Criminal Background Checks Reduce the Cost of Turnover

The Employment Policy Foundation estimates the hidden costs of turnover.

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Every employer experiences turnover. But some turnovers can be prevented by weeding out risky hires. For example, when an employer has to terminate an employee for theft, criminal behavior or other activities that harm the corporation, those hires can be reduced by doing criminal background checks. But let’s look at what the hidden cost of turnover is.

These numbers were reported in Graphic Arts Monthly (Feb. 2, 2005).

When factoring in:

  • Separation costs
  • Interview time
  • Paperwork
  • Relocation
  • Unemployment
  • Training
  • Vacancy Costs
  • Lost productivity
  • Advertising
But NOT including:

  • Theft
  • Replacement costs
  • Litigation
  • Decreased moral
  • Tarnished reputation

the AVERAGE cost of separations is estimated at…$15,000 per employee!!

When you factor that cost for multiple employees, it increases dramatically.

  • For 7 employees, the annualized cost is of turnover, or separation is $100,000.
  • For 15 employees, the annualized cost is over $200,000.
  • For 100 employees or more, the annual costs reach $1.5 MILLION!!

At, we’ve been reducing risky hires for 20 years.

We do millions of criminal background searches and pre-employment drug screenings per year.

We’re ready to help YOU!