Every business’s worst nightmare is a bad hire.
They not only misuse company resources but also put customers, employees and the reputation of the company in danger.
A poor or ineffective employee lowers morale and makes the workplace uneasy for everyone else. A poor hire can also lead to unhealthy working conditions, these mistakes can harm clients, or cause financial losses.
Sadly, by lying on their resumes, these rotten apples avoid detection by most hiring managers. A background check that thoroughly examines each applicant’s employment history, just as a real detective would, is a better approach to pick out these undesirable applicants.
If you haven’t done background checks for employees, then here is a chance to get started to reduce the number of bad hires.
What is a background check?
A background check is the process of reviewing an applicant’s employment, criminal, commercial, driving, and financial records prior to hiring them. Background checks help you make more informed hiring decisions and protect your company and employee reputation.
You can choose to do the background check yourself. Alternatively, you can outsource the screening process using a professional background screening company or background screening software.
Maintain consistent policies and procedures when conducting background checks. This way the process is fair to all applicants.
How to do a background check
Ready to eliminate bad hires at your small business? Use the six steps below to ensure your background check process is as thorough as possible.
1. Inform the individual
Candidates must be informed that you are running a background check in order to conduct it. According to the Fair Credit Reporting Act (FCRA). You are required to inform applicants that you plan to do a background check on them. Additionally, you need the applicant’s consent before proceeding with the background investigation.
Before you start the process, make sure to write down your plans for doing a background check and provide each candidate a copy in person or by email.
Have a background check notice form that each applicant must sign. Each applicant’s signed consent should be kept on file.
2. Review applicable state laws
Each state’s laws differ in terms of what background checks are allowed or forbidden. Some states have restrictions on the types of records you can search, including those related to criminal, credit, driving, employment, and military service.
For instance, several jurisdictions have laws known as “ban-the-box” laws that forbid hiring managers from asking job applicants about their criminal histories. Ohio, Arizona, and Georgia are a few of these states.
States might also have particular state rules governing background checks, such as examining a candidate’s credit history. In Colorado, a prospective employer may only take into account a credit report if the prospective employer is a bank or financial institution, the report is mandated by law, or the information is related to the work.
Check your state’s background check laws before conducting background checks on individuals.
3. Verify the references of candidates
One report claims that 85% of companies discovered applicants who had lied on their resumes or applications. So you must examine references if you don’t want to be duped by candidates.
It takes effort, patience, and time to check references. Reference checks are crucial to the background check procedure, though.
You can gain a different viewpoint on the applicant by checking references. Consider making a reference check form so that you are organized and have a list of questions to ask when checking references.
Some examples of questions you can ask an applicant’s references include:
- What are ______ ‘s strengths? What about their weaknesses?
- Tell me about this applicant’s biggest accomplishment.
- On a scale of 1-10, how strong are _____ ‘s communication skills?
- Would you recommend this candidate?
Verify the candidate’s employment dates if you’re contacting their prior company. Depending on the former company, there may be a rule in place that restricts sharing of employment dates.
Furthermore, make sure to give each reference you phone or contact a sincere thank you.
4. Consider hiring a background check company
You’re in luck if you don’t want to perform all the legwork involved in running a background check; you may outsource the procedure.
A full background check can be carried out on your behalf by a certified background screener (like Intellicorp). In general, the outcomes are significantly quicker and more precise. Not to mention, you may relax knowing that all local, state, and federal background regulations are being handled by experts.
There are programs and websites you can use to check things like credit, criminal, and job records online if you prefer to conduct your own investigations. To verify information on a CV, you can also look at things like a candidate’s social media accounts.
Whether you hire a screening company or handle the task yourself, make sure you do your homework. Spend some time examining various businesses or websites to make sure they are trustworthy, reliable, and safe to use.
5. Perform drug test
Pre-employment drug testing is required by a significant number of employers—56%, to be exact. Similar to most employers, you probably want to be safe than sorry.
This phase typically follows a candidate accepting a job offer. Normally, the applicant’s ability to pass the drug test is a requirement for the job offer.
Most American employers are not obligated by law to conduct drug tests. However, there are several professions that mandate drug testing. These sectors comprise:
All members of the civil service, including those employed by the Department of Transportation and in law enforcement and maintenance (e.g., vehicle operators)
The Drug-Free Workplace Act specifies the rules for drug testing at the federal level. Review this document before proceeding with drug testing at your business. And, check with your state about state-specific drug testing regulations.
6. Examine reports.
Once your background investigation is complete, evaluate the applicant’s results before making a choice.
If your report contains information that prevents you from hiring them, you are required by FCRA requirements to let the applicant know (e.g., criminal history). The applicant may object to or clarify the data.
If a candidate’s background check results disqualify them from employment, take the following actions:
- Inform the candidate about negative results
- Let applicants know their rights under the FCRA
- Give the applicant an opportunity to rebut the information in the report
If a candidate passes your screening with flying colors, extend a job offer and continue with the onboarding process for new hires.
Benefits of background checks
Background investigations can help you:
- Avoid using subpar employees
- Defend yourself and your company against dangerous personnel
- lower staff turnover, better new hire quality
- Boost security and safety
- saving you time over time
Background checks for small businesses have some drawbacks, just like other business practices. Background checks can be costly and time-consuming. However, the benefits of background checks typically outweigh the drawbacks.
Bottom Line
Although it is difficult to try such methods, there are various ways to assess the caliber of the candidates you hire. A background check aids in preventing employee attrition and protecting the company’s reputation. It aids in boosting employee productivity and helping recruiters make better hiring choices. You are ultimately responsible for choosing to be safe rather than regretting it later.
SW HR Consulting has been helping companies to build their teams and values for over 10 years. Contact us to find out more about our unique hr outsourcing services and see how our expertise can benefit you.
