Employment Background Checks are Vital, Here’s Why

There are many reasons employers take a deeper look at both new applicants and existing employees, and the channels they go through can vary depending on the type of position. Today we review a few examples of why an organization would want or need to conduct these screenings:

1. Compliance with Federal/State/Local Regulations

Certain jobs just can’t be attained without a proper screening. For example, working with children, the elderly, or disabled people will require a criminal background check in most states. Many types of professional licenses require credit screening as well, such as financial licenses or even real estate licenses. As an added precaution, a large number of government jobs will require some type of security clearance.

2. Protection from Negligent Hiring Lawsuits

Employers may be held liable if an employee’s actions hurt someone on the job. These types of lawsuits are on the rise and it is in an employer’s best interest to mitigate this risk by conducting a screening as early as possible. Nobody wants to end up like the temp agency that failed to screen a registered sex offender before hiring him as a mall Easter Bunny.

3. Uncovering Fraudulent, False, or Inflated Information

A recent SHRM survey states that 80% of resumes have misleading statements, and 53% of resumes have completely false statements! With that being said, verifying an applicant’s educational degree and previous employment has become a necessary step during the hiring process. There are additional steps that can obtain information about the person behind the resume.

4. Protection from Terrorist Acts

The “T-Word.” Most people wouldn’t consider it as a potential workplace hazard, and yet in the U.S. most acts of domestic terrorism have been focused on the workplace. This has resulted in higher-level security and identity verification procedures by employers.

5. Avoiding Executive Scandal

No matter how you cut it, executives face a higher level of attention and scrutiny, both in and out of the workplace. Counterintuitively, many executives are put through a lower degree of screening and verification than their employees. It doesn’t make sense for organizations to place less emphasis on screening for higher powered positions – but it has happened very publicly in the past!