Have you ever hired someone you thought was going to be awesome, but who turned out to be awful? Ever had a gnawing feeling about an applicant, but couldn't put your finger on why until after you made the hire?

The answer could lie in the fact that 33% of job applications are falsified; up to 70% contain inaccuracies; and 20% of adults in the United States have criminal records. What can you do to fight fraud and have more confidence in your hires? Pre-employment screening is one option. A background check performed by an outside pre-employment search company can help you cut costs, save money, and avoid litigation.

Here are five reasons why your company should use pre-employment background screenings before hiring:

1. REDUCE TURNOVER

If you lose an employee during the first year after hiring, it can cost you plenty. The dollar amount varies depending upon who you ask, but it is substantial, ranging from 80% to 150% of salary. For example, if you paid the new hire $30,000, the cost to replace him/her could run from $24,000 to $45,000. These numbers may seem high, but factor in all the costs, such as temporary personnel to fill the void, lost production or sales, inability to deliver products on schedule, missing a project deadline, or upsetting or losing a customer, and you'll soon see how expenses rise.

A pre-employment background check can substantially reduce turnover by verifying that an applicant is all that he/she claims to be. Background checks will contact employers to confirm a former position, salary, dates of employment, and how the applicant handled the responsibilities indicated on the application. They can also check to see if an applicant has an outstanding warrant for his/her arrest, drug convictions, sexual harassment history, valid driver's license, or whether he/she has been convicted of a violent crime. Remember, you'll never meet a conartist who doesn't interview well.

2. LOWER DEPARTMENT COSTS

I've never met a human capital professional who enjoys contacting prior employers. It's time consuming, takes them away from other priorities, and is generally unproductive. Using a pre-employment service to screen applicants could cut the cost of doing the same check by 50% -- especially when you factor in the costs of getting a telephone number, making telephone calls, writing up reports, etc. A pre-employment background service frees up time and resources to focus on the areas where your expertise are needed most.

3. REDUCE SALARY COSTS

When it comes to salary, a pre-employment screening can arm you to negotiate more effectively. Do your professionals have the licenses they claim to have? Do you check to see if degrees or high school diplomas are valid? Many applicants embellish their education or purchase degrees online. Also, when negotiating salary, wouldn't it be smart to know that the salary listed on the application is $5,000 to $10,000 higher than what the applicant actually earned? Verifying the facts can save your company thousands of dollars and help you avoid major headaches.

4. PROVIDE A SAFER WORK ENVIRONMENT

Pre-employment background checks should be listed as a company benefit! Wouldn't your employees want to know they work in a safe environment? Certainly you've read about an employee who went "postal" or became violent. What is less publicized is the number of people who harass, steal, or sell drugs on the job. Many companies are even faced with gang issues in the work place. A pre-employment investigation can ensure a safer work environment by screening for high-risk hires.

5. PREVENT NEGLIGENT HIRING SUITS

The courts have found that an employer may be liable if an employee harms another employee on-the-job or even during off-hours. The theory behind a "negligent hiring" lawsuit is that the employer knew or should have known an employee was unfit upon hire -- that the employer should have made a "reasonable" effort to discover this. Pre-employment background screening assists employers by providing them with a documented "public knowledge" dossier on an employee. These background checks give employers the ammunition they need to fend off negligent hiring lawsuits. Furthermore, it helps the human capital professional make an informed, responsible decision about each prospective employee.

Joel Golberg is founder and President of Proactive Data Search/Aurico Reports. From the company's national headquarters in Arlington Heights, Illinois, Proactive Data Search/Aurico Reports provides pre-employment screening, drug screening, and business-to-business reports to companies nationwide, with a clientele ranging from fortune 100 companies to small businesses. The company's mission is to work as an extension of its clients' human resource offices, providing the report format, quality, and service that reduce the cost of company turnover, loss, and litigation.