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4 Ways Businesses Avoid Legal and Professional Liability Through Background Checks

Consideration was given for the editing and publication of this post.

Hiring new employees can be a major headache. Beyond the time and energy involved in finding the right talent, businesses need to do everything they can to protect themselves from a legal standpoint when it comes to hiring.

For this reason, it’s recommended that businesses run background checks on any potential new hires to provide themselves with peace of mind.

If you’ve been sleeping on background checks for your hires or think that they’re totally unnecessary, it’s time to rethink how failing to do so could potentially leave your business vulnerable to major problems. Consider the following reasons why background checks are so important for small and medium-sized businesses alike.

Keeping Criminal Activity Out of Your Business

Running a criminal background check on your potential hires is a no-brainer if you want to protect yourself, clients and customers alike from criminal activity. At the end of the day, business owners must put safety and security above all else if they want to keep their companies running for the long-term.

It should be clear that running a background check is not about discrimination or scaring your hires. If someone is wary of a background check then it’s possible that they might have something to hide. On the flip side, those who are willing to subject themselves to a background check not only trust your judgment but show a willingness to work for you.

Guaranteeing Honesty on Behalf of Your New Hires

On a similar note, background checks help you avoid any trust issues or red flags throughout your new hire’s personal and professional histories. You can essentially confirm their honesty regarding issues such as…

    • Reasons why they were fired or let go from their previous jobs

    • Making sure that they aren’t embellishing any jobs, roles or certifications

Beyond confirming what you need to know about your new hires in terms of qualifications, these checks clue you in to whether or not workers are upfront with you before the even reach day one. After all, any potential dishonesty is a major red flag for employers.

Avoiding Legal Nightmares

Some professions require background checks as a means of protection from legal liability. For example, teachers have to undergo extensive background checks to ensure that they’re fit and safe to work with children. Similarly, jobs which require workers to operate machinery require that workers have no histories of negligence or DUIs.

In the case that you did hire an employee with a questionable background, you could land yourself in major trouble from a legal standpoint for not doing your homework beforehand. When in doubt, it’s better to be safe than sorry.

Reducing Turnover Rates

Simply put, hiring employees with clean records means that they’re more likely to stick around. People with flaky employment stories or lots of holes in their professional lives typically don’t spell good news. Although people certainly deserve a second chance at work, it never hurts to know who exactly you’re dealing with before you hire them.

There’s a reason why background checks are so common for employers these days. Next time you need to bring someone new to your team, consider these benefits to protect yourself and your business.