A crucial step in the hiring process is running a background check. They help reduce the risk of theft, fraud, and workplace violence.
Neglecting to conduct background checks can be extremely dangerous for businesses. It can affect team morale, productivity, customer relationships, and company growth.
But what do background checks consist of?
Protects Your Business and Reputation
Background checks are conducted by many agencies that search county court and federal records, credit histories, and more. Some of these searches go further back than others. The type of job a candidate applies for determines the level of detail that goes into a background check. For example, financial positions may require a deeper look into credit history to unearth bankruptcies, civil judgments, and tax liens. Other positions, such as those that involve driving or handling money, may require a motor vehicle record check to verify the driver’s license status and validity.
Bad hires can cost a company thousands of dollars, not just for the initial monetary investment in recruiting and hiring but also for lost productivity and customer loss. The advantages of conducting a background check far outweigh the expense of averting crimes like theft, fraud, and embezzlement. It keeps your business’s reputation intact while ensuring the safety of current and future employees and customers.
Saves You Money
Considering the cost of a single bad hire (including lost productivity, training time, increased turnover, and loss of customers), running background checks is one of the best investments a company can make. A background check can reveal information that a candidate did not disclose on their resume or job application, which may include previous criminal convictions, credit history, and motor vehicle records.
Some states have laws that limit what kind of information employers can access, so make sure you know the regulations in your area. Medical and genetic information, for instance, is illegal to request, while the depth of a criminal record check depends on the position: It might not be necessary for cashier positions but might be essential for roles with access to sensitive or confidential data.
In addition, a background check can also uncover fraudulent activities such as lying on a job application. It is much more common than you might think, with candidates even fabricating educational or work experience documents.
Reduces Risk of Fraud
Performing a background check helps you reduce the risk of fraud. Many people lie on resumes and applications to get a job. It can be costly for your business as it could result in financial loss, customer loss, or a damaged reputation.
Background checks can uncover false claims, such as fabricated degrees or experience. Additionally, they can reveal criminal activity, such as theft or violence, that may have occurred in the past. Background checks can also be used to verify previous addresses, dates of employment, and if a candidate has valid motor vehicle records.
Background checks can also be used to verify national identity documents, which is critical for companies with international talent or dealing with sensitive information. It is crucial in countries where fraud and forgery are common. Moreover, a background check can also help you comply with laws at the local or federal level that require businesses to perform certain checks.
It Helps You Hire the Right Person
Many organizations conduct extensive background checks for their employees and applicants. Depending on the industry, these searches typically include criminal records, social security number and address history verification, education/employment verification, motor vehicle and driving records, and credit reports.
The outcomes of a background check assist employers in choosing the finest candidate for the job and help them ensure they are selecting someone who won’t endanger clients, coworkers, or corporate assets. It is significant for companies in high-risk industries or positions requiring sensitive information access.
In addition, a background check can help you avoid hiring someone who is dishonest or who may be hiding information. According to a CareerBuilder survey, one bad hire can cost an employer $15,000. A background check helps you make a fully informed decision and protects your organization from costly lawsuits. You must take all reasonable precautions to minimize your risk and ensure you are selecting the best employees for your company, given the uncertainty surrounding the present COVID-19 outbreak.