When it comes to the background check, never assume. Part II

Kevin Bachman

Another company is in the news because a former employee allegedly found it easier to take clients’ money instead of investing it as promised.

Firm pays $2M for bad hire

Man accused of rape, embezzlement

http://www.bostonherald.com/business/general/view.bg?articleid=1174955

This employee allegedly had over $400,000 in debts before he was hired, a fact easily identified within seconds after running a credit report, which costs about the same as lunch at Applebee’s.

And a more comprehensive background check, one that includes education and employment verifications, a criminal records search, a motor vehicle report plus a credit check? Roughly a single day’s pay. If the new hire is a financial advisor handling millions of dollars of client assets, a background check probably costs the same as one hour of their salary.

We have seen more stories about embezzlement these days. My colleague blogged on another example just last week. It’s saddening but not surprising to see companies get burned because they do not background checks. And while there is FAR more awareness of the need to conduct employment screening compared to 10 years ago, many organizations still have a ways to go in terms of reducing their risk and evaluating potential damage.

Consider this company. It’s not only the out of pocket cost to investors this financial services firm has to contend with. There’s the hidden expense as well. Current and potential investors who may leave track marks sprinting in the other direction. When all is said and done, this will cost far more than $2 million dollars. It’s too bad so much money could have been saved by spending so little in advance.

Kevin Bachman
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Kevin Bachman

Senior Vice President of Operations at EmployeeScreenIQ
Kevin is responsible for creating strategy and setting long term goals to manage and optimize organizational workflow. Kevin ensures the company exceeds performance benchmarks by designing and implementing a robust set of analytics and metrics. As a member of the executive committee, he helps shape corporate strategy and sets the direction of key client initiatives. With 13 years industry experience, Kevin is a member of the National Association of Professional Background Screeners (NAPBS), previously serving on the best practices committee and co-chairing the Litigation Avoidance sub-committee.
Kevin Bachman
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