
The U.S. Department of Labor estimates that the average cost of a bad hiring decision can equal 30% of the individual’s first year potential earnings. While the 30% figure from the U.S. Department of Labor (originally cited around 2003) remains a foundational benchmark, updated estimates in 2026 suggest the cost of a bad hire is often much higher, frequently ranging from 50% to over 200% of the employee’s annual salary, depending on the seniority of the role and the duration of the employment.
By identifying prior high-risk behavior, background checks will help to reduce the risk of hiring someone who could pose a threat to your business, either physically or economically. Employee screening will help to facilitate informed hiring decisions, less employee turnover, and reduced company risk to litigation.
Alpha CHECKPOINT offers several packages that will assist you in verifying/assessing a potential employee’s background.