Do Not Wait Until It Is Too Late
Aug 25, 2010 Matt Roesly
The process of running a background check is a very important element in hiring. You cannot afford to make poor hiring decisions when evaluating potential team members for your business. One of the most overlooked keys to success for most businesses is conducting effective background checks. A bad hire can mean the difference between success and failure - statistics show that more than 30% of small business failure is caused by some type of employee theft.
Every business tries to cut costs anywhere they can because their survival may depend on it. One of the biggest expenses for businesses is the investment it takes to find good employees and train them. In most cases, job applicants are completely honest and forthcoming about their past during the interview process. They want the job and don't want a misrepresentation costing them the opportunity. Some businesses decide not to conduct a complete background check or drug test to lower their hiring costs. It's worth reiterating that just one bad hire can be very costly and statistics show that more than 30% of small business failure is caused by some type of employee theft.
Too many employers forgo prescreening candidates through background checks but it can save time and keep costs down while ensuring smart hiring decisions. Prescreening can be simple. If you are looking to fill a position for a delivery person, first you need to verify they have a valid driver's license and check their driving record. There is no reason to spend resources conducting a full criminal background check prior to verifying a clean driving record and valid driver's license. This approach can be mirrored for nearly every type of employment.
Additionally, background checks can also improve your company's working environment! Why? Because a good feeling - the feeling of security and trust when you are working with honest employees - can be borne from knowing your employees better.
Business owners must also know how important it is to protect their legal liability with background checks. There are many businesses in which employees interact with customers and your company may be held liable if one of your employees does harm to a customer and it turns out that the employee had a history of similar issues. As an added bonus you may also find that your insurance provider offers a discount on coverage if you do background checks when hiring your employees.