Why Employers Run Background Checks

There are so many great reasons why employers run pre-employment background checks. Background checks empowers employers to make smart employment decisions without being limited to just the information that is supplied by the applicant. The adage that an ounce of prevention is worth a pound of cure, could be no more applicable than in the hiring process. The cost of a background check is only a fraction of the financial setbacks associated with bad hires. Below are a six ways background checks help employers:

1. Control Internal Theft
   Most business theft is carried out by insiders.  Criminal background checks and past employer verifications help forewarn employers of potential thieves. According to the American Management Association and US Chamber of Commerce 30% of all business failures are caused by employee theft. 

2. Bad Publicity
   Your employees are the front line of your company’s brand and reputation.  Bad publicity caused by unscrupulous employees can have long and far-reaching effects. Looking into one’s background provides insight into that person’s future performance. 

3. Assure Job Competence
   Statistics show that nearly half of applicants have “significant” embellishments in their resumes’ work experience and education achievements. Employment and education verifications give employers the full picture. 

4. Lower Job Turnover Rate
   Troublemakers, especially the violent ones, lead to increased job turnover. A toxic work environment creates an unsafe environment which too often causes the better employees to leave the company.  

5. Reduce Negligent Hiring Risks
   Background checks are often the best way to show due diligence in protecting employers from negligent hiring cases.  Employers have a “duty of care” to protect staff and the public from persons that they knew, or should have known, pose a risk. Suppose an applicant is hired who has a history of assault cases but an employer chose not to run a background check. The employee commits a similar crime to the one committed in the past. The employer becomes an easy target for a damaging negligence in employment lawsuit.  

6. Avoid Rejected Applicants
   Nearly all US companies use background checks as a part of their screening process. Employers who choose not to screen take the increased risk of hiring the people that were turned away by more informed employers. According to a group survey by HR.com and PBSA, 96% of employers conduct employment background checks.

Conclusion:
These are just six of the reasons why employers run background checks. Obviously, the cost of background checks is far outweighed by the benefits they provide.