Despite the fact that background checks are becoming a more common part of the hiring process, some business owners still don’t see the benefits of conducting background checks when expanding their staff. Instead, they view these screenings as unnecessary and expensive.
But background checks can benefit your company in many ways, including preventing significant liability costs, which is a tremendous advantage in a business climate characterized by high risk. There are several ways in which background checks can reduce liability, such as:
- Flagging false credentials: Hiring an incompetent and unqualified employee can be a costly business mistake. In some instances, it can also represent a violation of regulations. For instance, healthcare workers often require minimum credentials and training and cannot have certain types of crimes on their criminal record. In this instance, hiring the wrong person could result in fines, lawsuits, higher insurance premiums, and a tremendous amount of damage to your business’s reputation. A background check can verify that any candidate has the right credentials, keeping your employees and customers safe and not jeopardizing your company’s reputation.
- Preventing fraud and theft: Criminal screening is a component of any standard employment background check. Unknowingly hiring someone with a past violation for theft or fraud could put your company’s assets at risk. A background check will flag anyone who could potentially steal your funds or products, help others commit cybercrimes, or enter false information into your databases to allow them to defraud your business. For a small business, this type of theft could put a huge dent in your profits, meaning it’s worth the risk. Conducting background checks will give you peace of mind that your team is made up of individuals with high levels of integrity.
- Reducing legal risks: Hiring the wrong person can cause issues with compliance or create an unsafe workplace, which opens you up to legal suits. Unfortunately, these legal cases are often long and drawn out, leaving the owner with huge legal bills, and in some instances, they must still pay damages to the plaintiff if the case is lost. Background checks can minimize this risk by keeping your workplace safe and compliant with all applicable laws and regulations. It can prevent you from hiring someone with a history of violence who may pose a threat to the safety of yourself, your business, your staff, and your customers.
- Keeping your data safe: The risk of cybercrime is a huge problem for companies of all sizes. And in many cases, cybercriminal organizations may ‘plant’ an employee at an organization in order to get access to sensitive information that can then be used for any number of crimes, including ransomware attacks and personal identity theft. Unfortunately, in these instances, it’s up to the company to prove that they did all they could to protect the personal information of customers and employees. Conducting background checks is a part of any employer completing their due diligence in hiring the best people and keeping data safe and secure.
- Hiring compliance: The Fair Credit Reporting Act (FCRA) is just one of many federal laws employers must follow. This act provides guidelines for compliance when hiring new employees and reassigning current employees. It applies to criminal records, employment history verification, driving records, education history, credit checks, and drug testing. Failing to follow any of the requirements of FCRA can result in penalties and fines. When doing background checks, working with a third-party vendor who knows FCRA regulations and can also follow applicable state laws to keep your company out of hot water is ideal. These experts can ensure your hiring processes don’t open your business up to unnecessary liability.
- Reducing turnover: When you consistently use background checks while hiring, you will hire better-quality candidates. Over the long run, this leads to happier employees with fewer grievances or concerns about their working environment. And this benefit often means you have less turnover because you can keep your team members, including their knowledge and experience. This benefit can also save you a ton of money in hiring, onboarding, and training new employees, especially considering the positive outcomes over the years.
The modern hiring process is complex, and it can seem daunting, especially when you receive a ton of applications or resumes. However, background checks provide a great way to narrow the candidate pool and leave you with high-quality options. And this is one of the most effective ways to reduce liability and risk for your business. For more information about background checks, contact USAFact today!
USAFact Global Screening Services provides comprehensive background and criminal checks for employers that comply with federal and local laws. By helping you eliminate high-risk applicants through tailored solutions, USAFact enables you to create a safe and productive work environment and a foundation for future success.