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resolved to the customer's satisfactionResolved Hireright — Costs us thousands
resolved to the customer's satisfaction
How switching to HireRight costs my company millions of dollars!
I work for a Fortune 30 company. About a year ago, my company switched to using HireRight for background checks. The reason for the change was that HireRight was cheaper and this would be a big savings for the company.
I estimate this change is costing us millions. We employ lots of engineers and those people are not so easy to find. It takes us a while to find a good candidate and now when we do, it takes up to 2 – 3 months to bring them on.
Basically the way HireRight works is everyone is guilty until proven innocent. Almost every report comes back with discrepancy and unable to verify back on it. Then it’s up to the Job candidate to provide proof. Only instead of simply calling the HR department, they have to go back and dig up W2 from 10 years ago. A candidate can’t remember if they started on the 14th or 15th of the month on a job 10 years ago, Discrepancy in big red letters.
So you say, who cares, so the candidate has to do some work and it takes a little while longer before they start. We now lose a significant number of people we spent the time interviewing and recruiting because they are insulted by HireRight, give up on the process or decide to take another position they need a job and don’t want to wait 2 months.
How does this cost my company money? Before HireRight, we use to Hire people out right and have a reputable honest company provide background checks, which took about 48 hours. Now the only way to hire someone quickly is to use contactors. So instead of hiring a Software Engineer for 90K, we pay a contracting company 95$ per hour, which is double.
But then it gets worse, after a contractor is here for 6 months, we can hire them with no fee. Most of the time we end up paying the contract rate for 8 months, because it take 2 months to get all the red tape of HireRight done. So that’s even more money we have to pay.
The other big cost is turn over. I had amazing software engineer who we offered to hire as soon as we could. After 6 months we offered him a job and he accepted, but then he had to go through the HireRight process. He showed me his report which had red discrepancy for everything. The job he had as a contractor working for us was marked with a big red flag discrepancy. I went to HR with him and I asked them. How is this acceptable? You see the guy working here at his desk every day and we pay a background checking company that tells us that it is not true. He also went to his college website and was able to verify his degree in just seconds, also marked with discrepancy. He told me it was easier to go to another job than to dig up tax returns from 5 years ago. So now I have to train someone else and start all over again.
In summary, you may save 30$ per background check using HireRight, but it will cost you hundreds of thousands in turn over and paying contractors because you can no longer hire people.