5 Reasons Why Your Business Should Conduct a Pre-Employment Background Check

Hiring managers have a responsibility to the company they work for to protect the company and its current employees from potential risks. Most applicants are honest about the information they provide, but in some cases, they may hide the truth. An employee background investigation will ensure that all of the information that is submitted by a potential hire is correct. 

Why Does Your Business Need a Pre-Employment Background Check?

A pre-employment background check is a review of a potential hire’s commercial, criminal, and financial information. It can include education, previous employment, credit history, and criminal background. It helps hiring managers determine if an applicant will be a good fit for a certain position based on their qualifications and skills. 

Unfortunately, applicants don’t always give truthful answers on their applications. A Career Builder survey found that 58 percent of hiring managers found false claims on resumes that were submitted by candidates. One-third of managers reviewed resumes that had false education credentials. This indicates that all employers are at risk for future terminations or liability as the costs of not conducting pre-employment background checks can leave the organization at risk.

Benefits of a Pre-Employment Background Check

Pre-employment background checks have many benefits for both employers and employees. Here are a few: 


Provides a Criminal History Background

A pre-employment background check will reveal any criminal history of an applicant, from minor charges to more serious crimes. For example, hiring for a bank teller position requires the applicant not have a history of fraud or theft. 


Ensures Proper Educational Background

Many jobs require that the candidate have a certain level of education completed. Employment education verifications are necessary to ensure the applicant is being truthful about where they went to school and if they graduated. For example, a junior accounting position requires that the employee has a degree in accounting so that must be checked before hiring to make sure the employee is competent. Checking education history ensures that you’re getting the most qualified candidates. 


Avoids Liability

Hiring for certain positions may require a specific skill set. If a company hires a bus driver without running a background check, and the driver gets into an accident while driving under the influence, the company can be held liable if the driver has a previous record. Since the company did not run a background check, it was negligible. 


Improves Safety in the Workplace

Pre-employment background checks also ensure that all employees have a safe workplace. They show that the employer has performed a diligent search and tried its best to keep the organization safe from violence, threats, and harassment. Background checks can give indications of issues that may become a cause for the termination of a potential employee. 


Validates the Decision

Hiring managers want to make sure that they are hiring the very best candidate for the position but sometimes, employee screening processes can be subject to mistakes and errors.  Performing a pre-employment background check is another way to make sure the right hiring decision was made. 


According to the EEOC (Equal Employment Opportunity Commission), anytime an employer uses an applicant’s background, they must comply with federal laws that protect applicants and employees from discrimination. Employers should be upfront with how they conduct their pre-employment background checks and what’s included.

The Cost of Not Performing a Background Check

When you hire an employee without doing a thorough background check, there are many costs that are involved for the organization, including: 

  • Lower productivity when an employee needs to be terminated
  • Loss of productivity as another new employee learns the job
  • Costs of having to go through the hiring process again to find another employee

Background checks reduce turnover and improve productivity by providing crucial information about each candidate. The type of background check allowed by law depends on the type of employment. A comprehensive background check should be performed on each applicant as part of the screening process. A company would be prudent to conduct one on each potential hire to reduce risk. Companies that specialize in pre-employment background checks can assist in the process. 

Pre-employment background checks are valuable for nearly every industry and company size, whether you own a small business, hire seasonal workers, or run a multi-national organization. This due diligence can save you time, money, and stress. Contact us today to learn more about the investigations and screenings we offer. 

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