Her resume looked perfect.
Connie had graduated from a well-regarded university, had 15 years of experience in progressively more responsible Accounting and Finance positions, and aced the interview. Congratulations, Connie, you’re our new Director of Accounting!
The only problem was that soon after the hiring, things around the office started turning up missing. Then a few accounts were short. When they finally broke into her desk, they found a cache of items resembling the treasure of the Count of Monte Cristo! Not only had Connie mightily fudged her resume, she had omitted a conviction or two for theft on her record as well.
There are many reasons that more and more employers are turning to background checks as an essential part of the hiring process. In a 2008 CareerBuilder.com survey, 49 percent of U.S. employers said they had discovered an applicant at one time or another had falsified certain aspects on his or her resume.
Conducting a background check not only ensures that the people you hire can do what they say they can, it also protects your employees and the company from a host of potential problems.
Here are our Top Ten Reasons to Do Background Checks:
1) Provides Effective Hiring. Maybe the typical example isn’t as grievous as with conniving Connie, but many hiring managers have found out too late that the new poorly performing Marketing Manager exaggerated his experience and in fact had only been in Sales. A poor hire undermines company performance and wastes time and money.
2) Minimizes Turnover. Yes, Connie and the Marketing Manager have to be replaced – and fast -resulting in unnecessary turnover additional recruitment, interviewing, and onboarding time and costs.
3) Protects Company Reputation and Assets. It wasn’t just the expensive Italian vase Connie pilfered from the Board Room that was missing but significant dollars received from customers and other sources of revenue. The company’s reputation also suffered when word of its poor hiring practices became known.
4) Ensures the Safety of Your Employees. As with Connie, a job applicant bent on concealing his or her past may have violent tendencies, a history of trouble-making with prior employers, or a penchant for fraud. A proper background check ensures your employees work in a safe environment free of the risk of physical harm.
5) Minimizes Legal Liability. An employee harmed by a co-worker may sue the company for negligent hiring and failure to provide a safe workplace. Another hit to company reputation and employee morale!
6) Saves Costs of Litigation. If anyone sues as a result of an act of an employee for whom no background check was conducted, the costs of litigation, attorneys, and insurance could be staggering, win or lose.
7) Provides Peace of Mind. Knowing you take the time and make the effort to help ensure their safety promotes employee peace of mine and morale.
8) Increases the quality of the talent pool. As word gets out that you conduct background checks, you will begin to attract more qualified candidates as sincere and talented job-seekers will
want to apply to your company while the Connies of the world steer clear.
9) Complies with clients’ corporate policies. More and more customers and clients, rightly concerned about the safety of your business practices, are likely to require you perform background
checks.
10) Fulfills a Duty to Check. For certain positions and industries, you have a legal requirement to obtain background checks. It is necessary, for example, to check the background of anyone working with children, caring for seniors in nursing homes, or involved with home and personal security.
As important as it is to do background checks, it is equally as important to do them right.