Given the transient nature of many highly-skilled workers, it is a sound business practice to conduct criminal state background checks on potential new hires, business associates, and young people looking to raise startup capital. If a wealthy person is thinking about investing in the “next big thing,” then it would behoove that person to complete some exhaustive due diligence. Many young people with innovative ideas lack the financial wherewithal to wisely invest and control a substantial amount of cash. Credit checks, criminal background investigations and many other investigations should be done prior to signing a check for the initial investment.
Some of the red flags that might signal that this person might not be the best person to hire or that this group of people seeking startup capital might not be the most reliable people to invest with are low credit scores, charge-offs, a long history of partial or late payments along with prolonged and documented cases of financial malfeasance. A comprehensive background check into different databases as well as personal interviews will reveal this type of behavior.
Given this information combined with the number of highly skilled people who have been out of work for months if not years, then it makes sense for employers to conduct pre-employment background checks on their potential new hires. As the number of new jobs decreases while the number of job seekers increases exponentially, then one unfortunate byproduct of this worldwide economic recession is the “desperate job seeker.” Checking the assertions that a person makes on his or her resume is a critical part of the hiring process; unfortunately, there are far too many people who will lie about their accomplishments. While it is a tedious process, cross checking one’s work history with one’s reported addresses is an ideal way to check for different inaccuracies.
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