The Facts about Employee Background Checks – What You Need to Know

You never really know about people today, which is why so many businesses now screen all of their applicants with employee background checks. While it may seem like an intensive measure and an expense that you can avoid, the truth is that employee background checks are one of the only ways to ensure that your new hires are worth the time and money you'll be investing in them. And employee background checks aren't as difficult or expensive to obtain as you might think. Unicorn HRO can help with employee background checks and help you find the perfect employees without having to worry about their history.

Employee background checks are more important than ever. Hiring the wrong employees can cost a company hundreds, and hiring mistakes make up over half of small company failures, highlighting the importance of employee background checks. And in recent years cases of hiring negligence have been brought to court. If an employee causes damage or injury, an employer might be held liable. Employee background checks can investigate many different aspects of a potential employee's history and reveal a variety of different issues that applicants could be hiding from potential employers. Employee background checks are governed by certain privacy laws and could even be required depending on the nature of employment.

Depending on your company you might be interested in a variety of different things from employee background checks. Employee background checks could reveal criminal records, driving records, credit information, sex offender registration, and more. Even information about previous employment or identity related issues could be uncovered through employee background checks. Although civil suits and certain financial information older than seven years is generally not allowed to show up on employee background checks, employers are well within their rights to used employee background checks to find out more about their potential employees.

And what you uncover with employee background checks might surprise you. Employee background checks have uncovered that thirty nine percent of all employee background checks returned at least one serious issue, or 'flag'. Ten percent of employee background checks find criminal related flags, ten percent find educational verification issues, twenty three percent uncovered employment verification flags, and a whopping forty four percent of employee background checks turned up driving related issues. And what this means is that a huge percentage of your potential applicants could very well be trying to hide something from you that your employee background checks will uncover.

There's a chance that your employee background checks will uncover nothing or only minor issues, but when you consider that companies with one hundred or fewer employees suffer two hundred thousand dollars in fraud loss each year because of employees, the importance of employee background checks becomes much clearer. And just hiring the right person is important since replacing a bad hire will cost three times the initial cost of the position. Unicorn HRO can help you with your employee background checks and ensure that your new employees are just what you're looking for. Companies today simply can't afford to ignore the facts about employee background checks.

Get Started

Learn more about our fully integrated Human Resources, Payroll and Benefits Solutions

Contact Us