The yearly expense of employee fraud in American businesses is estimated to be around $652 billion. A single occurrence of occupational fraud can lead to losses ranging from $10,000 to $500,000 for a company. Furthermore, this only includes the amount stolen and not the additional costs that can quickly add up.
The costs of fraud can escalate quickly, resulting in a loss of time, money, productivity, reputation, and customer relationships for companies. The latter being the most impactful consequence–money can always be recouped, but not when customers are afraid to give you their business.
As an employer, it's important to know how to perform a proper employment background check. By conducting background screenings for potential employees, you can protect yourself and your business from hiring people who may cause damage to products or reputation.
Employment background checks can help ensure that your workplace is safe and secure. Here are some of the best places to conduct employment background checks:
Background Check Companies
Background check companies, like Health Street, will give you access to all of the information that you need about your candidate to make an informed hiring decision.
Employee background check services from Health Street are easy-to-use, affordable, and can provide you with all sorts of details on potential hires, including criminal records, driving records, and even credit history.
Government agencies can provide background checks as well, but they’re typically only available situationally for reasonable cause. For example, according to a report in The Salt Lake Tribune, recently, a bill was passed by the Utah Legislature that mandates criminal background checks for public library employees across the state. Once approved by the Governor, the legislation would require public libraries to impose criminal background checks on future and current employees.
The new legislation is set to take effect on July 1, 2024. Additionally, the bill stipulates that financial aid will be provided to Utah's smallest counties to cover the cost of background checks.
Government agencies conduct more thorough investigations than private companies due to their access to a plethora of private information. They also tend to be faster since they have fewer clients and larger budgets than businesses do. Thus, they can dedicate more resources to each case.
Finally, and perhaps most importantly, government agencies offer anonymity when conducting these types of checks so that employers don't know who provided certain pieces of information used during the process (like criminal records).
Online searches are convenient but may not be as thorough as other options. Online searches may also only give you part of the picture, so it's important to supplement their results with other sources.
For example, if a job applicant has been charged with a crime and there is no conviction listed in the online report, then it could be because there was insufficient evidence or witnesses at trial. However, those details would not be included in this type of report.
Online employment background checks should still be considered as one step toward getting an accurate picture of an applicant's criminal history (or lack thereof).
Professional organizations like law firms or accounting firms that have access to private information (such as court records) might be able to help you get an employment background check done at no cost.
Professional organizations can also offer their background screening services on behalf of their members and clients. This can be useful if there aren't any other options available near you. Just make sure that these services are provided by qualified professionals who know what they're doing.
Personal references can be a great resource for employers to use in hiring. They can give you an idea of how someone interacts with others and how they might fit into your office culture. However, personal references should be used cautiously because they may not always tell the whole story.
Personal references can also be biased or inaccurate if people are only giving positive feedback about someone's personality or work ethic without providing any details about their background check results.
Steps to Getting an Employee Background Check Done
When it comes to protecting yourself and your company's reputation, it's important to know where to turn for employment background check services.
The first step is knowing the legal requirements for background checks in your state. In some states, employers are required by law to conduct pre-employment screening on all job candidates. In others, only certain industries or positions have this requirement.
According to a report on Honolulu Civil Beat, a new bill under discussion in the Hawaii Legislature could require job applicants to undergo more extensive scrutiny. Those applying for state jobs involving close interaction with minors and vulnerable adults would need more rigorous background checks.
The director of the department mentioned that this increased scrutiny would benefit the public, specifically those who receive child welfare, child protective, extended foster care, and higher education services from the department.
Next, you should consider what exactly you are looking for in a background check service: Will the report contain criminal records? Are there any other types of information that would impact your decision on whether or not an applicant should be hired? How many years' worth of history should be included in these reports?
Finally (and perhaps most importantly), ask yourself who will handle this process on behalf of your company, and how do they plan on doing so?
We know how stressful it can be to find employment, especially with the rise in cybercrime and identity theft. That's why we want to help you find the right background check provider for your needs.
We have compiled a list of the best places to get employment background checks and other screening services. Whether you need information on potential employees or current ones, our guide will help you find what works best based on your budget and needs.