The 5 Most Common Mistakes Small Businesses Make With Background Checks

The 5 Most Common Mistakes Small Businesses Make With Background Checks

The 5 Most Common Mistakes Small Businesses Make With Background Checks- 12 Dec

Do you know what’s in the background of your employees? If not, you could be making a big mistake. Small businesses don’t conduct any background checks on their employees. This leaves them open to several risks, including theft, fraud, and even violence.

Read more: How Can Background Checks Verify Employment?

We will discuss the five most common mistakes small businesses make regarding background checks. We’ll also provide tips on how to avoid these mistakes and keep your business safe!

1) Not Checking Criminal Histories

The biggest mistake when conducting background checks on potential employees is overlooking criminal histories. Small business owners are often so caught up in the race to hire new talent that they need to remember to do a full sweep of the applicant’s past. Unfortunately, not checking criminal records can lead to severe legal and financial repercussions if an employee with a criminal history is hired. This is why looking into applicants’ criminal backgrounds before offering them the job is essential.

2) Not Knowing FCRA Regulations

The Fair Credit Reporting Act (FCRA) is a federal law that regulates how employers can use background checks for hiring purposes. This includes informing the applicant of when and why a check will be conducted and securing written consent from them before doing so. If small business owners are unaware of FCRA regulations, they may be held liable for any violations. That’s why employers must familiarize themselves with the FCRA and its rules before conducting background checks.

3) Not Updating Policies Regularly

Small businesses must keep their policies up-to-date to ensure compliance with state and federal regulations when it comes to background checks. It is essential to review background check policies annually or after significant changes to ensure they are relevant and up-to-date. This will help businesses remain compliant and avoid potential legal issues. Additionally, making sure policies are updated regularly can also help improve accuracy in the screening process.

4) Not Screening All Applicants

Small businesses must also be careful to screen all applicants, not just certain ones. Employers cannot pick and choose which candidates they will or will not run a background check on; they must follow a predetermined selection process to ensure compliance with the law. Additionally, employers should also consider running regular background checks on current employees, as this can help detect any potential changes in behavior or performance indicative of a more significant problem.

5) Not Using the Right Technology

Finally, small businesses should use the proper technology when performing background checks. Many employers rely on manual processes when conducting background checks, which can be time-consuming and costly. By utilizing automated solutions such as PSI Background Check, employers can quickly and easily verify information on potential hires or contractors, helping to ensure that the background checks are completed accurately and efficiently. Additionally, automated solutions can help small businesses comply with applicable laws, regulations, and best practices in their particular jurisdiction when conducting background checks.

Call Total Reporting for the best employment background check service. We use the latest technology to give you a comprehensive report quickly and easily. Contact us for more information on how we can help your business run more efficiently.

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