As an employer, you will need to hire for an open position. You need to realize the riskiness of hiring and act accordingly because your bottom line will “take a hit” if you don’t. There are at least four good reasons to do a background check when hiring/on boarding for your company.
The first reason is background checks highlight criminal history. Depending upon the industry you are in, this benefit could be crucial. A background check can highlight convictions of the new employee and can alert you to unfit positions for the employee. If you are hiring for a transportation company and the employee’s background check reveals several DWIs, it automatically becomes a liability for you. If you go to court about this liability, you can face charges of “negligent hiring”. You can avoid this liability with a background check during on boarding.
The second reason is that background checks verify the education of the applicant/employee. People may stretch the truth on their resumes or exaggerate accomplishments and minimize failures. This can help in pre-employment screening and post-employment information gathering. For example, you may want to know if an employee is actually a certified CPA before hiring him/her. This is especially true in sensitive areas or areas where much damage can be done to the company. Information from background checks can help you decide where the employee/potential employee will work best, if at all.
A third reason is background checks ensure safety for employees and customers and should include a drug screening. Drug screening plays a part when reducing job injuries and worker’s compensation claims by as much as 50 percent. Drug screening protects fellow employees, customers, company resources, and operations. You should know if the employee/potential employee has a history of reckless behavior in the workplace.
A fourth reason is background checks protect the organization. Background checks are a “preemptive strike” to protect company resources, such as integrity and quality. The reputation of an organization takes time to earn but an instant to lose. If you have employees that have not been background checked, you risk your company’s reputation. Depending upon the industry, your reputation for quality products at a fair price could be put in jeopardy with “in the dark” hiring.
A company should take reasonable steps to keep the company safe and to maximize company profits. Since a basic background check cost less than $30, a background check will provide cheap insurance against poor hiring decisions. If you do not include background checks in your on boarding process, profits will eventually suffer.