Employee screening should be part of every business’s hiring process. Background and reference checks validate job applicants’ claims regarding their education, qualifications, and general trustworthiness. Having a pre-employment screening program in place makes better-informed hiring decisions and reduces the risks of making a bad hire.

Poorly conducted or inadequate employee screening, on the other hand, can have negative repercussions on your business, customers, and employees.

Here are three examples of what can happen if you don’t have a pre-employment screening process in place.

Your New Hire Isn’t Who They Say They Are

A person who lies about their qualifications is likely to do their job poorly. This, in turn, affects the morale and productivity of their co-worker. Further down the line, it can negatively affect your business’s efficiency and profitability.

In a survey of 1,000 U.S. adults conducted by Zippia, 30% of respondents admitted to exaggerating their resumes. Eighty percent of that number has never been caught.

Anyone can walk into an interview and say they are skilled, qualified, and perfect for the job, but how do you know for sure? The reliable way to ensure they’re truthful isn’t by simply trusting your gut instinct—it’s by conducting extensive background and reference checks.

This extra step in your talent acquisition process ensures that your new hire possesses the required qualifications. At the same time, it provides you with insights into their trustworthiness, honesty, and reliability.

Your New Hire is a Security Risk

According to a report by Varonis, an employee has access to almost 11 million files on average. These files can include your customers’ personal information, company trade secrets, and other sensitive data.

It’s imperative to protect these files, as data breaches—intentional or accidental—can result in lost trust and a damaged reputation, translating to business losses.

You can help ensure the privacy and security of your business information even at the talent acquisition stage by adequately vetting candidates. Reference checks and criminal record searches help weed out people likely to pose a security risk to your business.

Your Applicant Backs Out

Perhaps a job candidate has all the qualifications you’re looking for. Don’t risk losing them to your competitor because of a screening process that is frustrating, lengthy, and unnecessarily intrusive.

A study by CareerBuilder found that almost 2 out of 5 employers have lost a job candidate due to a negative experience during the background check process. Candidate screening that’s complicated, takes too long, or isn’t compliant with the National Association of Background Screeners (NAPBS) standards can cause an otherwise excellent potential hire to lose interest and jump ship to your competitor.

Incorporate Employee Screening into Your Hiring Process Now

Conducting extensive screening of job candidates prevents the stress, loss of resources, and risks of hiring an untrustworthy employee. At the same time, making sure your screening process is optimized to provide candidates with a positive experience can help you attract the right people to join your team.