5 Different Kinds of Background Checks and Why They Matter to Your Business
A business is only as effective as its workforce; for entrepreneurs, that wisdom is even more crucial to remember. You must complete your due diligence when building your team. A huge component of this is background checks.
Hiring the first suitable candidate you come across throughout the interview process can be tempting, but doing so could result in a costly situation further down the line. It can result in a hire who isn’t a great fit for the company culture and impact productivity, profit, and reputation.
There are a few different types of background checks. Here, we’ll describe five different kinds of background checks and why they matter. Let’s jump in!
1. Identity Verification
Identity theft is, unfortunately, a common phenomenon. Without identity verification measures, you could hire someone who has fabricated or stolen their identity. Many business owners are tempted to skip background screening entirely, often wondering ‘how long does a background check take?’ and ‘are background checks necessary?’. Don’t take the risk. Always verify the identity of your applicant.
2. Credit Background Checks
If your business operates in the financial sector or the job you’re offering involves significant financial responsibility., credit background checks are necessary. Fraud is rampant and sometimes is carried out by the same people you employ.
Credit background checks provide insight into your applicant’s financial health, which can indicate everything from how they’ll handle your company’s finances to how susceptible they are to bribery. Even if the offered role doesn’t directly involve handling money, you could learn much about your prospective employee’s reliability from their finances.
3. Criminal Background Checks
A criminal background doesn’t necessarily mean someone with a record would harm your business. It’s a vital part of rehabilitation that can actually benefit the workforce. However, you must still know who you’re hiring and where they’ve been.
Criminal history screening is essential if hiring them for a role where they will work with vulnerable people or handle sensitive information. The checks cover records of any arrests, convictions, felonies, or warrants, including pending and dismissed charges.
4. Qualification Background Checks
One glaringly obvious aspect of any hiring process is ensuring that applicants meet the criteria for the offered role. This relies almost entirely on qualifications, whether from previous education or work experience. Proving that a candidate possesses the necessary credentials can involve seeing physical documents and contacting previous employers/educators.
5. Reference Checks
Lastly, references are an aspect of background screening that can give you greater insight into how your applicant operates. You can learn directly from the source about managing this staff member by contacting previous employers.
Effective screening should involve asking questions about how the applicant works and how well they cooperated with other team members. At a basic (but integral) level, reference checks help prove your candidate has worked with the people they claim to have.
Screening, in All its Forms, is Vital
Regardless of the background screening process, it’s integral for providing you with an efficient team. Hiring the wrong person can have far-reaching negative impacts, from financial losses to severe reputation damage. Don’t cut corners when hiring new candidates. You will almost certainly regret it!
