Performing a background check on potential employees can help protect your business. These checks can reduce the risks of criminal activity and property damage in the workplace. In addition, they help protect your reputation as an employer and help you identify qualified applicants. As an employer, you must conduct due diligence before hiring any new employee.
Reduce the risk of criminal activity
A background check can help reduce the risk of hiring a bad employee. Many employers, especially those who deal with vulnerable populations, seek additional information before hiring someone. By performing a background check, employers can ensure that the people they hire are safe and will not harm anyone else. These checks also prevent the company from hiring an employee with a criminal past.
Research has shown that a background check can reduce the risk of sexual assaults and other forms of criminal activity.
Protect the company’s reputation
Background checks are a smart way to safeguard your company’s reputation. A bad hire can ruin your company’s reputation within days, and a background check can help you avoid this by uncovering any red flags. For example, a background check can reveal any posts on social media that would damage a company’s reputation. This data can help the human resources department make better hiring decisions.
Having a great reputation is a must for a successful business. It can take years to establish and maintain a solid reputation, but it can be destroyed overnight by hiring the wrong people. Background checks protect your company’s reputation and business from increasing employee management costs. For example, hiring someone with a criminal record can increase insurance premiums, employee turnover, and work-related claims.
Identify qualified applicants
Background checks can help employers determine the qualifications of applicants. Often, they are used to check a candidate’s background for criminal convictions or other issues. These checks can also identify potential problems, such as drug abuse or fraudulent employment. They can also help prevent employee turnover. Some background checks include criminal and educational records.
Credit history: Some jobs require financial responsibility and literacy skills, and a detailed credit analysis may be necessary to assess a candidate’s financial responsibility. For example, a credit report may reveal whether a candidate has a history of late payments or if they’ve been in bankruptcy. Other background checks involve checking motor vehicle records, whether the candidate has had any accidents or if they’ve received speeding tickets or DUIs.
Protect the company from liability issues
Background checks are a vital part of employee screening processes. They can help employers mitigate liability arising from negligent hiring, which could cost a company as much as $500,000. A negligent hiring claim can devastate a company and negatively impact management and employee morale. To mitigate the risk of liability, employers should perform criminal background checks on all potential employees.
While it is unlikely that prospective employees will divulge their history, background checks are necessary to protect a business from liability. If an employee engages in illegal activity or is a frequent thief, for example, a negligent hiring practice can result in a large payout to the employer. In addition to liability, background checks also protect a company’s reputation from bad information.