An Easy Guide to Background Checks for Small Businesses 2018 Version
Small businesses take a lot of hard work and finances to build. In fact, 59% of small business owners used their own personal savings or retirement fund to start their business. Since you’ve put so much work and money into your business, why jeopardize it by making a bad new hire?
A bad hire can seriously impact your business’ bottom line. A CareerBuilder survey found that the wrong hire costs small businesses $11,000 on average. Many small businesses don’t have the financial resources needed to deal with a bad hire. So, how can small businesses make the right hire?
By running background checks. Running a background check ensures that a potential new hire has the skills and experience needed to succeed at their job. It also makes sure that a job applicant is a safe addition to your workplace. Since background checks are a great way to find the right new hire, you’ll want to use them in your hiring process. How can you use background checks to help your small business?
In this article, we’ll learn why small businesses need background checks, which background checks are the most important, and how small businesses can run background checks.
Why Small Businesses Need Background Checks
Background checks are an essential way to keep your workplace safe. A criminal background check shows you if a job applicant has a history of violence or crimes that they may repeat at your office. This stops you from hiring someone who might hurt you, your existing employees, and your clients.
Background checks also protect you from negligent hiring lawsuits. It serves as a legal basis to show you put reasonable effort into checking if your new hire was safe around clients and employees.
Finally, background checks ensure you get the help you need to grow your business. It shows if job candidates have the skills, education, and experience required to do the job well and help your business thrive.
But which background checks are the most important for small businesses to run?
Background Checks That Small Businesses Need
Because small businesses differ in what jobs they have open, your company may require additional background checks. But in general, here are the most important background checks that small businesses need to run and a short explanation of how they help small businesses.
But how can small businesses legally run background checks on potential new hires?
How Small Businesses Can Run a Background Check Legally
Multiple federal laws regulate how you can run background checks. In other words, you have to follow specific guidelines when running background checks on potential new hires. Here are some of the most important guidelines for running background checks legally.