The Importance of Employee Background Checks for Small Businesses

September 7, 2020

You’d be mistaken if you believe that only large businesses need to concern themselves with employee background checks, and if you’re running a smaller business, there is perhaps even more need for you to be vigilant when it comes to who you employ; here’s why:


Access to accounts and confidential information:

Small businesses may employ fewer people, but this presents a potential issue in itself, since it usually means that those staff members have more access to data that is highly sensitive. However, if you conduct employee background checks, you can help to mitigate the risk of any sensitive information being used inappropriately by someone with a history of untrustworthiness or criminality.


Minimize the costs incurred when hiring and firing:

Businesses of all sizes understand how costly (not to mention inconvenient) it can be when a new hire doesn’t work out. With 3 out of 4 small business employers having hired the wrong person for a position, the associated costs can range from $1,000 right up to $10,000, depending upon the circumstances. Whatever the amount, these are usually expenses that smaller businesses can’t afford to lose. Find out that a candidate may not be suitable for a role before you employ them, however, and you can save valuable time and money further down the line.


Are employee background checks worth the money for small businesses?

If you’re thinking about the longevity of your small business, not to mention the safety of yourself and your employees, then yes, background checks are absolutely worth the money, and while going through an online D.I.Y employee check may be cheaper, it’s a risky step to take. Fortunately, there are many vendors providing the full service who have reasonable rates that won’t break the bank, whatever your budget.


What to look for when searching for a background check provider:

There are a few things to know before you begin the process:

  • Make sure they’re accredited by the National Association of Professional Background Screeners.
  • Decide which screens you need to be carried out – the checks you require will depend upon your industry, and a professional background check provider will be able to help guide you.
  • Be clear on the Fair Credit Reporting Act – this tells you exactly how background checks must be conducted and if you work with a service that provides employee checks, or a HR professional, they will help you determine what procedures you need to carry out, and when.
  • Ask questions wherever appropriate – since you’re going to be paying the background check vendor for their services, you’re perfectly entitled to ask plenty of questions to ensure that you understand what is going to happen, and what, and how much, you will be paying for.

In short, if you value your small business and want it to be a success, then employee background checks are a must. With plenty of service providers out there, be sure to select a reputable one with clear and open pricing policies.

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