5 Key Benefits of Conducting Background Checks on Job Applicants

Conducting Background Checks on Job Applicants


Workplace violence costs organizations in terms of lost productivity and financial loss due to damage to their reputation and bad publicity. It also creates an unsafe working environment for employees.

Background checks should be front and center at the recruitment stage to avoid this.

They help employers to make fully informed decisions while reducing the risk of negligent hiring lawsuits.

Saves Time

A lot of time goes into interviewing and vetting candidates. Then once a decision is made and the candidate is onboard, more time goes into training them for the job. It can be costly for a business and can impact productivity.

Background checks can uncover a lot of information that is not disclosed on a resume or job application. For example, a criminal check can reveal pending charges or arrests. A credit check can unearth financial issues or irrational credit behaviors that would be an issue in certain roles, such as accounting positions or those handling significant amounts of money.

A background check can also verify that a candidate has the government-issued credentials they claim, such as a CPA license, teaching credential or medical license. It can help avoid a negligent hiring lawsuit that can cost the company a fortune.

Reduces the Risk of Hiring the Wrong Person

Many companies are exposed to legal risks and financial costs when they hire the wrong person. It can include lawsuits, wrongful death claims, class actions, and brand or reputational risk. A background check can help prevent this by ensuring your employees are safe and productive.

In addition, a background check can uncover discrepancies in an applicant’s resume or application. It may include lying about previous employment or exaggerating credentials or experience. These checks also help identify criminal offenders, which is especially important for roles requiring trust and safety.

A good background check can also give you a better sense of an applicant’s character by verifying their credit history and determining if they’re trustworthy with money. This information is crucial for jobs that regularly handle company funds or client data.

Ensures Compliance

The legal process of obtaining consumer reports for employment is regulated by federal law, and compliance with these laws is crucial for any business conducting background checks. It is significant for organizations that employ many candidates or those with international operations.

It is a common practice for job applicants to lie on their resumes or applications, which can have serious consequences. If a company makes a hire that turns out to be unsuitable, it may have to pay a significant amount in damages and compensation.

Performing background checks on candidates helps companies make fully informed hiring decisions, which can help them maintain compliance and safety standards. It also helps them avoid negligent hiring lawsuits. Keeping up with criminal record disclosure regulations helps businesses ensure their background screening processes are fair and consistent for all candidates.

Reduces Turnover Rates

Employee turnover is expensive and disruptive. By running background checks on job applicants, you can ensure that the people you hire are qualified and reliable. It can reduce problems with absenteeism, theft, poor productivity, and even violence in the workplace.

Many applicants lie on their applications or interviews, exaggerating their work history or education. Verifying this information through a background check can help you avoid hiring people who don’t meet your expectations and can increase your bottom line.

Some jobs require high trust and responsibility, such as positions that work with children, vulnerable adults, or those that access personal information. A background check can help you make informed decisions with all the facts, including criminal records and employment histories.

Saves Money

In addition to the costs associated with hiring and training a new employee, turnover can cost organizations thousands of dollars in lost productivity and revenue. Studies show that a bad hire can cost companies 2.5 times the candidate’s annual salary, depending on the industry and position.

Negligent hiring lawsuits can be extremely costly, and one of the most common claims revolves around a company’s failure to screen candidates for past indiscretions properly. In addition, negative publicity stemming from workplace violence or other incidents can damage a business’s reputation, harming its brand and sales.

Employers should also consider investing in a service that can provide ongoing monitoring of background checks and can notify employers of any changes. It helps organizations avoid making bad hires and save money in the long run.

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