Who Are You Really Hiring? 10 Shocking HR Statistics
Sometimes words can't do justice to the importance of pre-employment screening. The statistics below describe, in further detail, the kinds of workplace risks that pre-employment screening will help you avoid.
HR Statistics: False Information
1. 53% of all job applications contain inaccurate information.
2. 49% of the 3,100 hiring managers surveyed had caught a job applicant fabricating some part of his/her resume.
3. 34% of all application forms contain outright lies about experience, education, and ability to perform essential functions on the job.
4. 9% of job applicants falsely claimed they had a college degree, listed false employers, or identified jobs that didn't exist.
5. 11% of job applicants misrepresented why they left a former employer.
HR Statistics: Bad Hires
6. Negligent hiring cases have had verdicts costing up to $40 million.
7. The average settlement of a negligent hiring lawsuit is nearly $1 million.
8. Employers have lost more than 79% of negligent hiring cases.
9. It costs $7,000 to replace a salaried employee, $10,000 to replace a mid-level employee, and $40,000 to replace a senior executive.
10. The U.S. Department of Labor estimates that the average cost of a bad hiring decision can equal 30% of the first year’s potential earnings.
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These 13 principles provide a comprehensive framework outlined by the United States Department of Labor for conducting an effective personnel assessment program.
*Sources: CareerBuilder.com Survey (2008), Gurtin vs. Nurse Connection, et. Al. (2002), Human Resources Management (2008), Recruiting Times, Society of Human Resources Management (2003), Two Wrongs May Mean No Rights, by Barbara Kat Repa, Nolo.com, (2001), U.S. Department of Labor, Wall Street Journal (2003).