Conducting background checks is a common practice carried out by many companies and their HR departments as a method of verifying the credentials, history and overall suitability of prospective candidates.
While they are not mandatory for all businesses, certain industries such as healthcare, government, social services and education do carry them out as a matter of routine.
For those businesses that do not, this article will discuss the importance of conducting background checks, outlining the many benefits this practice can bring to their organization as a whole.
Maintains Higher Standards
Conducting background checks can help businesses hire only those candidates that are most suitable for the position.
By filtering out those who do not have the necessary experience, qualifications or character, companies can ensure they are bringing in people who are more likely to contribute to their organization in positive and productive ways.
This practice can also dissuade certain individuals from applying for a role as they are aware that a background check will flag something that may disqualify them from the recruitment process.
As a result, businesses can ensure the right employees are running their operations, and that a higher standard of efficiency and productivity is maintained.
Saves Time and Resources
Failing to carry out adequate background checks can turn out to be detrimental to a business, costing them in more ways than one.
Discovering an employee does not have the job experience or the educational qualifications they claimed they had can result in sub-par performance and costly mistakes for a business.
This could lead to a number of financial consequences for a business in terms of re-hiring and training, severance payments and potential legal liabilities.
For example, workplace safety may be compromised by hiring an individual who claimed to have experience in operating specific machinery or handling hazardous materials, leading to accidents and injuries in the performance of their duties.
As a result, a business may find themselves facing costly legal action or workers’ compensation claims.Â
Carrying out background checks to verify their experience and suitability for the role can greatly minimize these risks and save a business potential time, money and resources.
Need Career Advice? Get employment skills advice at all levels of your career
Enhances Workplace Safety
In addition to avoiding false claims by candidates regarding their previous work experience and the potential workplace safety issues this can create for businesses, conducting background checks also ensures individuals with behavioral issues or criminal tendencies are identified during the hiring process.
By carrying out a criminal record check a business can uncover these matters early, and prevent potential workplace conflicts or incidents from taking place that could pose a risk to other coworkers or customers.
In this way, businesses can ensure their hiring practices align with the culture and values that they uphold and wish to demonstrate both inside and outside of their organization.
Minimizes Liability
Businesses have a duty to exercise reasonable care when hiring employees, making sure they do not hire people who pose a danger to other employees or the public.
In cases where an employer fails to adequately screen an employee before hiring them, leading to harm or injury to others, they may end up facing negligent hiring claims.
If the claimant is successful a business may incur significant costs in legal fees and compensation.
They may also suffer reputational damage which can further erode their bottom line and position in their market.
By conducting background checks, businesses can mitigate such risks and take heed of any red flags such as a candidate’s history of violence or other aspects of their background or behavior that would make them unfit for the role.
Background checks are required in certain regulated industries serving vulnerable people, such as children, the elderly, or the disabled.
Companies that fail to carry these out may also face legal penalties and loss of licenses.
Protects Business Assets
Businesses can safeguard themselves against the risk of fraudulent activity from within their organizations by carrying out background checks on potential hires.
In addition to criminal record checks which can highlight a history of theft, fraud or other criminal activity, reference checks from previous employers can also flag any questionable or dishonest behavior for an employer to delve into deeper or clarify.
By carrying out background checks, businesses can reduce the risk of fraudulent activity within their organization or which could pose a threat to their customers, shielding themselves from legal and financial losses, as well as reputational damage.
Background checks can put businesses on notice of potential issues that could harm their staff, customers and operations.
In this way, they act as a powerful and effective line of defense ensuring only those candidates that are most suitable for the role and that are aligned with their company values are brought on board.
