COLD FACTS: PREVENTING LOSS AND MITIGATING RISK

• Employee turnover costs the U.S. economy $713B (Source: hrmreport.com)

• Average U.S. annual turnover rate is 38.7%. (Source: Bureau of Labor Statistics)
• Cost of turnover is at least 25% of annual salary + benefits or $13,000+ on average across all levels. (Source: Employment Policy Foundation)
• Considering hiring, training, productivity loss and vacancy, some estimate the cost of turnover at about 150% of annual salary. (Source: Saratoga Institute)
• 45% of all resumes contain at least one major fabrication. (Source: SHRM)
• 21% of all applicants are dropped from hiring pools after reference checks. (Source: Workforce.com)
• 34% of all forms contain outright lies about experience, education and ability to perform essential functions to the job. (Source: Wall Street Journal)
• As many as 30% of job seekers exaggerate their accomplishments, and about 10% "seriously misrepresent" their backgrounds. (Source: The Complete Reference Checking Book, by Edward C. Adler)
• One in six workers has a drug problem. (Source: "Don't Hire a Crook", Dennis DeMay and James R. Flowers, 1999.)

• Occupational Fraud (theft, corruption and fraudulent reporting) cost U.S. companies 6% of revenues. (Association of Certified Fraud Examiners)
• 30% of all business failures are caused by employee theft or embezzlement. (Source: American Management Association and US Chamber of Commerce)
• Employee theft accounts for 60%-70% of all retail losses. (National Retail Merchants Association)
• 72% of business shrinkage is due to employee theft. (NY Times)
• Internal employee theft is 15 times greater than external theft. (U.S. Department of Commerce)

• Workplace Violence costs U.S. companies $36B per year. (Source: Workplace Violence Research Institute)
• 10% of all job applicants have a criminal history. (Screening Index, 2009.)
• Employers lose over 70% of negligent hiring cases with an average settlement of over $1.6MM. (Liability Consultants, Inc.)
• Workplace violence is the second leading cause of workplace death in the U.S. (National Institute for Occupational Safety and Health Fact Sheet, 1997)

• In the absence of a strategic screening program, employers incur an average of $3,111 of liability.
• The average liability is reduced to $300 per hire with the implementation of a robust screening program, designed and delivered by experts.
• The return on investment for background screening programs is in excess of 900%.
  (ROI Source: http://www.hrmreport.com/article/The-ROI-of-Background-Screening/)