According to CNBC, 78% of job applicants lie during the hiring process. 36% admit to providing false information on their resumes. Pre-employment background checks help ensure a sound hiring decision and protect the employer from several potential risks. Background checks are an important, cost-effective way for employers to reduce turnover, improve productivity, and reduce legal liability.
A pre-employment background check is a reliable way for employers to verify claims made by job seekers during the hiring process. This can include education, certifications, and job history.
The employer must provide a safe workplace for their employees, vendors, customers, and visitors. For example, if there was an incident which occurs at the hands of an employee and puts someone’s safety in danger, the employer may face claims of negligent hiring if the employee at fault has a history of violence in the workplace. Pre-employment background checks can give the employer a better idea of whether or not the applicant is unfit for the position or may cause harm to others.
This Guide can help you understand how to comply with both the federal nondiscrimination laws and the Fair Credit Reporting Act.
Use this form to receive consent from your new employee to run a background check.
Have you considered conducting background checks as part of your hiring process? The practice is fairly typical in the banking and financial services industries, as well as for those who work with children, the elderly, or people with disabilities. If you’re wondering whether you should do so as well, you can take a look at our overview process by clicking the link below.
If you will be conducting background checks for your business, it is important to update this policy in your employee handbook. This download may be used (verbatim if you’d like) for your employee handbook.