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With thorough pre employment screening, you can hire the right applicant from the start. On average, in U.S. businesses, at least half of all new hires don't work out and it costs:

  $7,000 to replace a salaried employee
  $10,000 to replace a mid-level employee
  $40,000 to replace a senior executive

When the direct and indirect costs associated with employee separation, replacement, and training are accurately compiled, it is not uncommon for even medium-sized companies to lose several million dollars a year resulting from employee turnover.

Recruiting
Utilizing a recruiting firm or placing a help wanted ad can be relatively expensive. Managers must spend their valuable time developing and placing ads, fielding phone calls, etc...

Hiring
Managers must spend time reviewing applicant resumes, interviewing candidates, and processing paperwork for new hires.

Training
Training materials are a monetary cost to contend with. However, the time investment in the training process is more significant. Experienced employees can't operate at full capacity while training a new employee.

Lost productivity
When an employee leaves, the gap left by that employee has several effects on a company's overall productivity. When any department's staff is reduced by one, other employees will have to assume the duties of that missing staff member.
This can lead to increased overtime pay. It could also have an adverse affect on a staff's overall morale, possibly leading to further turnover.

Lost sales
In a sales-related position, employee turnover can have a dramatic effect on a store's profitability. Obviously, a missing salesperson cannot generate any sales. Furthermore, sales are often lost when customers become frustrated dealing with a new employee or when new employees neglect to up-sell the company's products/services.

Customer service
Lack of service during times when staffing is low can decrease customer satisfaction. Moreover, Companies can easily lose clients due to the inexperience of a new employee.

Insurance Premiums
Unemployment claims can lead to significant increases in unemployment insurance premiums.

Pre employment screening can help companies decrease turnover. Employee background checks, employment verifications, and reference checks can all be valuable screening tools in hiring employees that will not quit or require termination shortly after hiring.