3 Reasons to Run Pre-Employment Background Checks

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If you’re looking for work, you may be asked to submit a background check: an investigation by a prospective employer trying to learn more about your history, qualifications and experience. Many companies run basic background checks to verify potential employee’s identification and the information you submit on the application. Some companies require a more in-depth look, delving into criminal records, credit checks and interviewing people you know.

Companies utilize background checks in hiring processes to protect itself from future litigation charges related to negligence, safeguard its assets and to make current employees feel safe and secure in the workplace.

Here are 3 reasons why you should be conducting pre-employment background checks and the benefits of hiring an outside firm to do them.

Insight into Personalities

Running a pre-employment background check can give you a much better idea as to what type of person your applicant is. Though you cannot make hiring decisions based on a person’s criminal background or arrest records, you can make judgements as to whether your applicant will fit into your company’s culture. In addition, you can rule out candidates for certain positions if their background check provides red flags. For example, if a person was convicted of embezzlement and applies to be the CFO of a small organization, you have every right to disqualify them for that position.

Identity Verification

One of the key elements in running a background check is to verify an applicant’s personal information, educational level and employment history.

A recent report from CareerBuilder found that 58% of resumes include misleading or incorrect information such as falsified education details, inaccurate job titles, seniority levels, and employment dates. Verifying an applicant’s information is imperative to hiring trustworthy, honest employees. 

Reduce Turnover

Pre-employment background checks help screen employees who may stay longer because employers are able to make the right hire the first time. Background checks enable an employer to build a competent workforce, reduce the likelihood of hiring dishonest employees or employees with undesirable backgrounds, such as drug or alcohol problems.

 According to a survey conducted by Right Management Consultants, the replacement cost of a bad hire is 1 to 5 times the salary of the job in question. Consider the cost of recruiting and hiring, cost of training and of wasted wages and benefits a bad hire may bring. Also consider the management, administrative, and legal costs of a bad hire, plus the cost of damaged or stolen funds, materials, equipment, work environment, customer goodwill and employer reputation. Verifying applicant claims helps the employer make the right hire the first time and is clearly worth the investment in a thorough background check.

 Hire an Outside Firm

To get the most accurate and compliant pre-employment background checks on applicants, it’s best to hire an outside firm. There are many policies and regulations an employer must follow when conducting background checks, and the rules are constantly changing. Outside firms, such as SACS Consulting and Investigative Services, can provide employers with information that is relevant to the hiring process, ensuring the employer does not have knowledge that should not be used in hiring decisions. Hiring a firm to conduct background checks can save a company time and money and reduce the risk of a lawsuit by using disclosed information.

SACS Consulting and Investigative Services are experts on confidential pre-employment background checks. Call us today at 330-255-1101 to discuss options for your company.

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