Running a business can sometimes be juggling flaming swords. But I’m sure that the biggest challenge often lies in the trust. Every person you would employ would be your employee, but every person you hire is also your business partner. But once the trust goes misplaced, background investigations come in handy.
Now, you might be thinking it sounds a bit like overkill. No way! Background checks and investigations are your company’s safety net. The last thing you want to do is look the other way and potentially risk your business (or yourself). Whether you are hiring someone new or considering a business relationship, doing your homework can really pay off later.
In this article, we will discover the significance of background investigations for your business’s safety. We will discuss how it works, why it is really critical, and what may happen if you do not do it.
Why are Background Investigations Essential?
Background investigations shield your business from fraud, theft, legal issues, and even workplace violence. By checking someone’s history, you can:
1. Verify their identity.
2. Check for any records of having committed a crime.
3. Know the history of their employment and education.
4. Look for financial alerts.
5. Determine if they fit in your culture.
These are some critical steps, not just for business security but also when you’re hiring or forming a partnership.
So, how do background checks work, and why should you invest time (and maybe a little money) into them?
The Nitty-Gritty of a Background Investigation
Background investigations are not just a quick Google search or peek at somebody’s social media. This is a detailed, professional investigation to get you the facts you need.
Types of Background Checks
1. Criminal background check
This is the most important one. You would want to know whether this person you’re hiring has a criminal past or not, right? From theft assault to fraud, this is the check that may save your business from critical problems.
2. Employment history verification
Ever had someone say they were a manager at a huge company but then couldn’t prove it? Employment history checks make sure your candidate isn’t bluffing about their experience.
3. Education verification
Believe it or not, some people fudge their degrees. An education verification ensures that a diploma on their resume isn’t just a pretty piece of paper.
4. Credit check
This is more for certain roles, especially those handling finances. A credit check can tell you if someone’s in major debt or has had bankruptcies – potential red flags if they’ll be dealing with your money.
5. Reference check
Calling references is like hearing the behind-the-scenes scoop on someone. Past bosses or colleagues will give you a peek into what it’s like to work with that person.
Here’s a quick comparison of different types of background checks:
Background Check Type Purpose When to Use
Criminal Check Uncover criminal history Every hire, especially key roles
Employment Verification Confirm work history When hiring for experience-based roles
Education Verification Verify degrees/certifications Roles requiring specific qualifications
Credit Check Check financial responsibility Finance-related positions
Reference Check Gather insights from previous employers Most hires, particularly leadership
Why skipping a background check is risky business
Imagine hiring someone for an accounting role without a background check. They seem great, but six months in, you notice financial discrepancies. After an internal investigation, it turns out they’ve had multiple fraud convictions you didn’t know about. Ouch.
Not conducting background checks puts you at risk for:
• Theft and fraud: Financial crimes, embezzlement, and theft are real risks in many industries.
• Workplace violence: Unfortunately, violent incidents at workplaces happen, and they’re often linked to a person’s past.
• Reputational damage: If you hire someone with a shady past, it can harm your business’s reputation with clients, partners, and employees.
• Legal liability: Hiring someone with a criminal background in certain roles can open you up to lawsuits if something goes wrong.
Quick Tip:
Even if you’re in a rush to hire, don’t skip the background check. It’s like skipping an oil change – things might seem fine at first, but it could cost you big later on.
How to conduct a background investigation
Hiring an expert or professional service is your best bet when it comes to thorough background checks. While there are DIY options, the experts know where to look and how to find the most accurate information.
Here’s a basic process:
1. Get consent: Before anything, you need written consent from the person. It’s legally required in most places.
2. Gather the right information: You’ll need personal details like their full name, Social Security Number (or equivalent), and more to run checks.
3. Run the checks: Use a trusted third-party service to run the actual investigations.
4. Review results: Once you have the info, analyze it carefully. If something comes up, decide how significant it is in relation to the job or partnership.
Conclusion
To sum it all up, background investigations are a non-negotiable part of running a safe, successful business. They protect you from hiring someone with a questionable past and give you peace of mind that your team is trustworthy.
Frequently Asked Questions
Why is a criminal background check important for business safety?
A criminal background check can uncover past behavior that could be harmful to your business, such as theft, violence, or fraud. It helps ensure you’re bringing on someone who won’t be a liability.
Are background checks expensive?
Not necessarily. Costs vary, but considering the potential risks of not doing one, the price is often worth it.
Do I need to run a background check for every position?
It’s a good idea for most positions, but it’s especially crucial for roles involving sensitive information, finances, or leadership.
Can I run a background check without someone’s permission?
Nope! You must have written consent to run a background check.
What should I do if a background check reveals something negative?
It depends on the severity. A minor issue may not be a deal-breaker, but serious offenses should definitely be a red flag.