6 Important Reasons for Employee Background Checks

When a new business is being created or a company is expanding, new employees are often required. When a person comes for an interview, they may have already completed an application form. They may look and speak well. Perhaps the interviewer is impressed by the individual and has a good feeling about them.

Most companies conduct background checks before they employ someone. If the application form and interview were good, however, it may be tempting to leave this out. After all, the check will cost money and delay the whole process. But is it really wise to omit this? The answer is a resounding ‘no!’ and we’ll now discover six important reasons.

1.   Employers Can Be Liable For Their Staff

It may be that someone applies to work for a risk-sensitive job. Perhaps it is connected to the military or a political party. If an employee becomes involved in illegal activities or serious misconduct, the employer could be sued for negligence.

Whilst background checks cost money, the sum pales into insignificance compared to million-dollar lawsuits. They are rarely resolved quickly, and frequently provide bad publicity for the companies. Interestingly, a company would be in a better legal position if it had conducted a background check on the employee before they were taken on.

The internet can make the actual process a lot easier for employers. The professional advice by MicroBilt.com points out that companies are looking online for fingerprint and criminal background checks, as well as business credentialing. They also want information as to how long the process will take.

2.   Penalties Can Be Imposed For Non-Compliance

Many industries are externally regulated in order to protect the public. One example is the field of insurance. Background checks can be part of the compliance process that businesses have to adhere to.  If a company is investigated or audited, it could become liable to penalties if there was a breach discovered. In the worst-case scenario, this could result in the business being no longer allowed to operate.

3.   The Accuracy Of The Application Can Be Assessed

It’s essential for employers to be sure that the candidate will be safe and effective doing their job. Research has found that over half of people lie on their application forms. It’s a clear temptation for those who are desperate for the money, but don’t have the qualifications or skills required. Background checks enable companies to gain confirmation from previous employers. They can also confirm attendance at educational establishments, and the qualifications gained.

4.   Omissions And Errors Can Be Discovered

Perhaps an applicant has a criminal history relating to a different region that doesn’t keep records. Alternatively, someone may not have revealed that they have a bad credit history, or are currently massively in debt. A person’s extreme political beliefs and activities may not have been disclosed either. These factors could all pose a serious risk to the company.

Needless to say, any employer will want to have a higher quality applicant. If the process of background checks has been set in place, this should be a deterrent for some people with secrets to hide.

5.   The Companies’ Employees Can Be Protected

If a business takes on a person with a criminal history, the other staff could be vulnerable to disruptive or violent behavior.  When it comes to data breaches within companies, almost half of them are instigated by the employees themselves. Staff always need to know they can trust their colleagues, and not be at risk of security breaches. It would also be a fearful thing to discover there was a terrorist within the organization.

6.   The Quality Of The Business Can Be Preserved

As we have already mentioned, background checks can reveal peoples’ credit histories and criminal records. This can be key considering most of the stock stolen from shops disappears at the hands of the employees.

No manager wants their company to fall prey to fraud. Whilst it can take years for a business to gain a good reputation, it can be lost in a moment. People value integrity brands. Studies show that 70% of potential new customers will go elsewhere if a company has suffered a previous data breach.

As we have now learned, background checks can complete the job application process. The time and money spent on organizing them should be seen as an investment into the company. They protect employers from crime and its legal implications, and also the employees themselves. Hidden facts can be disclosed, and information be verified. This can help ensure that businesses take on the most genuine and suitable staff.

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