Mitigating Risk with New Hires

November 23, 2015

Post By:


Sharon E. Mann, CPA, CGMA
SCACPA members since 1992

You may say okay, I know there could be some risk with new hires or you may think there is none at all.  After all, surely your clients are checking out the people they hire.   I’m often surprised to find out that employers are not checking or do not know the federal guidelines. 
For example, are they verifying that the person is eligible to work in the United States?  Hopefully, the employer is checking the Employees I-9 in the E-Verify system to make sure that they are eligible.  This free Internet-based system can be accessed at the Department of Labor, Licensing and Regulation’s website in the immigrant worker compliance section.


We have found that employers usually screen their employees before hiring to either reduce the risk of theft, especially in the retail arena, to reduce the risk of harm to fellow employees or customers or to make sure they have the proper credentials for the job they are to perform.  They do this in various ways either by checking prior employment, verifying education, checking for criminal records, drug screening, verifying credentials, driving records, etc.  An interesting statistic from our review for our clients is that when we run searches for criminal records we find a hit ratio of 14 percent enterprise wide. 

Industries such as retail, manufacturing and staffing run higher at 18 percent while white collar positions, such as insurance agents, run much lower.  This is information you may want to share with your clients to ensure they are mitigating their risk when they are looking to bring on a new employee. 


Sharon Mann is the chief financial officer for General Information Services, Inc. in Chapin. She has served on the SCACPA board since 2007 and currently serves as chair. She previously served on the Legislative, Advocacy & Regulatory Committee, the Finance Committee and the Audit Committee.

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