Employee background checks are effective tools to identify potential employees who are likely to exhibit unacceptable workplace behavior. From education verification and criminal record checks to prior employment verification services, these research tools can reveal possible problem areas. In addition, the U.S. Bureau of Justice reported that workplace violence accounts for 18 percent of all violent crimes, and the ACFE reported that companies lose 5 percent of annual revenue due to occupational fraud. Employee background checks open the window to the candidate’s prior history, which is a good predictor of future performance. Without a doubt, the pros of employee background checks should not be ignored.
Protection Against Negligent Hiring Liability
Employers are responsible for what they know and should have known about their employees, such as prior theft, reckless behavior and drug abuse. The courts continually affirm that employers have a duty to exercise reasonable care in the hiring of employees. A background check is a good defense against negligent hiring liability.
Reduction in Employee Dishonesty Losses
According the 2010 Report to Nations, 46 percent of employer theft was committed by employees, 37 percent was committed by managers, and 17 percent of employer theft was committed by executives. Some estimates indicate that the total amount averages out to roughly $4,500 per employee. With a background check, employers can look for signs of any misconduct in terms of fraud or stealing before hiring an applicant to avoid employee dishonesty losses down the road.
Reduction in Workplace Violence
OSHA reports that about 2 million employees are victims of workplace violence each year. These crimes include rape, assault, homicide and harassment. With a thorough background check, employers can increase safety in the workplace and safeguard clients and employees. Employee background checks can reveal if someone has a history of undesirable contact or violence, which is a red flag for future violence.
An Increase in Employee Quality
Once the word gets out that the employer conducts a background check, there’s an immediate improvement in the quality of applicants. It results in fewer applications with false information and discourages applicants who are trying to hide something. With comprehensive criminal background searches, the quality of hires are increased due to a more efficient selection process and improved applicant pool.
Disclaimer Statement: All information presented is for information purposes only and is not intended to provide professional or legal advice regarding actions to take in any situation.