Using Background Checks as a Part of the Hiring Process

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Have you ever taken the time to consider what could happen to your business if you hired the wrong person?  You could wind up hiring an employee who steals from you, other employees, or your customers.  The employee may even turn out to be violent and pose as a threat to others.  Hiring the wrong employee can be detrimental to your business.

According to the Association of Certified Fraud Examiners, the average organization loses more than $9 per day, per employee, and 6% of its annual revenue to fraud and abuse.  That is why it is extremely important to make the right hiring decision by using background checks as part of your qualifying process.  Background checks not only provide verification but also are a cost effective and safe way to screen candidates.  Background checks allow an employer to determine if the candidate is appropriate for the job by evaluating a candidate’s qualifications and skills, and also help identify potential hiring risks for security and safety reasons.

Here are five reasons as to why performing background checks are important:

1. Uncover problems- Background checks uncover issues regarding an applicant’s history.  Specifically they provide information regarding criminal records, experience, education, and training.  Most companies deal with the handling of sensitive information.  This may range from social security numbers, drivers license information, and credit card information.  Background checks are a great way to assure clients and customer’s personal information is being handled properly.
   
   
2. Reduce legal and employment problems- According to an article published by The Society of Human Resource Managers (SHRM), negligent hiring is “the failure of the employer to investigate a job applicant’s work experience, character, criminal history and other relevant data prior to the hiring of the employee”.  Conducting background checks on potential employees will help eliminate legal and employment problems such as negligent hiring liability, absenteeism, and discipline problems, and will positively impact your company’s profitability.
   
   
3. Better hires- Background checks give the employer more confidence that the candidate posses the appropriate skills, attitude, and experience that match that of the organization.  Interviewing and personal and professional references are simply not enough to determine a person’s full character.  Candidates are likely to give names of those who will give them a good reference. Background checks are a great way to pick up where references stop and provide you with the most accurate information regarding the candidate.
   
   
4. Discover fraudulent claims- Background checks help screen out dishonest employees.  There are a large number of applicants who make false claims on their resumes.  According to a study by SHRM, over 53% of individuals lie about their resume in some way. Research from HireRight goes on to state that 30% of resumes show altered employment dates, 40% have inflated salary claims, and 30% have inaccurate job descriptions.  Background checks gather information from multiple sources and will provide you with a clearer understanding of the candidate’s qualifications.
   
   
5. Employer Success- Background checks are a great way to gauge the ways that a potential employer can add value to your company.  Your business will be more successful if you conduct background checks because you are ensuring that you are hiring an employee that is reliable and trustworthy.  Conducting background checks will also save your company wasted benefits, training and development costs.

It is important to remember that past patterns of behavior serve as a predictor of future job performance and conduct.  Providing background checks as part of the hiring process allows employers to screen out potential problem employees and screen in ones with the appropriate skills and attitudes that the job entails.  Information provided by background checks will enable employers to build a competent workforce and reduce the chances of hiring dishonest employees.

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