Why Employee HR Background Check Matters?

Prevents Theft

One of the best ways to prevent employee theft is to hire trustworthy employees. This means potential screening candidates for a job with thorough background checks and reference checks. You cannot put your company’s valuable assets or sensitive data in the hands of people with a history of unethical behavior. Unfortunately, some employers don’t bother with background checks on rank-and-file employees. Employee theft costs businesses $60 to $120 billion per year. It contributes to 30 percent of all business failures. The average employee’s application contains inaccuracies and false information. In addition, 33% of job applicants lie about their employment chronologies or exaggerate their accomplishments. Using employee HR background checks to prevent theft is the best way to create a culture of accountability.

Establishes Risk Level

HR professionals must determine the risks associated with hiring employees based on the background information provided by the applicant. In this regard, they must consider the applicable state and federal laws and regulations. Moreover, they must set the criteria by which they decide whether to hire an applicant or not. Despite background checks’ potential benefits and liabilities, HR professionals must exercise extreme caution and follow FCRA guidelines when implementing such programs. They should also ensure that the programs incorporate an individualized assessment and targeted screening.

The primary purpose of an employee HR background check is to prevent hiring an employee with a past criminal record. It is a way for hiring managers to assess risk and prevent situations that might lead to sexual harassment, violence, and harassment in the workplace. Additionally, it protects them against damages claims resulting from such incidents. Similarly, a financial background check aims to determine the financial stability of a prospective hire. This information is sourced from recognized credit agencies. It is important to note that most countries have enacted laws and regulations regarding credit checks, requiring employers to conduct a credit check on potential hires before hiring them. This verification check assumes special significance when hiring senior-level finance and financial services employees.

Identifies Red Flags

Running an Employee HR background check can be an excellent way to ensure your future employees are eligible for your company. You should take the time to gather as much information as possible about any candidate and consider the background of their previous employers and political affiliation. By knowing this information, you will be better equipped to make an informed hiring decision.

You will also be able to avoid hiring someone with a history of violent crimes or minor criminal convictions. Although these aren’t usually deal-breakers, hiring someone with a criminal past is never a good idea. This is because it’s impossible to hide a criminal past from an employer. It’s also crucial to adhere to Equal Employment Opportunity guidelines to ensure that your hiring decisions are not based on the criminal records of your candidates.

It Avoids Discrimination 

It is essential to check references before making a hiring decision. Many employers have been red-handed for discrimination, especially against minority candidates. As such, it is essential to disclose that you will perform a reference check and focus on facts rather than prejudice. Moreover, only ask legally permissible questions. Also, rely on only one reference.

According to the Equal Employment Opportunity Commission (EEOC), employers cannot discriminate against one group over another based on their background. An employer’s background check policy should not exclude applicants because of their race or ethnic background.

It Is Required By Law

When running an employee HR background check, employers have some legal obligations. First, they cannot ask for extra information about an applicant or employee based on race or any prior discrimination complaint. They also can’t retaliate against someone for asserting their rights against discrimination. This includes participating in proceedings under federal laws enforced by the Equal Employment Opportunity Commission. However, employers can ask for limited medical information after making a job offer or after the employee has started work.

In addition, employers can’t require applicants to disclose criminal records before the initial interview unless they hire more than 15 employees. They cannot also request information on bankruptcies or arrests with judgment dates older than seven years. 

It Doesn’t Reveal Criminal Convictions.

Human resources professionals have access to sensitive information about both candidates and employees. When conducting an employee HR background check, these personnel must seek the applicant’s consent before divulging their criminal history. They may only share information about convictions or arrests with co-workers entrusted with the task of workforce planning or recruitment. However, there are some situations when it is necessary to reveal this information. A person’s criminal history does not disqualify them for federal employment. For instance, a DUI conviction won’t necessarily disqualify you from being hired by a federal government agency.

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