Hiring Mistakes Cost Companies

A recent survey by Occupational Health and Safety outlines the trouble hiring mistakes can afford small to mid size companies. Three out of four employers say they've hired one employee they wish they hadn't. Twelve percent of those respondents say that hiring mistake alone cost them about $10,000!

"The businesses we talk to say they are seeing more individuals lying on their résumés or exaggerating their skill sets in order to get scarce jobs. In a down economy, small business owners must be especially vigilant when they bring on new employees," says SurePayroll President Michael Alter.

Most mistakes are being made by negligent or poor hiring decisions. Skipping crucial steps along the way during the hiring process cost these business big:

• "We hired an employee without doing a background check, and then I caught her stealing."
• "We rely mainly on a strong 'gut feeling' to determine if the candidate seems qualified and references check out."
• "Our hiring errors have been largely due to time constraints--we needed to fill a position fast and quickly chose what appeared to be the best applicant from resumes received."

"For small business owners, the psychological and economic strain of making a hiring mistake can be a massive burden on the company," Alter says. "What's more, these kinds of hiring mistakes can be reduced or avoided altogether by implementing proper precautionary measures. Investing in pre-employment screening services is worth the small upfront investment."

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Embezzlement on the Rise in Nashville

Small businesses in Nashville, TN are making it easy for employees to steal. Nashville police said they have investigated more embezzlement charges than ever before and blame the economic crisis for the rise in white collar crime. People are more willing than ever to risk everything to earn a few more dollars, and small businesses are the perfect target.

"When there's a lack of oversight, there's room for fraud," said Lieutenant Mickey Garner with the Metro police Fraud Unit. One employee began writing small checks with to herself from a small orthopedics group. She kept writing checks, and since she never got caught she ended up embezzling more than $230,000.

Small business often think that pre-employment checks are not worth the cost. Some businesses only hire one or two people a year and like to trust their gut. The simplest check could save you thousands of dollars. Most criminals are repeat offenders and will strike again given the opportunity.

Another "Somebody ought to write the checks, somebody work the accounts, that way you have two people. Maybe they can check out each other and make sure one's not doing what they shouldn't be," says Garner.

Most people who are caught embezzling are sentenced to probation and rarely forced to pay back the money they stole.

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