How Important Is Background Checking For Employment?

How Important Is Background Checking For Employment?

There are many reasons why an employer should perform a background check on an applicant before hiring them. These pre-employment checks are not only crucial for keeping employees safe, but they also strengthen the employer-employee relationship. The goal of a background check is not to catch an applicant in a lie but to gain a comprehensive picture of the applicant. This information can help employers determine whether they will fit into the company’s culture and work well with co-workers.

Background checks are labor intensive

Employment background checks can be labor-intensive due to the large number of records that are required. Often, inaccurate information or incomplete forms will delay the application. In addition, record sources are often paper-based and require manual searching.

This can add a few weeks to the process. Sometimes, an applicant’s name may be in more than one state and require multiple searches. Many employers use background checking to protect themselves from bad hires. Nearly one-in-four employment background reports contain a criminal record.

Therefore, if you are hiring someone who will be in contact with the public or handle sensitive data, you should perform a background check before making the final decision. There are several ways to conduct a background check, including sifting through national criminal records, the Sex Offender Public Registry, and criminal databases in 43 states.

Employment background checks also include a copy of a person’s credit report. One of the three major credit reporting agencies prepares these credit reports. They have the same information that a standard credit report would include but do not include a credit score or date of birth.

They are expensive

Background checks for employment are an excellent way to ensure that your company hires the right people for the job. Doing so can cut down on the cost of employee attrition. According to the US Department of Labor, the cost of making the wrong hire can be up to 30% of the employee’s annual salary.

While background checks for employment are essential for your company’s security, the costs can quickly add up, particularly if hiring more than one candidate. A simple criminal check will cost around $20; a comprehensive executive check will run upwards of $300.

As these investigations take some time to complete, the cost can add up quickly, mainly if you must conduct several interviews for one position. A thorough background check can help employers make a more informed decision about a candidate.

It can also help them find out about the candidate’s credit history, which can be necessary if the position requires significant financial authority. Although background checks for employment are expensive, they can also help your organization promote a safer environment by exposing candidates with criminal records. For example, a background check can show whether a candidate has been convicted of a misdemeanor or is a registered sex offender.

They protect employers from liability

Background checks for employment are a crucial tool for protecting employers from liability. Without this step, an employer may be liable for the actions of an employee and may even face a penalty in the event the employee is convicted of a crime.

However, there are legal restrictions on how far background checks can go, and employers should consult an attorney for guidance. The law requires employers to exercise reasonable care in selecting employees. Employers who fail to perform background checks may be liable for the actions of employees who turn violent or threaten others in the workplace.

This legal theory is called negligent hiring. In most cases, negligent hiring claims involve employees who attack other employees or cause injury to the public. While conducting background checks is not a requirement for every company, it is essential to protect the employer from liability and ensure the safety of employees and the public.

Employers should ensure that background checks safeguard their company’s reputation and assets. They should consult their legal counsel and background screening partner to accomplish this.