The Benefits of Employee Background Checks

A background check is vital for anyone who drives heavy machinery or is responsible for handling precious goods. Not only can it show you if the individual has a criminal history, but it can also detect whether he has a drinking problem. This can be especially important in workplaces that handle machinery that requires careful handling. An employee background check can also reveal whether the applicant has a history of violence or risky behavior, making them unfit for specific jobs.

Reduces Workplace Accidents

Conducting an employee background check can prevent many workplace accidents. These accidents are often caused by high-risk individuals who don’t follow safety protocols. For example, an experienced employee may need to be trained to follow safety protocols. Other companies can use an accident analysis program to determine what causes accidents and develop corrective measures. In addition to reducing workplace accidents, this type of screening can help improve the safety of your entire facility.

Reduces Fraud

Employee background checks are beneficial for many reasons. They can prevent employee theft, which accounts for 30 percent of small business failures. They can also help identify past lawsuits and other fraudulent behavior. Performing a background check on a potential hire is also helpful for companies aiming to reduce the risk of fraud, which can delay payroll, increase stress, and damage profits. Fraud prevention methods are essential for organizations wishing to avoid these problems.

If your organization has a fraud hotline, you can easily detect and eliminate fraudulent behaviors before they lead to more severe consequences. This reduces costs and promotes a safer work environment. Additionally, this hotline is anonymous, so employees can anonymously report wrongful behavior. This can help identify fraud early, enabling your company to take the necessary steps to minimize damage and keep its operations running smoothly. However, this type of fraud hotline has certain disadvantages.

Reduces Turnover

Employee background checks are beneficial for businesses in a variety of industries. Retention of the best employees is essential to lowering turnover, and screening out bad employees is one way. Turnover in a business can cost anywhere from 30 to 150% of annual compensation. Having the right employees in place can significantly reduce the number of vacancies. A proactive action plan is essential to minimize losses in industries with high employee turnover.

Background checks are a good investment, as hiring the wrong person increases turnover. Hiring a lousy person can cost considerable business money, including recruitment, training, wages, and benefits. Hiring a dishonest employee can also lead to higher insurance premiums, accidents, theft, and workers’ compensation claims. In addition, turnover causes a company to spend more time and money retraining new hires.

Saves Employers Money

Using background checks may put a dent in your budget, but it will pay off in the long run. The cost of a background check can be minimized by using a PBSA-accredited screening partner. Using background checks also prevents costly hiring mistakes. By performing a background check, you will ensure that you hire the best candidate for your company. However, if you’re unsure how to do a background check, consider consulting with an attorney to help determine which methods will work best for your budget.

In addition to helping your organization prevent employee fraud and theft, a background check will help reduce workplace violence. According to a U.S. Department of Justice report, nearly half of all workplace violence is perpetrated by employees. In addition, it is estimated that every year, employers lose approximately $55 million due to workplace violence. However, some benefits to conducting background checks include reducing the number of lawsuits against employees and increased productivity.