Why Are Employee Background Checks Necessary for Small Businesses?

A background check on an employee suggests that a company is considering hiring you. The majority of organizations won’t conduct an employment background check unless there is a compelling reason. Employee background checks are in-depth examinations of a person’s or an organization’s financial records, criminal histories, and business records. A criminal background check may be conducted by background check companies using data including education, employment, credit history, criminal history, and driver’s license history.

Consequently, the following query is posed: Is an Employee Background Check Really Required for Small Business?

A firm has to have this verification in place to guard against fraud and/or other illegal activity. No employer wants to hire a candidate with a criminal history.

The results of a 2021 poll by ResumeBuilder.com revealed that 32% of Americans admitted to fabricating their resumes.

To find out more about the answers, keep reading……….

How Background Checks on Employees Affect Businesses

The background check determines whether the candidate’s prior performance meets the requirements for hiring them for the post. Uncertainty in the recruiting process: If the hiring process forbids conducting a background check on the applicants, unclear circumstances may develop.

Background checks can reduce the likelihood of violent, abusive, or theft-related offenses being committed. Verification reduces costs associated with product returns, packaging waste, and other expenses. They may also assist your company in determining whether a candidate is the right fit for the position by checking the accuracy of the information on an applicant’s resume or application for employment. Approximately 87.4 million Americans, or one in three adults, have a criminal record. Additionally, between 15, 000 and 13,000 new names are added each day.

What Makes a Background Check Essential?

  • Safeguard clients and staff

Background checks on potential employees are crucial to ensuring that you, as the employer, don’t hire anyone who might be a burden or a threat to a safe workplace. To lessen the likelihood of violence in the workplace is your aim as an employer. You have a legal obligation to yourself and your other employees to make sure that every employee at your company has a rigorous background check. Pre-employment testing provides you with precise information you can use to evaluate each applicant on an individual basis.

  • Employment and academic history

Background checks on potential employees confirm their qualifications and education. A profile check on the applicant is an effective approach to confirm that they are qualified for the employment because many people exaggerate or lie on their resumes.

  • Cut Back on the Fraud Risk

If your business gives employees access to money or the power to start financial transactions, you should find out if the applicant has a criminal record for financial fraud or debt problems that might show up on a credit report for future employment. You can lower the danger of financial fraud at your company by being aware of these convictions or debt problems.

How to Get Ready for a Background Checks

Knowing the information that a potential employer might find is the greatest approach to get ready for a profile check.

  • Obtain a credit report

Get a copy of your credit report and examine it ahead of time for any mistakes in your background information. Dispute any inaccurate information with the creditor or other source if it exists.

  • Examine your records 

Get a copy of your driving history from your state’s department of motor vehicles to check it out. Do the same with your other records, such as your academic and legal records, and others.

  • Check your personnel records

Ask your past employers for copies of your personnel files, if they are still available. Be sure to anticipate what your references will say about you.

  • Protect Your Privacy

Additionally, you should exercise caution when posting on social media and other internet venues. There is a great likelihood that someone will discover material that could be detrimental to your job. Your best course of action is to use caution while posting and to assume that, regardless of whatever privacy settings you may have, everyone may see what you publish.

  • Be truthful

Most importantly, make sure all of your applications and resumes are true and accurate. If you lie, you might not immediately be discovered; nonetheless, the truth will ultimately surface. Because you believe your resume may benefit from some improvement, it is not worth not getting hired or fired.

What Does A Background Check On An Employee Cost?

Which elements are included in the background report will affect the price. Background checks that only include criminal records searches are frequently less expensive than reports that also include information on job, education, and drug testing.

How Long Does it Take to Run Background Checks?

Usually, it takes 24 to 72 hours to finish a pre-employment profile check. The length of the check will determine how long this process will take, though. Although instant background checks are available, they use data from public sources that may be unreliable or lacking certain details. The most reliable background checks make use of the original county-level criminal record data. Some counties may take a few days to undertake more research while others may offer data in less than a day. Only 2/3 of US counties have online databases for criminal records, which is the cause of these delays.

5 Benefits Of Employee Background Check

Background check services are now essential to the efficient management and operation of a firm due to the rise in identity and personal theft.

Background checks for employment provide a number of benefits:

  • Better Hiring Quality: Using a thorough employment profile check service can improve the caliber of candidates you bring on board for your employee efforts.
  • Improved Regulatory Compliance: When employing new staff, take into account collaborating with an expert employment background check company. It is critical to realize that if your company employs this kind of screening method, it may continually run afoul of the law and incur fines.
  • Enhanced Security and Safety: As a business owner, you should be aware that employment profile checks reduce the possibility of workplace violence by disqualifying applicants who pose a threat to the workplace.
  • Reduction in Employee Turnover Background checks for new hires will greatly reduce the amount of undesirable turnover.
  • Reduced Negligent Hiring Risks: Negligent hiring entails a high level of risk and frequently makes your company personally liable for the actions of your employees.

Background Checks on Employees: The Need for Them

Through an employee background check, you have the chance to verify the data stated on the job application. Employee background checks can also enable the verification of enrollment dates, academic degrees, and certificates, as well as detailed information on former employment. All job applicants should undergo employee profile checks for the following four reasons:

  • To give employees and clients a secure working environment.
  • We reject candidates who have hidden agendas.
  • To remove uncertainty from the hiring process
  • It is insufficient to rely solely on instinct.

Final Words

If your business has a compliant employment background check system, you can evaluate candidates fairly and consistently. The laws governing employee privacy and security should change and develop together with your screening process. Employing a third-party provider of employment solutions, like SunBD, enables firms to take advantage of our expertise in developing thorough screenings while also speeding up the hiring process. To find out more about how we can assist you with your employment verification needs, get in touch with us right away!


1. What information comes up in a background check?

Verifications of identity, job, credit history, driving records, criminal histories, and qualifications are all part of a standard background check. The kind of background check you want conducted will, however, affect this.

2. How do I go about running a background check on my employees?

  • Inform the applicant that a profile check will be performed.
  • Find out which information you are permitted to obtain in accordance with the rules of your State.
  • Select a Consumer Reporting Agency that is licensed (CRA).
  • Make sure the CRA you select complies with the FCRA.
  • Engage a CRA and ask for a report.
  • Make a hiring judgment after reviewing the background investigation.

3. How exactly do background checks work?

  1. Maintain a uniform profile check procedure.
  2. Obtain legal counsel.
  3. Give candidates a chance to comment on any facts you discover.
  4. Utilize only FCRA compliant services.
  5. Understand the distinction between reference checks and consumer investigation reports.
  6. Use profile checks on all applicants, not just a select few.
  7. Pay close attention to all the data that is gathered.
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