducing turnover and improving the quality of your
work force through Background Investigations.
News Release
FOR IMMEDIATE RELEASE
FOR IMMEDIATE RELEASE
Contact:
Michelle Pyan, Commercial Investigations LLC President
518-271-7546
michellepyan@commercialinvestigationsllc.com
Michelle Pyan, Commercial Investigations LLC President
518-271-7546
michellepyan@commercialinvestigationsllc.com
| MINIMIZE TURNOVER IN 2008: YOUR BACKGROUND SCREENING DOLLAR AT WORK |
COMMERCIAL INVESTIGATIONS LLC (CI), a full service licensed private investigative agency, offers thorough
and affordable employment BACKGROUND INVESTIGATIONS. CI provides accurate, timely, cost effective and
fully compliant reports supported by high standards of customer service. CI also offers consulting services to
assist organizations with reviewing and auditing their BACKGROUND INVESTIGATIONS processes for compliance,
effectiveness and efficiency. CI provides the PROACTIVE TRUTHTM regarding applicants, thereby reducing
turnover and limiting exposure to civil liability.
and affordable employment BACKGROUND INVESTIGATIONS. CI provides accurate, timely, cost effective and
fully compliant reports supported by high standards of customer service. CI also offers consulting services to
assist organizations with reviewing and auditing their BACKGROUND INVESTIGATIONS processes for compliance,
effectiveness and efficiency. CI provides the PROACTIVE TRUTHTM regarding applicants, thereby reducing
turnover and limiting exposure to civil liability.
DATE: DECEMBER 2007