Hiring the right people can make all the difference for an organization, but these decisions are rarely straightforward. Background checks can offer some much-needed clarity by verifying candidates’ information and reducing uncertainty in the hiring process.
For employers, the importance of background checks extends across the hiring process and beyond. Background screening can improve candidate quality, identify potential red flags, and lower the risk of negligent hiring, workplace incidents, and noncompliance.
In this article, we’ll discuss why background checks are important, what they cover, and other frequently asked questions about pre-employment screening.
Why Are Background Checks Important for Employers?
Background checks provide valuable information about candidates to help you make informed, confident hiring decisions. The scope of a background check can vary, but most screenings include some or all of the following:
- Criminal history
- Employment verification
- Education verification
- Motor vehicle records
- Reference check
For most employers, conducting background checks has become a standard part of the hiring process. About 95% of U.S. employers conduct pre-employment background screening, according to data from the Professional Background Screening Association and the HR Research Institute.
This same research also shows the most common reasons that employers choose to do background checks:
- Protect employees and customers
- Improve the quality of hires
- Protect company reputation
These benefits (and many others) have made background checks an essential part of hiring for most companies.
What Are the Benefits of Background Checks?
Background checks can help you make hiring decisions with more clarity and confidence. Here are nine reasons why background checks are important for employers:
1. Improve Candidate Quality
Background checks can help you attract and hire qualified candidates. By clearly communicating the expectations for background screening, you encourage trustworthy candidates to apply, improving the quality of your candidate pool.
This screening can also help you verify the quality of candidates you choose to hire. An applicant may look good on paper, but background checks help confirm they’re truly the right fit for the role and organization.
2. Create a Safe Workplace
Building a safe workplace is one of the biggest advantages of background checks. Pre-employment screening can flag potential risks that may threaten or harm clients, customers, and other employees. With this knowledge, you can make hiring decisions to strengthen workplace safety in your organization.
A comprehensive screening policy can help minimize the risk of workplace violence, theft, fraud, and other incidents. By reducing the risk of negligent hiring, you also protect your organization from costly claims and potential litigation.
3. Reduce Turnover
A bad hire can have ripple effects across an organization, lowering productivity and draining morale. Logistically, hiring the wrong person can also be a costly mistake. A CareerBuilder survey estimates the cost of a bad hire to be around $17,000 on average.
Conducting background checks can identify potential red flags before hiring, so you can make the right decision the first time. With a stable, trustworthy team in place, you can reduce employee turnover and spend less time — and money — on hiring and onboarding.
4. Build Trust and Transparency
A fair and transparent screening process can build trust across an organization. Employees know that everyone has been held to the same standards, which creates a culture of accountability.
Transparency in the pre-employment screening process can also improve the candidate experience. When you communicate clearly about what you’re screening for and why, applicants are more likely to have a positive impression of your employer brand.
5. Protect Company Reputation
Dishonest or untrustworthy employees can harm your company’s reputation. For example, cases of employee fraud or theft can cause lasting damage to customer relationships and public perception. Employee misconduct can also lead to costly litigation and financial losses.
Thoroughly vetting candidates can help your organization avoid these damaging situations. Pre-employment screening can help you identify potential risks before hiring, so you feel confident about who you’re bringing on board.
6. Maintain Compliance
In some industries, background checks are a requirement. Employers in healthcare, transportation, and other regulated industries need to perform background screening on new hires and employees.
A compliant background screening program can help your organization meet local, state, and federal regulations. Complying with these rules can also protect your company from fines and legal disputes.
7. Make Informed Hiring Decisions
More than anything, background checks can help you make well-informed hiring decisions. This screening allows you to confirm the information an applicant has provided about their identity, employment history, and credentials.
A background check report provides the data and information you need to make hiring decisions that lower risk and align with business goals. This independent verification can support better hiring outcomes for your organization.
8. Support Fair, Consistent Hiring
A consistent background check program can lead to more equitable hiring practices. Applying the same screening standards to all candidates in similar roles can reduce bias and support fair hiring.
With a structured screening policy in place, you can make hiring decisions based on verifiable data, rather than subjective judgment. It helps your organization maintain fairness and transparency in all hiring and employment decisions.
9. Strengthen Identity Verification
Unfortunately, some candidates lie on job applications. Employers need a way to validate information provided by applicants, especially with the increase in global and remote hiring. Recently, some fraudulent international applicants have been caught using fake or stolen identities to get hired for remote IT jobs.
Background checks can help you catch these inconsistencies early. Tools like a Social Security Number (SSN) trace and address history check can confirm that a candidate’s information matches what’s on the record. This validation can reduce the risk of hiring people who may not be who they claim to be.
FAQs About the Importance of Background Checks
Here are a few other answers to frequently asked questions about the importance of background checks:
Why do employers conduct background checks?
Employers conduct background checks to verify a candidate’s information and make informed hiring decisions. Beyond those benefits, background checks can support fair hiring practices, create safer workplaces, and reduce hiring risks. In some industries, employers must perform background screening to maintain compliance with standards and regulations.
When should you do a background check?
The timing of a background check can vary, but many employers choose to do this screening after making a conditional offer. Make sure you know the rules in your state or city, as many jurisdictions have ban-the-box laws that regulate when you can perform this screening.
How do you run a background check?
When running background checks, the best practice is to partner with a reputable screening provider. Background check companies offer support and expertise to make the screening process more manageable. Choosing the right screening provider can go a long way toward helping your organization build a fair, compliant screening program.
Partner with InCheck for All the Benefits of Background Checks
The importance of employee background screening extends far beyond verifying information. Background checks can help your organization reduce hiring risk, maintain compliance, and create a safer work environment for all employees.
If you’re ready to realize the benefits of background checks, InCheck offers reliable pre-employment screening services to help you make better hiring decisions. We can bring a deep knowledge of industry best practices, compliance expertise, and supportive service to your screening process. Reach out for more information about how InCheck can support your organization in building a comprehensive screening program.