Hiring new employees can feel like a game of chance. The glimmering resumes, polished interviews, and glowing references may seem convincing, but how do you truly know who you’re bringing into your business? That’s where background checks come in.
If you’re not conducting them yet, you’re leaving your business vulnerable to unnecessary risks — from jeopardizing your finances to damaging your hard-earned reputation. But that’s not all. Here’s more about how to conduct background checks and why they’re absolutely essential for protecting your company.
How to Conduct a Background Check
What exactly is the process to conduct a background check? Luckily, it doesn’t have to be difficult or time-consuming. Here’s a breakdown of what you need to know.
First things first, get consent. Don’t skip this step. It’s essential (and legally required in most places) to get written permission from the candidate before doing a background check. Make sure they understand what will be checked and why it’s part of your hiring process.
Then you’ll need to choose a reputable background check provider, so partner with a reliable agency or platform that specializes in employment screenings. Providers of the best background checks offer customizable options to fit your business’s specific needs, whether you’re screening for criminal records, professional licenses, or even credit history.
Importantly, you’ll need to decide what to screen. Not all roles require the same level of scrutiny. For example:
- Criminal Records: Ideal for positions dealing with money, sensitive information, or vulnerable populations.
- Employment History: Verify the timeline and roles on their resume to ensure there are no misleading claims.
- Education Validation: Important for roles where specific credentials or degrees are non-negotiable.
- Driving Records: A must if the role involves operating company vehicles.
Customizing your screening process ensures you balance risk with fairness.
It’s also crucial to have an internal process ready so you can review the results objectively. When you receive the report, handle the information responsibly and objectively. Look out for deal-breakers that are directly relevant to the role but avoid snap judgments that aren’t aligned with fair and legal hiring practices.
Ultimately, a thorough, transparent background check process not only protects your business but also earns the trust of the talent you hire.
So why are background checks a tool every business owner should have in their arsenal?
Protecting Your Profitability
Imagine hiring someone for an accounting role, only to later discover they have a history of fraud. Not conducting a background check could cost you not just money but precious time resolving issues you might have avoided in the first place. Hiring mistakes are costly. According to the U.S. Department of Labor, the average cost of a bad hire is 30% of their annual earnings. Background checks help lower this risk by ensuring you’re hiring honest and qualified candidates who will add to your bottom line rather than detract from it.
Safeguarding Your Brand
Your employees aren’t just workers; they’re ambassadors of your brand. What they do, both on and off the clock, reflects on your company. Without a background check, you might unwittingly bring someone into your business who jeopardizes the trust of your customers or clients. Now, imagine the PR nightmare of finding out a high-ranking hire has a troubling legal or ethical history that could’ve been spotted early in the hiring process.
Even businesses with compassionate “second chance” hiring practices (rehabilitating those with criminal records) still conduct transparent, role-appropriate screenings to safeguard both their brand and their team culture.
Ensuring a Safer Workplace
Beyond protecting profits and reputation, background checks are about providing a safe environment for your employees and clients. For example, screening for violent criminal records can prevent potential workplace incidents. Similarly, verifying professional licenses guards against hiring unqualified individuals in roles where expertise is critical, such as healthcare providers or financial advisors.
You don’t want any lingering questions about the trustworthiness of your team. Screening can help create a culture of security and reassurance. Isn’t that what every employer wants?
Compliance and Due Diligence
Certain industries, such as healthcare, finance, transportation, and childcare, have strict regulatory compliance requirements for hiring employees. Failing to conduct background checks can lead to hefty fines, lawsuits, and even losing your business license. Being diligent about background checks means you’re not only mitigating risks but also staying firmly within the boundaries of the law.
Reducing Turnover
When you hire the right people the first time, you reduce the chances of turnover (and the headaches that come with it). Background checks give you the peace of mind that the candidates you’re bringing on aren’t just a good fit on paper but are genuinely ready and qualified for the roles they’re taking on. Employees who are the right fit tend to stay longer, saving you the costs of repeated recruitment and training.
Building Trust
Think about it — your business is built on trust. That includes trust between you and your clients, trust among your team, and trust between you and your new hires. Conducting background checks is a clear sign that you take every part of your business seriously. It demonstrates to both employees and clients that you’re committed to maintaining high standards of professionalism and integrity.
Could you run your business without background checks? Well, yes, of course you can. But at what cost? Whether it’s protecting your profits, maintaining a spotless brand reputation, or confidently building a safe and trustworthy work environment, a robust screening process helps you steer clear of potential disasters.
You should really think of background checks as an investment in your business’s future — and the peace of mind they provide is priceless. If you’re ready to level up your hiring game and enhance your decision-making process, don’t wait. Businesses rarely regret introducing background check processes and policies, because it brings a level of business security with it that is incredibly valuable, whatever line of work you’re in.
