The Benefits of Implementing a Pre-Employment Background Check Policy
Pro: Background Screening Reduces Your Exposure to Liability
By having a comprehensive background screening process in place, you can reduce your liability and exposure to negligent hiring. But what does that really mean? Negligent hiring liability holds employers of all sizes responsible for what they do know, but also what they should have known about their employee. Without having all of the facts available to you, you can open up your business to a negligent hiring lawsuit.Con: Background Screening Can Take Time
Taking anywhere from 24 hours to up to a week, background checks can put a brief hold on your hiring and onboarding process. There can be delays in getting proper documentation from the candidate or HR may have a backlog of work. If you need an employee to start work right away, it can be tempting to skip the background check process, or delay it until after the candidate is hired. However, that can be even more costly, opening you up not only to liability, but also to the risk of needing to let that employee go and start from scratch again.Pro: Background Screening Creates Trust
According to a Career Builder survey, 38% of employees have lied about their previous job responsibilities. Additionally, candidates can have fake diplomas, work histories, or references. Implementing a comprehensive background screening program helps the candidate start his or her position with your company off on the right foot by establishing a transparent relationship.Con: Background Screening Costs Money
There’s no getting around it—someone does need to pay for the background check. If your business is running tight and looking to cut corners, you might think this would be a good way to save money. However, the average settlement for a negligent hiring lawsuit is a massive $1 million—much more expensive than a pre-employment background check!Pro: Background Screening Reduces Loss
Employee theft is a massive problem with one study reporting that 95% of employees steal from their employers. It is on the rise, and Business News Daily names poor pre-employment screening as one of the reasons. Knowing about previous theft convictions up front can help you make your hiring decision with material facts. When weighing whether to implement a background screening program, don’t try to DIY and expose your business to material risk. Contact ClearStar today, and work with a trusted screening partner.Let's start a conversation
At ClearStar, we are committed to your success. An important part of your employment screening program involves compliance with various laws and regulations, which is why we are providing information regarding screening requirements in certain countries, region, etc. While we are happy to provide you with this information, it is your responsibility to comply with applicable laws and to understand how such information pertains to your employment screening program. The foregoing information is not offered as legal advice but is instead offered for informational purposes. ClearStar is not a law firm and does not offer legal advice and this communication does not form an attorney client relationship. The foregoing information is therefore not intended as a substitute for the legal advice of a lawyer knowledgeable of the user’s individual circumstances or to provide legal advice. ClearStar makes no assurances regarding the accuracy, completeness, or utility of the information contained in this publication. Legislative, regulatory and case law developments regularly impact on general research and this area is evolving rapidly. ClearStar expressly disclaim any warranties or responsibility or damages associated with or arising out of the information provided herein.
