In 2017, Amazon made a strategic decision to acquire Whole Foods, a move that promised to expand the e-commerce giant’s reach into the grocery space. But what looked good on paper quickly turned into a major cultural clash because the acquiring corporation neglected human due diligence and employee background screening of existing human capital. Amazon’s efficiency-driven, tech-centric culture thereby collided with Whole Foods’ more idealistic, people-focused approach and caused hindrance in ensuring a seamless deal transition.
The result was a suboptimal merger that failed to live up to its potential. Stories of Whole Foods’ processes being streamlined to make them more “efficient” had a negative impact on employee morale, and the cultures of the two companies never quite meshed.
This scenario illustrates the importance of human due diligence in M&A deals. A thorough understanding of the cultures, values, and attitudes of the companies involved is essential for a successful merger or acquisition. Without it, the resulting clash of cultures can lead to suboptimal results, lost productivity, and even employee turnover. As a business owner, it’s essential to invest time and resources into human due diligence, because at the end of the day, it could be the deciding factor between a successful acquisition and a costly mistake.
The Role of Pre-Employment Background Screening in Human Due Diligence
Pre-employment background screening is a crucial step in the human due diligence process. It involves conducting background checks, verifying qualifications, and assessing a candidate’s suitability for a particular role. With the rise in fraud and dishonesty in the workplace, pre-employment screening has become integral in ensuring that prospective employees are trustworthy and capable of carrying out their duties responsibly.
The Importance of Pre-Employment Background Screening
Pre-employment vetting is a proactive approach that organizations take to protect themselves from potential risks associated with hiring an employee. With the right screening process, companies can minimize turnover rates, prevent legal issues, and reduce the risks of reputational damage. A comprehensive background check process can also help identify candidates who may need to gain the necessary qualifications or experience and consequently prevent poor quality hires.
Furthermore, background verification is a necessary practice for certain industries, such as banking, healthcare, and education, where employees have access to sensitive information. It is an essential step for ensuring that individuals with criminal backgrounds, drug or alcohol abuse problems, or other negative behaviors are not hired for such positions.
Benefits of Pre-Employment background Screening
There are numerous benefits of pre-employment background investigation for an organization, including:
- Reducing turnover rates – Pre-employment background screening can help identify candidates who might not be suitable for the role, thereby reducing costly mistakes and improving employee retention.
- Legal compliance – Organizations need to comply with various laws and regulations when hiring employees. Conducting background checks helps to eliminate legal risks associated with hiring unsuitable candidates.
- Improved security – Pre-employment background screening helps to identify individuals with criminal backgrounds or other risks, thereby improving organization security and preventing internal fraud.
Consequences of Avoiding Pre-Employment Background Screening
Pre-employment background screening is an essential part of the hiring process that helps employers make informed decisions about potential candidates. However, some employers choose to avoid the process altogether, either because of a lack of resources or simply because they believe that it is unnecessary. This can have far-reaching consequences not only for the company but also for its employees and customers. Let’s explore five key consequences of avoiding pre-employment screening.
Increased Risk of Hiring Fraudulent Candidates
One of the biggest risks of avoiding pre-employment background screening is that the company may end up hiring fraudulent candidates. Without proper screening, it becomes easier for candidates to falsify their credentials, such as their education or work history, or even provide fake references. These fraudulent candidates may seem promising, but they can cause major problems for the company later on, such as damage to the company’s reputation, financial losses, or even legal issues.
Decreased Employee Productivity
When a company hires the wrong person for the job, it can lead to decreased productivity. This is because the employee may not have the necessary skills or qualifications for the position, may not fit in with the company culture, or may cause disruptions in the workplace. The result is a decrease in overall productivity, which can be detrimental to the company’s success.
Increased Employee Turnover
When employees are not vetted properly, they may not be a good fit for the company, which can lead to increased turnover. This can be costly and time-consuming for the company, as it must continually hire and train new employees to replace those who leave. Additionally, high turnover rates can negatively impact the company’s culture and morale, which can further decrease productivity.
Increased Risk of Workplace Violence
Another consequence of avoiding pre-employment background screening is an increased risk of workplace violence. This is because some individuals with a history of violence or other criminal activity may slip through the cracks if they are not thoroughly screened. This can create a dangerous situation for other employees and customers and can also result in legal and financial consequences for the company.
Decreased Customer Satisfaction
Avoiding pre-employment background screening can result in decreased customer satisfaction. This is because employees who are not properly vetted may not have the necessary skills or personality traits to interact effectively with customers. This can lead to customer complaints, negative online reviews, and a decrease in the overall business.
How to Avoid Consequences Of Avoiding Pre Employment Background Screening?
Avoiding pre-employment screening can have serious consequences for any business. At CRI Group™, we understand the importance of conducting thorough background checks to avoid potential risks and liabilities. Our certified BS7858 pre-employment background screening service, EmploySmart™, ensures a safe work environment by tailoring specific screening packages to meet the requirements of each position within your company. Whether you need local or international background checks, we’ve got you covered. Here’s how our employment screening services can help you avoid the consequences of avoiding pre-employment screening:
Experienced Integrity Due Diligence Team
Our team of experts specializes in domestic and international screening, and has extensive experience conducting background checks across various industries. Our team is well-equipped to handle any screening needs, providing you with the necessary insights to make informed hiring decisions.
Online Management and Quick Turnaround Times
We understand the importance of time and efficiency in the hiring process, which is why we offer online management and quick turnaround times. This allows for a seamless process, providing you with the necessary information in a timely manner.
Our extensive quality controls and numerous checks ensure that you receive high-quality searches that you can trust. We strive for accuracy and attention to detail in all of our services.
Direct Access to Senior Staff Members
Our flat organizational structure allows you to have direct access to senior staff members throughout the due diligence process. This ensures that any questions or concerns are addressed promptly and with the necessary expertise.
Global Network and Multi-Lingual Teams
Our solutions are easily customizable and tailored to your specific concerns and risk areas, allowing us to address any decision-making across your business. With our extensive global network and multi-lingual teams, we can conduct assignments on thousands of subjects in over 80 countries.
Our solutions include due diligence, employee pre and post-background screening, employment history verification, business intelligence, and compliance. We facilitate decision-making across all areas and departments of your business, providing you with the necessary information to make informed hiring decisions.
Our Pre Employment Background Screening Services
EmploySmart™ provides a comprehensive suite of pre-employment screening services and background checks to ensure that you are making informed hiring decisions. Our experienced team works as a trusted partner to HR and recruiting managers of corporations and institutions across the world.
Our services include:
- Address Verification (Physical Verification): We verify the candidate’s address to ensure that it is accurate and up-to-date.
- Identity Verification: We verify the candidate’s identity to ensure that they are who they say they are.
- Previous Employment Verification: We verify the candidate’s previous employment history to ensure that their work experience matches their resume.
- Education & Credential Verification: We verify the candidate’s educational credentials and certifications to ensure that they meet the qualifications for the position.
- Local Language Media Check: We conduct a media check in the candidate’s local language to uncover any negative press or publicity.
- Credit Verification & Financial History (where publicly available): We check the candidate’s credit and financial history to assess their financial stability.
- Compliance & Regulatory Check: We check the candidate’s compliance with industry regulations and company policies.
- Civil Litigation Record Check: We check the candidate’s litigation record to assess their legal history.
- Bankruptcy Record Check: We check the candidate’s bankruptcy record to assess their financial stability.
- International Criminal Record Check: We conduct a criminal record check in the candidate’s home country and other countries where they have lived or worked.
- Integrity Due Diligence: We conduct due diligence to identify any potential integrity issues, such as conflicts of interest, political affiliations, and more.
With CRI Group™ ‘s EmploySmart™, you can customize your screening package to meet the specific needs of each position within your company. Our team of more than 50 full-time analysts is spread across Europe, Middle East, Asia, North and South America and fully equipped with the local knowledge to serve your needs globally.
Let us help you make informed hiring decisions and mitigate the risks associated with negligent hiring.