How to Use Background Checks to Save Money in the Long Run
Whether you are using background checks as part of your business model, or for personal reasons, there are numerous ways that they can save you money. Background checks are a fast, easy, and relatively inexpensive way to protect yourself, your business, and your personal finances.
How background checks can save your company money
Poor hiring decisions can harm far more than just the bottom line. Hiring the wrong person for a position can leave other employees disgruntled and upset, costs you valuable clients or customers, and leave you exposed to litigation risks.
An employee background check, available from Check People or any number of other online sites, can give you valuable information about potential job candidates. Most background check sites offer relatively standard information which includes:
- Identity verification
- Educational background
- Employment history
- Drug screen results
- Criminal history
Hiring the wrong person can have significant financial repercussions for your business. A few of these include:
- A decrease in morale and productivity stirred up by the bad hire
- Training a new employee takes a significant investment in time and money. You risk wasting those resources when you hire someone who does not work out
- A bad hiring decision can do significant damage to the reputation of your company
Benefits of doing an employment background check
Employment background checks encourage more honesty in the hiring process. When candidates know that a background check will be included in the hiring process, many candidates will pass on the job, leaving you with a better candidate pool.
If certain things in a person’s past would disqualify them from the position, and you can identify those right away, you conserve resources to focus on candidates that might be a good fit. For example, if the job requires driving a company vehicle, and your insurance requires that there can not be a DUI in the past five years, you will know that before you get very far into the hiring process.
A history of workplace crimes such as violence or theft poses a substantial hazard for any business. A background check that reveals these types of issues can save you from a potentially catastrophic bad hiring decision. Background checks can help you achieve your goal of providing a safe workplace.
Verifying past work history and education is crucial for jobs that require experience or a certain level of education. Confirming work history and education was once a tedious process, but most background check sites can now return this information within a matter of minutes.
Impact of background checks on your personal finances
When discussing the cost savings of background checks, most people think of employee background checks. However, there are several ways that a background check site can help protect your personal wealth and safety.
When starting a new relationship, a background check can offer assurance that the person you are becoming involved with is who they claim to be. The safety factors of doing a background check are apparent, but what does that have to do with your money?
If a friend or a romantic interest needs to borrow money for a short time, most of us want to help. We have probably done things like that in the past, and the money was promptly repaid as agreed. When it is a new person in your life, and you have done a quick background check, you might find that they have not been honest with you about their history. In that case, asking for money is a red flag, and you refuse to give them the money.
Con artists and scammers become more sophisticated with each passing year, and intelligent, cautious people can still be taken in by their scams. The information in a background check can often help you identify potential con artists, giving you a heads up to be extremely cautious in how you proceed.
Genuine investment opportunities that are a once in a lifetime opportunity do come along, but they should always be vetted carefully. A background check on everyone involved in the investment should be the first place you start. Red flags for running away from a deal would include:
- Anyone involved has a history of theft
- Bankruptcies or liens against homes or other property
- The person presenting the opportunity makes claims about their past that prove to be false
- Other people report having been scammed by this person or group of people
Before investing in someone else’s plan, even if it is someone you know, a background check is part of doing due diligence before you get involved. Those with legitimate propositions should have nothing to hide and be open to having a background check done. Running a background check is an easy tool to make sure you are making an informed decision.