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5 Benefits of Background Checks
1. Improve Regulatory Compliance
There are several layers of regulation that employers face during the hiring process. There are state and federal guidelines for issues such as eligibility and discrimination. Some industries such as health care and financial services have industry-specific state and federal regulations from governing authorities. There are also licensing and certification requirements. If a potential employer doesn't comply with these regulations, there can be steep fines or they can be placed under a restrictive continuous audit or probation by a regulator.
It can be very difficult for companies to ensure that all of the compliance requirements are met. There are different parts of the background check that must be completed with strict guidelines to ensure fair employment practices and avoid discrimination claims. These range from the criminal records searches to the credit checks. Using a qualified company to do the automated background screening solution can better mitigate compliance and litigation risks. A company like, United Screening - a division of Sarma, can provide the necessary reminders and parameters, and streamline the regulatory requirements for workers.
2. Increase Safety and Security
A major reason to conduct background and reference checks is to avoid different types of legal liability to the employer or to others. This includes harm to:
- Other employees by sexual harassment or workplace violence.
- The organization's customers by, for example, sexual assault on business premises.
- The public by negligent driving.
- The employer's business through financial loss or image and reputational issues.
A justifiable reason to do in-depth criminal records searches of job applicants is to have a defense of legal claims, such as negligent hiring. A multilevel jurisdictional criminal records search can be strong evidence that the employer exercised due care in hiring.
Another benefit of a healthy background screening program is being able to identify potentially harmful individuals within an applicant pool. By doing drug testing, and state and national criminal, credit, and sex offender searches, employers can better discover and investigate any red flags in their candidates. Health care organizations will also want to check for industry sanctions and medical malpractice events to prevent the risk of negligence and keep compliance with health care authorities.
A thorough review of background check reports can also reduce the instances of on the job fraud, negligence, theft, drug use, violence and abuse. Negative actions such as these can result in fines, expensive litigation and severe damage to the brand reputation of a company. However, there are also state-by-state restrictions on how employers must conduct the above testing and screening procedures. A company like, United Screening - a division of Sarma, can bundle all of these screening practices together in one system to comply with background reporting requirements.
3. Reduce Employee Turnover
All employers want to avoid an overall poor quality of hire. They also want to avoid a high incidence of employee turnover.
A company like, United Screening - a division of Sarma, can help an employer to avoid the lost time and costs of making bad hiring decisions and dealing with the resulting employee turnover. Reviewing the results of drug testing, criminal and sex offender checks, and even credit history checks during the hiring process can help employers to make their decisions. This information helps to evaluate the integrity of a job candidate. Background screening will quickly eliminate those workers who have a history of harmful or negligent behavior, or who may repeat that behavior on the job.
4. Maximize productivity
As the saying goes, "Hire the best and reject the rest". Past performance is a strong indicator of future performance and can reveal an individual's professionalism, productivity, job skills and interpersonal communication abilities. A reference check helps distinguish between a true high flier and a mere poser.
5. Data Verification
Verifying the information provided by the applicant regarding his or her education and credentials, employer history, tenure, and other data will not only confirm required qualifications but can provide some insight into the applicant's reliability and motivation.A large amount of employers uncover lies or misrepresentation on a candidate's resume or job application during the screening process.