Why Do Employers Conduct Background Checks

Why Do Employers Conduct Background Checks?

With an ever increasing amount of employers carrying out background checks on their employees we ask is this purely because “it’s what everybody else is doing” or is it because there are genuine benefits to the process?

If you ask an employer who carries out background checks you’ll probably find that they started off doing them because of the first reason, however, over time they have started to see the following advantages from the process.

Improved Quality of Hire

In a survey of employers and organisations, 67% said the quality of their employees had improved as a result of background screening. If an applicant fails to disclose any criminal history it could potentially lead to increased risk of legal and financial risks for the hirer. Many organisations carry out background checks on potential employees in order to uncover the undisclosed information early enough to prevent these legal and financial disasters.

Enhanced Regulatory Compliance

44% of employers found that background screening helped to improve regulatory compliance. A background checking provider with in-house compliance expertise, as well as intelligent built-in compliance tools, can help an organisation to implement an effective recruitment and screening programme.

Improved Workplace Safety

42% of employers agreed that carrying out background checks helps to increase workplace safety and security.  Additionally, 16% of employers reported screening reduces employee theft and 11% state they reduce workplace violence. Employers can conduct background screening to increase hire quality and better protect property and workers against damaging workplace accidents, violence and theft.

Reduced Negligent Hiring Risks

29% of employers said carrying out background checks had contributed towards the mitigation of negligent hiring risks. These claims arise when an employee cause’s harm to a co-worker and it can be proven that the employee has a previous history of these types of offences. The employer would have discovered this if they had carried out ‘due diligence’ checks and would be liable for negligent hiring damages if the allegation is proven.

Other reasons

Employee turnover, employee theft, workplace accidents, workplace violence, absenteeism as well as improving the organisation’s reputation.

Although these checks do cost the employer to conduct, many see the expense as a drop in the ocean compared to the costs they could incur if they were to be involved in a negligent hiring lawsuit, not to mention the damage to their reputation.

Employment Screening



Source: HireRight

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