Background checks are used for various reasons, including hiring and screening applicants. They reduce risk and protect your business’s reputation. They may also be requested by financial institutions or companies that want to check a potential employee’s educational background. These background checks are non-discriminatory and help employers identify red flags and potential problems.
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Background checks are non-discriminatory
In addition to protecting applicants from discrimination, background check for employment are valuable in protecting your business. Under federal law, employers are prohibited from discriminating against applicants or employees based on certain characteristics. For example, they cannot use background information to exclude people because of their race, national origin, religion, or gender. The Equal Employment Opportunity Commission enforces these laws.
The Federal Trade Commission and the Equal Employment Opportunity Commission, which enforce federal employment discrimination laws, have co-published documents describing the use of background information. These documents outline the rights of both parties and the laws governing the use of background information in employment.
Background checks for employment are non-disruptive, preventable mistakes, and help you avoid losing money on wrong hires. Unsuitable employees can negatively impact your business’s productivity and harm your relationship with your customers and business partners. This pre-employment background check can save your company time and money. While these checks are sensitive, they can protect your business and customers.
They help employers identify potential red flags
Background checks for employment are a vital part of the hiring process, and they can help employers spot red flags in their potential employees. Many types of information are included in a background check, including a candidate’s credit score and financial records. This information can include any bankruptcies, delinquencies, judgments, or liens. While a credit check is not required for every position, it is important for corporate spending or money management jobs. For example, if a candidate has a mortgage, this may negatively affect their ability to perform their job.
A person’s criminal history is also revealed through a background check. While this information should not cause alarm, it is important to ensure that the candidate is honest about any previous criminal activity. Hiring someone with a history of serious crimes can leave a company vulnerable to lawsuits or bankruptcy. Fraudulent activity is also a red flag that may affect the employer’s bottom line. Fraud is a major problem for employers and can ruin a business.
They reduce risk
Background checks for employment are an excellent way to protect your business from potential risks, especially if you have a small business. This investigation can uncover a person’s criminal history, social media usage, and other personal red flags before they’re even offered the job. Moreover, these investigations are not discriminatory or based on race, sex, national origin, or other factors.
Additionally, they help businesses determine if a candidate meets specific standards for employment. Businesses that ignore this procedure risk damaging their reputation and even incurring legal action.
Background checks can also reduce the risk of workplace violence. For example, if an applicant has a history of violent crimes, this is a huge red flag. Similarly, screening for drugs has been proven to reduce on-the-job injuries. A recent study found that screening new hires for drugs reduced the number of worker’s compensation claims by 50%. Therefore, background checks for employment should be a top priority for your business.
They protect your business’ reputation
Employing background checks for your employees can protect your business’s reputation and ensure a safe working environment. These procedures can reduce the potential risk of workplace violence and property damage. They also help to build a sense of community within your organization. This is important for building a good working environment and developing good customer relations.
Whether you hire a permanent employee or an employee temporarily, it is essential to protect your company’s reputation. Bad hires can damage the reputation of your business within days. According to a CareerBuilder survey, the costs of hiring a new employee include the hiring process, onboarding, and salary during the probationary period. However, the costs associated with bad hires are more difficult to quantify – such as the damage to your company’s image and reputation. Background checks can prevent this by revealing any red flags.