Over the last 25 years, Infortal has reported the following statistics for:
|A. FULL TIME EMPLOYEES (across all industries):|
| || || || |
Employment history discrepancies
| ||25 to 35%|
TOTAL OF ALL NEGATIVES FOUND:
| ||48% to 58%|
| || || || |
| || || || |
|B. TEMPORARY EMPLOYEES: Discrepancies || ||70%|
| || || || |
|C. EXECUTIVES: Discrepancies || ||20%|
*Driving convictions & serious violations
Employee Turnover is Expensive
- The average cost of the problem hire is 1.5 times the person's annual salary.
- Damage to morale is a significant additional cost because it is frustrating and time consuming to train new employees who don't work out.
- On average, in U.S. businesses, at least half of all new hires "don't work out" (Fortune Magazine).
Many national surveys indicate that lying on resumes appear to be on the rise.
- 49% of hiring managers reported they found candidates lying or misrepresenting information on their resume (Source: CareerBuilder.com, June 2008).
- According to this survey, the most common falsifications include:
- Embellished responsibilities 38 %
- Skill set 18 %
- Dates of employment 12 %
- Academic degree 10 %
- Companies worked for 7 %
- Job title 5 %
- From 1992 to 2001, the average cost to settle a negligent hiring lawsuit was roughly one million dollars. The highest award in the United States for a negligent hiring case was $26.5 million (source: Human Resource Management).
- The cost of a bad hiring decision can be as much as 25 percent of a new employee's salary.
- When you add to this the time and costs of recruiting, hiring, and training a new person, the mistakes made by new employees, and the cost of customers lost, it becomes a tremendous drain on a company's resources (source: Department of Labor, 2006).
Workplace Violence & Substance Abuse
- Over the past 5 years, 2004-08, an average of 564 work-related homicides occurred each year in the United States (source: Bureau of Labor Statistics).
- In 2008, a total of 526 workplace homicides occurred, or 10 percent of all fatal work injuries (source: Bureau of Labor Statistics).
- Some 2 million American workers are victims of workplace violence each year (source: OSHA of Department of Labor)
- Nearly 5% of 7.1 million private industry businesses had an incident of workplace violence within 12 months (source: Survey of Workplace Violence Prevention, 2005, Bureau of Labor Statistics). Of those statistics, 21% reported that the incident affected the fear level of their employees and 21% indicated that the incident affected their employees’ morale.
- Over 70% of workplaces do not have a formal program or policy that addressed workplace violence (source: Survey of Workplace Violence Prevention, 2005, Bureau of Labor Statistics).
- Assaults and violent acts represent 16% of all fatal work injuries that occurred in 2008 (total number of assaults & violent acts: 5,214) (source: US Bureau of Labor Statistics)
- 74.8% of the 17.2 million illicit drug users aged 18 or older in 2005 were employed either full or part time. (source: OSHA, Department of Labor)
- Alcohol costs American businesses an estimated $134 billion in productivity losses, primarily due to missed work. (source: Department of Labor)
- $994 billion attributed to employees stealing from their employers (source: ACFE, Institute for Corporate Productivity, Jack Heyes International, Inc)
- The typical organization loses an estimated 5 % of annual revenues to fraud. Applied to the estimated 2009 Gross World Product, this figure translates to a potential total fraud loss of more than $2.9 trillion among organizations, despite increased emphasis on anti-fraud controls and recent legislation to combat fraud. (source: ACFE)
- A study of over 1,000 merchants, financial institution executives and 5,000 consumers showed:
- For every $100 dollars in fraudulent transactions the retailer will bear the cost of around $310. In 2009, the study showed $191 billion in estimated losses from fraud (source: Study by LexisNexis Risk Solutions in conjunction with Javelin Strategy & Research, 2009)
- The study predicts retailers will lose around $139 billion as a result of identity theft, lost or stolen merchandise and lost interest and fees from charge backs in 2009. (source: Study by LexisNexis Risk Solutions in conjunction with Javelin Strategy & Research, 2009)
- The duration of an average Fraud situation lasts a median 18 months before being detected (source: Report to the Nations on Occupational Fraud and Abuse, 2010, ACFE, survey of 106 nations)
- The median loss caused by occupational fraud cases was $160,000 (source: Report to the Nations on Occupational Fraud and Abuse, 2010, ACFE, survey of 106 nations)
Nearly one quarter of fraud involves losses of at least $1 million. (source: Report to the Nations on Occupational Fraud and Abuse, 2010, ACFE, survey of 106 nations)