Why is Employee Background Check Important?

September 7, 202112:53 pm2421 views
Why is Employee Background Check Important?
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Is there such a thing as ‘too perfect to be true’ candidates?  In most cases, unfortunately, the answer is no. 1 in 3 candidates are more likely to lie on their resumes, a survey found. Upon meeting a seemingly flawless candidate, it is wise to let your skepticism rise and get their backgrounds checked. Many job applicants appear great on paper, with resumes matching the precise requirements the company desires. But when companies fail to conduct the necessary due diligence and background check, many naughty candidates get away with it. 

To save you from the cost of wrong hires, here’s what you need to know about the importance of an employee background check.

Why it is important

Failure to perform a background check on candidates, even if their talents are the best fit for the job, might cost the company a fortune. According to the Association of Certified Fraud Examiners, many employers are concerned about staff stealing cash and equipment. According to the report, global occupation fraud totals over $3.7 trillion each year, or around 5% of annual revenues.

Negligent hiring is another significant issue your company will suffer if no background check is in place. This is a legal term for when an employer is aware of, or should have been aware of, an employee’s risky or untrustworthy character. This may jeopardize work culture, employee morale, and overall workplace productivity.

Benefits of a background check

Having identified the risk of not doing a background check, it is wise to stay alert and not miss this step in your recruiting process. There are several benefits of conducting a check, other than preventing unwanted risks explained previously. According to the HireRight 2021 Global Benchmark Report, the primary advantage of background checks is improved hiring quality, according to 65% of employers. It also verifies whether applicants are truthful about their previous education and work or not. If they lied about it, they may lie about other things once employed. 

Conducting a background check can secure the overall wellbeing of your company. In some industries and companies, certain jobs are considered high-trust positions, such as jobs that involve handling money or large budgets and armed security positions. Background checks that include financial scoring can help determine candidates’ suitability for a chief financial officer or accountant position, for example.

Read Also: Debunking 5 Common Myths Around Employment Background Checks

There are several types of background check process, each focuses on different aspects. Bear in mind that you may not need to do all of these types. Therefore, it is essential to do what seems necessary for your company to avoid lengthy and costly recruitment. Here are three common types of background check you can consider.

  • Identity Verification

It is critical to confirm that the candidate is not using a stolen identity. Employers can use identity verification background checks to validate that candidates are who they say they are. These identification checks validate a variety of data elements, including name, address, date of birth, initial fraud, and active-duty fraud alerts. If you find mismatched information, such as a different name or gender, you need to first confirm this with that candidate instead of dropping the application right away. This type of verification will eliminate hassle in processing social and health insurance once they are employed.

  • Professional License and Education Background Check

With the photo editing technology available nowadays, licenses and diplomas can be fabricated. Therefore, conduct a license and education check on candidates when hiring for a position that requires particular levels of education or license. Check with the granting organizations to confirm any official credentials and professional licenses provided by applicants. For example, CFA Institute and IELTS provide a platform in their websites where you can check a candidate’s validity of license. In terms of education, some countries have made this viable, such as in Indonesia, where you can check a candidate’s education status through this website by the government. 

Conducting a background check

As there are no legal requirements in doing this, it is mandatory to communicate a pre-employment background check policy with all candidates. When doing background checks as part of your recruiting process, utilize a third-party background check provider and only evaluate relevant information. Many businesses provide pre-employment third-party background check service. Business.com suggests the following services:

  • GoodHire

This is an easy-to-use online gateway with excellent customer service that offers three levels of background check (basic, standard, and premium). A smaller company may use GoodHire to pick whichever pricing they wish to take. You may get one background check at a time and there is no minimum purchase quantity. It has the ability to modify reports and is compliant with statutory compliance. The price ranges from $29.99 to $79.99 on average.

  • AccurateNow

This checker platform features reasonable cost as well as good customer service. This service is available in three tiers (basic, standard, and premium). This platform is capable of conducting a wide range of searches, including professional license verification, motor vehicle reports, education and employment verification, and federal criminal searches. The rate generally ranges from $29.95 to $74.95.

If these two examples do not see fit, you can find more alternative tools to do a background check here

Companies can prevent unnecessary risks by performing background checks on candidates. Although a background check can assist you in making an informed hiring choice, it is equally vital to be aware of staying compliant to legal rules. Some jurisdictions also prohibit companies from doing background checks, so it is critical to first understand your country’s local regulations regarding this matter.

Read Also: How Does Remote Recruitment Work?

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