When you’re on the stage of setting up and growing your business, your hands are usually full of a long list of tasks. In the end, you are less likely to fulfill what could have been a very critical step in the employment process: pre-screening.
Conducting pre-employment background checks is one of the essential HR processes, but because it’s usually complex, and not everyone can afford to hire an in-house team, many business owners take CVs and resumes at face value. It’s a big mistake for one very simple but powerful reason:
A BAD APPLE IS A LIABILITY.
We repeat: an incompetent, dishonest worker is a huge liability to the company.
According to US Department of Labor, a bad hire can cost you around 30 percent of the person’s wages for the first year. These costs may be direct or indirect, including absenteeism, poor or loss productivity, and customer loss due to dissatisfaction.
A liability doesn’t choose a business, but it can significantly hurt start-ups, whether you’re in tech or any other industry. He can:
1. Promote disengagement – The same Forbes article above pointed out how one person can influence others to become disengaged or demotivated. One, his job then becomes the implied responsibility of others, making the rest of the team members prone to stress and burnout.
Furthermore, the bad employee can be charismatic enough to incite insubordination and lack of cooperation. He or she can instil conflict within the team, forcing the others to lose the energy to work or even quit.
This disengagement can potentially lose you the bad apple, but it could also mean losing your key employees.
2. Destroy your company’s image – There are so many ways a bad employee can ruin your reputation not only among your customers but also the industry and even the government. Rude employees can compel customers to leave or file a complaint against you. Hiring people with a criminal background gives the impression you tolerate such behaviour. While you can kick them out of the team, it also reflects another issue, which is you didn’t perform a thorough background check prior to their employment.
It may sound cliché, but any business needs only one issue to destroy its reputation, which can take so long to rebuild. Even big companies take at least a year to manage its bad brand after a crisis.
IT CAN BE MORE COMPLEX
Normally, when you have a bad employee, the best course of action is to remove him. But the truth is it’s so much easier said than done. In Indonesia, for example, labour laws can be very complex. Not only that, the law seems to discourage termination that you need to compensate the employee accordingly.
In other words, if you want to avoid the consequences and a whole lot of trouble, do your due diligence and conduct a pre-employment background check.
Leave It to Cekindo
Hiring people to work in your Indonesian company can be challenging. Besides conducting pre-employment checks, you should also be aware of the laws that govern hiring and employment.
By working with Cekindo, you work with top-notch business consultants that specialize in HR recruitment and setup. We not only know the rules – we understand it
Our able team also perform a comprehensive due diligence on your behalf, scrutinizing all information pertaining to your employee within a week.
Save your business from a potential headache. Work with us today.
