4 Important Reasons Why It’s a Must to Do a Background Investigation on Potential Hires

Finding a job is never easy, mainly due to the high competition in the job market. To be a successful job candidate, they must catch the employer’s attention by submitting a distinct, strong, and attractive resume. For this reason, many consider misrepresenting themselves or lying on their application.

As an employer or hiring manager, you want to welcome candidates with high potentials that align with your company’s needs. In addition to a proper hiring process, here are the reasons why you must conduct a background investigation on your potential hires to ensure the best interest of your company:

1. Protect Your Company, Employees, and Customers

One of the major reasons to conduct a background check on your potential hires is to avoid harm or legal liability to the company or others, such as other employees or customers. There are instances when a worker commits sexual harassment or violence in the workplace. When you make legal claims, the defense can say there was negligent hiring.

Other possible harm in the workplace as a result of failure to conduct background checks include:

  • The company, through financial loss or image and other reputational issues
  • The public by negligent driving of an employee
  • Customers by sexual or physical assault and shaming on business premises

2. Improve the Quality of Hire

At least 67% of survey respondents said that the quality of their hires improved because of background screening. Background checks help in uncovering false information on resumes. If applicants lie about their criminal history, certifications, education, and employment eligibility, it could result in a poor hire, possibly resulting in legal, financial, and regulatory risks for the company.

3. Enhanced Regulatory Compliance

Regulatory compliance is a company’s adherence to laws, guidelines, regulations, and other specifications relevant to its business processes. Without a background investigation on potential hires, the organization could face expensive fines, legal damages, and loss of privileges. 

Background checks satisfy industry standards and state or federal requirements that vary from state to state and job position.

4. Maximize Productivity

Generally, past performances are a strong indicator of a job candidate’s future performance. In addition, it can reveal their professionalism, job skills, productivity, and interpersonal communication abilities. 

What’s Included in the Background Investigation?

An employment background investigation, which is a part of litigation services, is a process of finding criminal records, financial records, and personnel files on an individual before hiring them. With a background check, employers can know about a candidate’s character, past transgressions, fitness for the job, etc. Based on their position, background investigators include to search the following:

  • Gaps in educational history
  • Gaps in employment history
  • Academic verifications
  • Identity and address verification
  • Character reference check

Background Investigation and the Law

The biggest challenge in conducting an employment background investigation is federal law. Companies are legally permitted to run a background investigation on job applicants but have to comply with the laws, such as when or how to conduct the said background checks. Also, there should be a proper notification and written disclosure for those inquiries about character references or personal opinions and verifications of public record sources.

When looking for an investigation agency, look for those with experience in the employment background investigation. Some investigators only specialize in specific areas of background checks, such as personal matters. Also, choose an agency that professionally handles your calls and meetings. 

Ask for testimonials of former clients since they will be handling some of your most sensitive information. You should also consider complying when they say “go to our site” to learn more about their services. If a business offers a wide range of services, chances are they have a long history of experience, which honed their skills.