Why Employee Background Check Matters in Business

Today’s workforce is becoming increasingly global, with businesses forming cross-border alliances and expanding their business operations internationally at an unprecedented rate. This global talent pool has made borderless trade an almost limitless resource, making the need for pre-employment checks essential. In addition, performing thorough pre-employment checks can help businesses identify and assess candidates and reduce the risks of liability, theft, violence, and embezzlement. Here are just a few benefits of using a background check:

Reduces liability

The costs associated with negligent hiring are staggering, and no business is exempt from this responsibility. It is the responsibility of the employer to protect its clients and employees through an employee hr background check. Therefore, conducting an employee background check is crucial. Failure to do so increases liability and can also result in legal costs. It is even possible to face liability for an employee’s wrongful termination. Using an employee background check reduces the risk of such harm by ninety percent.

A criminal background check is essential for companies that want to protect their company from legal liabilities. A negligent hiring claim can be extremely costly, but it can also damage a company’s reputation and lower morale. In addition, the check may uncover serious problems, such as substance abuse or reckless behavior. It may also reveal the dishonesty of an applicant. This information could be vital to the health and safety of the workplace.

Reduces theft

Whether your company is small or large, preventing employee theft is essential for business owners. The global cost of occupational fraud is estimated at $3.7 trillion per year. This means that the average employee steals about 5% of your revenue. Therefore, conducting an employee background check is necessary for your human resource management process. Below are three ways to reduce theft at your company. All of them help your business protect its assets.

The first way to reduce the risk of theft is to check a candidate’s history. If a candidate were fired for stealing, they would not be a good fit for your business. Another way to reduce this risk is screening out applicants with a criminal record. A recent study from Krohe found that such screening tools minimize the risk of theft by as much as 35 percent. However, it is essential to note that a candidate could cheat the system by taking the test several times until they pass the test.

Reduces violence

One of the biggest challenges facing many organizations is workplace violence. It is a problem that involves both employees and non-employees, and it has been well-documented that hospitals have been targeted in recent years. Employers also struggle with how to prevent violence by third-party non-employees, whose behavior can be detrimental to the workplace. These are the ways to reduce workplace violence that will help employers ensure that their workplaces are free from any form of violence.

By using pre-employment screening, employers can reduce the risk of workplace violence. While the process can be costly, it helps employers prevent dangerous situations before they arise. Pre-employment screening can identify individuals with a violent history and behavioral problems. Additionally, thorough background checks provide employers with vital information about the qualifications of applicants. Ultimately, this prevents the employer from hiring ex-offenders or other people with violent pasts.

Reduces embezzlement

There are several measures you can take to reduce embezzlement in business. If you own a small business, you may want to put yourself at the register and keep all money out of employees’ hands. This eliminates the temptation and opportunity. You should implement safeguards such as regular audits and inventory controls for larger businesses. For example, an electronic timesheet system can identify suspicious patterns. An employee can create a fictitious invoice, or a payroll clerk may create false entries for supposed overtime.

Small businesses, or SMBs, are particularly vulnerable to employee fraud. This is because smaller companies typically have fewer resources than large corporations, and there are no formal oversight mechanisms to prevent fraud. Consequently, the impact of employee fraud on SMBs is often more damaging than that on large businesses. Because of these shortcomings, business owners need to adopt more robust security measures to protect their company’s finances. Tips for protecting your company’s finances can be found online.

Herminia Wade

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