Why Small Business Owners Can't Afford to Skip Background Checks – Part II
In Part I of this blog series, we discussed why skipping background checks can put your employees and business reputation at risk. The Professional Background Screening Association (PBSA) reports that employee screening is “nearly universal” among U.S. employers, with 83% screening full-time employes and 67% screening all part-time employees. In Part II, we'll explore various types of background screenings, along with their benefits and potential risks.
Types of Background Checks to Consider
The screenings you choose will depend on the position's responsibilities and industry requirements. Here are some common types:
Criminal Background & Registry Checks: These screenings, which make up 94% of most screenings, search local, state, nationwide, and federal repositories and databases for criminal history records, often including sex offender registries.
BENEFITS:
Ensure workplace safety by identifying individuals with a history of violence.
Protect your business from individuals with a history of integrity issues.
RISKS:
Information may not always be accurate.
A clean record does not guarantee future behavior.
Employment Verifications: This screening verifies a candidate’s work history.
BENEFITS:
Avoid hiring individuals who misrepresent their qualifications and background.
RISKS:
Potential legal risk of “outing” a candidate to their current employer.
Employee screening is “nearly universal” among U.S. employers, with 83% screening full-time employes and 67% screening all part-time employees.
Education & Professional License Verifications: These screenings confirm a candidate’s educational background and professional credentials.
BENEFITS:
Confirm candidates have the required education, licenses or certifications.
Reduce legal liability and risk of negligent hiring lawsuits.
Avoid hiring individuals who have misrepresented their qualifications.
RISKS:
Can be time-consuming depending on the verifying organization.
Drug Testing: These screenings help you maintain a drug-free workplace.
BENEFITS:
Comply with federal regulations in certain industries.
Identify candidates with substance abuse issues.
Reduce risk of workplace accidents.
RISKS:
Tough to stay compliant due to evolving state regulations on marijuana usage.
Driving Record Checks: This screening is crucial for positions involving driving.
BENEFITS:
Confirms suitable driving records to reduce risk.
Demonstrate due diligence in ensuring workplace safety.
RISKS:
None.
Credit Checks : These checks are important for positions handling financial information.
BENEFITS:
Identify candidates with a history of fraud or financial crimes.
Reveal indicators for financial irresponsibility.
Reduce the risk of theft or fraud.
RISKS:
Tough to stay compliant due to evolving regulations on using credit checks for employment decisions.
Reference Checks: These allow you to speak with people who have worked with the candidate.
BENEFITS:
Verify qualifications and information provided by the candidate.
Gain insights into work ethic and interpersonal skills.
RISKS:
Candidate may provide fake references
Social Media Screening: These checks examine a candidate's online presence.
BENEFITS:
Prevent association with individuals who might damage your brand.
Maintain trust with your existing team and stakeholders.
Identify potential red flags in public behavior
RISKS:
Potential infringement on freedom of speech.
Risk of violating an employee’s right to discuss workplace conditions per the National Labor Relations Act.
Conclusion
You protect your business, employees, and customers from potential risks and liabilities by thoroughly vetting candidates through these various screenings. Each type of check offers unique benefits, but it's important to weigh these against potential risks and legal considerations.
In the final part of this series, we'll discuss how to properly implement background checks in your small business. Stay tuned for practical tips on creating a robust and compliant screening process while navigating potential pitfalls.
Disclaimer: The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information.
