You're hiring employees to perform a specific job within your business, and it might not seem necessary to learn more about them as a person. After all, their family life, financial history, and general background won't always seem like any of your business. In reality, background checks can reveal a lot about a person and their potential impact on your business in the future. While you might not prioritize background checks when hiring new staff, that might change when you learn their importance.
Legal Requirements
A company might choose to run a background check on a new employee because they are legally required to do so. Some employees must have certifications to work in various sectors, and a background check can be an effective way to ensure they have them rather than taking their word for it.
If employees are working around children or vulnerable members of society, background checks can also be legally necessary to ensure they don't have any criminal convictions requiring them to keep their distance from specific groups of people. Failure to run a background check might result in liability if that employee is caught doing something they are not legally allowed to do or caught being somewhere they're not legally allowed to be.
Protect Your Business' Reputation
When a resume for a potential employee crosses your desk, you might find that their credentials, skills, and qualifications are everything you want and more. You might be eager to hire them on the spot, thinking they'll be the perfect fit for the job.
They indeed might have all the skills your business could benefit from, but that doesn't mean something in their past won't cast a shadow over your business and decimate its reputation. A background check can expose telling information about things people have done in their past, details the applicant might not necessarily reveal in their job application. By being aware of them, you can make an informed hiring decision and potentially prevent costly PR nightmares.
Keep Other Employees Safe
Most people you hire to work in your business will likely conduct themselves professionally, perform the job they're hired to do, and help you make money. However, that's not the case for everyone. Some employees might be volatile with short tempers, and you might only learn this information once you hire them. By then, you've potentially put your other employees at risk.
Background checks might be able to stop you from hiring people who might be a danger to other employees. For example, a police record for assault charges might be a telling sign that someone has unresolved anger problems and lacks control.
Prevent Fraud
Identity theft is on the rise. While many criminals steal identities to obtain money unlawfully, some also steal identities to start a new life and gain new employment and opportunities their own identity might not afford them. If you perform a background check before hiring someone, you might stand a chance of detecting problematic information about someone's past, worrying you enough to pass over them and hire a more trusted potential employee instead.
Ensure Financial Responsibility
Hiring employees to manage your business's money can be nerve-wracking. You're not only trusting them to see your business accounts but also to manage the funds within them. Someone can say they have excellent money management skills, but their history might say otherwise.
Background checks can reveal prospective employees' credit history and whether they've had any bank liens or bankruptcies. While personal financial history doesn't always reflect someone's abilities to manage business accounts, it might make you question whether they're the right person for the job.
Identify Resume Inaccuracies
It's not uncommon for people to lie on their resumes. In fact, one study found that 78% of job seekers misrepresented or thought about misrepresenting themselves on job applications and resumes to obtain employment. Don't just take people's word for it that they have the qualifications and credentials you require. Instead, perform a background check so you can know for sure.
Performing background checks on prospective new employees might appear to be a waste of time and money when they seem like good people and have impressive resumes. However, there's no knowing what people are hiding. The next time you're getting ready to hire someone new, include a background check as one of the necessary employment steps.
