5 Reasons To Run A Background Check

  • By Mark Ridgeway
  • 19 Jul, 2017
request criminal background check
As a business owner or HR professional you've been there: you’re at the tail end of a particularly difficult hiring process and you’ve finally found the right candidate for the job. It’s easy to say, “Phew! Glad that’s over,” and move forward with finalizing the details.

But before you do, you should really consider ordering a background check on your candidate of choice. Integrating a background check policy can really benefit and protect your company. Here are 5 reasons you should always run a background check:

1. Stronger hires = Saving Money

Don’t just rely on your “gut feeling.” The more you know about the candidate, the better you will be able to assess if he/she is a fit for the position and for your company. Talent acquisition is a struggle in nearly every industry, so make sure that you’re not cheating yourself out of any of the available information before extending an offer.

It’s important to point out that better hires often means less turnover. We know that turnover is typically the number one cost to employers. Save yourself from investing in the wrong employee for the job.

Aside from turnover costs, as was stated in a previous blog post Who Is Stealing From You , we know that upwards of $50 billion annually in cash and inventory is stolen by employees. Does your job candidate have a history of taking extra "perks" from previous employers?

2. Safer Work Evironment
Running a background check on potential employees before officially hiring them can aide in reducing workplace violence. As an employer, you’ve made a commitment to your current employees to operate a safe work environment. Don’t skip this important step in ensuring that safety.

According to the Bureau of Labor Statistics Census of Fatal Occupational Injuries (CFOI), of the 4,679 fatal workplace injuries that occurred in the United States in 2014, 403 were workplace homicides. However it manifests itself, workplace violence is a major concern for employers and employees nationwide.

3.  Better Compliance in State & Federal Regulatory Requirements
A third-party background screening provider with in-house compliance expertise, can help your company properly create a screening solution. This not only satisfies your industry standards, but also state and federal regulatory requirements, which vary from state-to-state and by type of position you are staffing. Utilizing a partner that is a true expert in this field is important for the success of your company.

4.  Decrease the risk of being sued
Making a bad hiring decision can leave you and your company vulnerable to liability. Ordering a background check can help you find patterns in a person’s history. For example, if a potential employee has had multiple discrimination suits against them, you as an employer may be liable should the employee discriminate within your workplace. Being able to sort out candidates with these issues will help decrease the chances of a lawsuit.

5. Verifying Resumes
Does your candidate have the experience they claim? Do they really have the education and the professional licenses that are listed on their resume? A survey from CareerBuilder  of more than 2,500 hiring managers found that 56% have caught job candidates lying on their resumes.

Background checks can help you weed out the people that do not have the skills for the job. It also can help you verify that the candidate’s resume is valid.  Don’t leave yourself vulnerable to these discrepancies.

Requesting a background check for a prospective employee is perfectly within your rights as an employer. These background check reports can hold vital information that is relevant to your hiring decision. You wouldn’t choose to not gather all of the relevant information when making a different business decision, so don’t skimp here either. Take the time to do your homework and you’ll see the results!

The CHC Blog

By Mark Ridgeway 16 Aug, 2017

“Human resources isn’t a thing we do. It’s the thing that runs our business.”  -Steve Wynn


It’s easy to ignore the human resources side of your business when things are flowing smoothly. After all, there are far more pressing concerns nagging us each day. Relations with employees can be enjoyable and fulfilling or time-consuming and terrifying, depending on the situation.

Being proactive in the area of HR, recognizing and rectifying HR mistakes before they become serious problems, can save you countless headaches and protect your business against costly legal claims.

HR mistake #1: An outdated employee handbook

Every business, no matter how small, should have an up-to-date employee handbook. If you don’t put the most current dos and don’ts in writing, you’re asking for trouble. In addition, laws change, which may significantly alter the applicability of your policies.

Even a few pages outlining acceptable and expected behavior provides employees with tangible guidelines. The employee handbook should be updated about every two years, and all employees should sign an acknowledgment form stating that they received the publication and will abide by its policies.

Include information such as your company’s:

  • Code of Conduct
  • Communications policy
  • Non-discrimination policy
  • Compensation & benefits
  • Employment & termination guidelines

HR mistake #2: Failing to document performance issues

Written policies and standard operating procedures are the boundaries that govern employee conduct. When a violation occurs, it must be accurately and thoroughly documented. Although it may seem time-consuming to jot down in a file that someone was reprimanded for repeated tardiness, it’s important evidence that can support a decision to terminate that individual for unsatisfactory job performance, for example.

In addition, when a company is consistent in its application of performance issues, it’s better able to address potential legal issues that may arise in the future, such as a discrimination claim.


HR mistake #3: Incomplete employee files

For compliance reasons, it’s very important to keep records of all the personnel documents attached to your employees’ work histories.

It’s also a good practice to make sure the proper documents are kept in the employee performance file. Some documents that contain personal information, such as leave and disability forms, should be kept in a separate folder since these are personal in nature and aren’t needed to manage an employee’s performance.

It’s helpful to have a binder for all valid I-9s, which verify employee identity and work eligibility in the United States. They should be easy to access and updated when necessary. Fines can add up quickly if you can’t produce current and accurate documents upon request by Immigration and Customs Enforcement (ICE).

And because of the Health Insurance Portability and Accountability Act (HIPAA), it may be wise to store your employees’ health and welfare-related benefits information separately as well.


HR mistake #4: Disregard for training

Taking time to train your employees is a valuable investment in the future of your business. By including training in the onboarding process, your employees may become more fully engaged and understand how to use their skills to best benefit your company.

Employers who spend time on training also get training’s indirect benefit: employees who feel like they’re valuable and capable of doing more for your organization.

And remember, it’s important that the employee’s performance, including skills and areas of opportunity and growth, are accurately reflected in their performance reviews.


HR mistake #5: Inadequate HR policies

Don’t overlook the importance of an internal HR audit. Set aside time annually to make sure your HR policies are current and complete.

Also, sometimes the unthinkable happens and disaster strikes. By providing clear guidelines on how to respond prior to an incident, you can help minimize the impact it might have on your employees and your business.

A well-thought-out plan will help protect you, your employees and your customers. Consider these questions when developing your plan:

  1. Who will be in charge?
  2. What circumstances do you evacuate or take shelter?
  3. Do you have an off-site meeting place for people to gather?
  4. How will you communicate with your employees during a disaster?
  5. What is the vacation payout policy if an employee quits?

Having policies and plans for handling unexpected events reduces the stress, liabilities and costs to your business.

HR mistake #6: Lack of knowledge in employment compliance

Managers must be fluent in employment laws and regulations. In addition, they must have access to a resource that can keep them up to date in the changing employment environment.

Misclassifying employees as independent contractors when they’re not, or as exempt from overtime when they shouldn’t be, can be costly oversights.

Failure to comply with OSHA (Occupational Safety & Health Administration) regulations for your industry may also yield stiff fines.

Prevention is key. Take time to identify what regulatory agencies govern your industry and what laws must be followed.




More Posts
Share by: