Background Checks on Employees: Why They're So Essential (and how to avoid the hassle!)

The numbers are sobering: The Economist has noted that unsuccessful hiring is the, “Single biggest problem in business today,” while the Harvard Business Review found that as much as 80% of employee turnover can be traced to bad hiring decisions. When you factor in that the wrong hire costs an organization two-and-a-half times the employee’s annual salary, you know it’s time to take a look at where things are going wrong.

Pre-Employment Background Checks

Background screening is quickly becoming a prerequisite to hiring for many businesses who want to mitigate their risks. Conducting pre-employment background checks is an easy and effective method for doing so. It makes good business sense to research the stated capabilities and work history of all prospective employees, as well as current staff, executive-level and management, temporary, and contract personnel. Here are 10 reasons it pays to run background checks on every potential job candidate:

• To gain insight into a candidate’s personal history, including criminal records, that might indicate a poor fit with your organization.
• You’ll create an overall safer work environment by making sure a potential hire has a clean record.
• If your industry requires security clearances, it pays to know ahead of time if something will prevent a new hire from gaining one.
• You can decrease your chances of incurring expensive legal problems down the road by avoiding lawsuits due to past issues such as sexual harassment.
• Employee resume claims such as degrees and job responsibilities can be verified.
• Companies looking to hire employees who will handle financial matters, or actual cash, can gain valuable insight into an applicant’s financial responsibility.
• Your company can avoid negative publicity due to employee misbehavior or criminal conduct.
• Turnovers are reduced and savings are increased.
• Compliance with state and federal regulations is made easier.
• You can verify an applicant is who he or she says they are.

Hassle-Free Background Checks

The good news is that if you’re considering using a temporary staffing firm to beef up your current workforce, that firm can help save you time and money, and eliminate unnecessary headaches that are often associated with recruiting, by performing comprehensive background checks. In order to protect their clients, staffing firms routinely perform background checks on potential hires. In addition to identity checks and employment reference checks, temporary staffing firms may also perform:

• Educational and credential checks
• Criminal history checks
• Credit history checks
• Motor vehicle reports

As an employer, it’s more important than ever to exercise your due diligence when making new hires. Make sure you truly have the right person for the job by running background checks on all potential job candidates. By doing so, you’ll not only protect your business, but you’ll also enjoy greater peace of mind.