Can You Afford Not To Carry Out Employee Background Checks?

March 3, 2020

Companies who don’t think employee background checks are necessary, are probably lucky not to have experienced any negative consequences, but you only have to use your imagination to come up with many reasons why it’s always a good idea to perform them.


While criminals who have paid for their offences either with fines or jailtime, may prove trustworthy and you might want to give them a chance, you should at least have the opportunity to know their background so that you can make an informed decision about hiring them.


Background checks are of course not free, and are certainly not mandatory for all industries, but the cost of carrying them out, compared to the amount you could stand to lose if your business is defrauded, is nothing in comparison. There have been instances where companies have employed individuals without knowing their criminal history, only to later discover that they had multiple convictions for such crimes as fraud and theft of bank cards and identities. These individuals have been known to go from state to state, job to job, repeating the same kind of crimes and costing companies hundreds of thousands of dollars.


It might also be tempting to skip the process if you own a business and you’re in urgent need of employees, or perhaps your HR department have been letting the checks slide of late, but as mentioned above, it could end up costing you dearly in the long run if you miss this process.


Here are some of the types of background checks that are available to employers; note that there is no ‘one-size-fits-all’ solution for each company:

  • Criminal background – Focusing on court and police records, these checks aim to show whether an applicant has a criminal history.
  • Driving records – self-explanatory, this check helps employers learn about a candidate’s driving history and whether they hold a current license.
  • Litigation records – this check can help determine whether a potential employee is likely to file a lawsuit against you or your company.
  • Drug testing – this is as straightforward as it sounds and is a common form of pre-employment check.
  • Employment and education check – designed to verify the employment and educational history and qualifications on an applicants’ resume.

Background checks can vary hugely in cost, and naturally the type of checks that you perform will alter the price. Some companies charge flat rates for their services, while others offer a basic price that increases for each extra check that’s required. If your business is a large one, then there may be discounts available for multiple checks carried out at any one time.


Help your business avoid costly and embarrassing legal claims and litigations, by having a consistent background check policy in place, and make checking, an essential part of the hiring process. To know more about protecting your company, employees, customers and reputation, talk to your trusted employee law and payroll specialist.

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