Unfortunately, the answer is yes! According to the “2006 ACFE Report to the Nation on Occupational Fraud and Abuse,” about 87% of criminals caught had no prior criminal history.

An employee’s personal situation and qualifications do not necessarily remain the same throughout the tenure of their employment. Over time, changes in circumstance can make some people vulnerable to criminal behavior or substance abuse. Criminal activity aside, screening employees whose position descriptions have changed or who are in consideration for a promotion can reveal that they no longer have the education, certification, or even skills necessary for the new job.

Reducing your organizations vulnerability to fraud, workplace violence, or other potentially damaging scenarios requires a systematic approach to hiring and management that promotes a safe and ethical workplace. The costs for not developing a comprehensive plan are staggering:

• The average fraud scheme in a small business causes $127,500 in losses. The average scheme in a large company costs $97,000.
• Employee theft costs nearly 1% of total annual sales.
• Substance abuse saps productivity by up to $640 per employee.
• The average "bad hire" costs businesses approximately $40,000 in severance pay, training, wasted human resource time, search firm fees, and productivity.

The following are a few options to consider when creating a standardized system for your screening process:

• Review company systems, procedures, and policies: Identify areas that leave your organization vulnerable to theft and fraud. Identify a system of checks and balances for financial transactions and inventory/supply distribution.
• Review and update position descriptions: Identify education, certifications, and skills for the position in question. Identify security requirements, policies, and procedures for the position.
• Implement random drug testing.
• Require background checks for promotions and position changes.
• Conduct annual audits.
• Set up an anonymous hotline for reporting abuse and employee behavior.

Over time, the costs associated with implementing these types of procedures are far less expensive than the recovery costs associated with fraud, theft, and poor employee placement.