Employee Background Check And Its Benefits In Small Business

by Admin on April 11, 2013

8244936458_13f3d7a33bBusiness owners have to be very careful about how and where they spend money for their business, especially if it is just a small business or a startup. A bad spending decision can put the future of the business in dire risk, even more so than if it were a medium or large company. For this reason, it is common to see business owners think twice before performing a complete background check on their potential candidates.

After all, background checks cost money and come with the inherent risk of poking too hard and giving the candidate cause for suing the business instead. However, no matter how useless it may seem, an employee background check is always a good idea, and here are some of the benefits it offers:

No bad hires

A candidate’s prior work history gives a good idea of how well s/he will perform with you, and that is what a background check does for you; it brings up the information you need to know about a candidate so you can find out if his/her behavior in the workplace will be acceptable. Verification of educational qualifications, prior work experience, and criminal records can reveal potential problems in that candidate.

Reduced turnover

As a business owner, it is important to understand that replacing a bad hire can cost you up to five times the salary of that job. There are a number of direct and indirect costs involved in hiring and training a candidate, and all that goes to waste when you recruited the wrong candidate in the first place. There are the administrative, legal, and management costs too, and none of them are small, plus additional costs incurred if the bad hire ended up steeling or damaging materials, funds, and customer goodwill during their tenure with you. When you have a high employee turnover, these expenses go up, but choosing the right people for your company can help reduce the turnover rate and save this money.

Better quality applicants and employees

Another benefit of employee background checking is that you get to see an increase in the quality of applicants. When people know that you are doing background checks for jobs, those with discrepancies and information to hide are discouraged from applying. As a result, you get few applicants with a better overall quality.

In the end, background checks are not only useful, but necessary procedures for any company, whether it is small or large. For small business, it translates to reduced business costs and greater efficiency in the long run.

About The Author

Amy writes for originbackgroundcheck.com a professional employee background checking and drug testing in USA. To know more kindly visit their website.

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