There are many different reasons to perform a background check. It’s not just to see if a resume is correct! You may be surprised to know what background checks can be used for. Here are 21 different reasons to perform a background check:
1. Check previous work history
This is the most common reason. You don’t want an applicant who lies on their resume in your work force! Hiring someone who is unqualified can cost your company a lot of money.
2. Check educational history
You can’t always get this with a standard background check, but knowing educational history can inform you further about the qualifications of a candidate.
3. Performing due diligence
If you bring someone onto a project that involves investors, you may be required to show due diligence to them in your hiring by providing background information. Showing that your hiring practices are good can bring in bigger clients.
4. Litigation purposes
Sometimes an employee slips through the checks due to fraud or negligence. Sometimes you may need to get a background check after the fact to provide information to lawyers and law enforcement.
5. Working with children
In order to get licensure for your business to work with children you will need to perform strong background checks. Teachers, day care center employees, bus drivers, and others are required to be screened before hire.
6. Protection for other employees
Your employees want to work in a safe environment. As the hiring manager, you play a role in making sure this happens by bringing in quality workers. To do this, you need background checks.
7. Checking for criminal past
Beyond protection for your company and employees against theft and violence, you may have other criminal behaviors you need to watch for.
8. Confirm licensure
Some positions require professional licenses and certifications. You can run background checks with the certification companies to see if someone is lying about possessing the skills you need for your business.
9. Check for drugs
Drugs are a common check before hire these days. A criminal check may check past activity, but a urine test will show you if there are problems right now. Anyone can get clean, but not everyone can stay clean.
10. Check for driving issues
This is another common check for people driving company vehicles. Your insurance company may require this information to keep your rates low, and people like to know that their goods are being delivered by careful drivers.
11. Military record confirmation
For certain positions, you may need someone with military experience. Sadly, there are people out there who fake military records, especially for prestigious positions like special forces. Fortunately, the armed services make it very easy to get record information.
12. Check for health issues that can affect job performance
The laws restrict gaining a lot of health information. However, with the applicant’s permission, you can investigate whether someone has any health issues that can affect job performance. This is mostly for positions that require extreme physical fitness.
13. Credit-worthiness for people in financial positions
When someone has access to the books in your company, you want to make sure they won’t go on a spending spree. Credit checks are common for executive positions and anyone working in the financial field.
14. Other court issues (liens/garnished wages/etc.)
Another thing that you will need to be aware of is any sort of legal issues that can affect payroll. Knowing whether a new employee will need to pay child support or back taxes and how much could help you decide whether that person will be able to live on the wages you’re willing to offer.
15. Security clearances
For government positions especially, security clearances may be needed. Getting these goes way beyond a standard background check, but it is easy enough to confirm whether someone holds a particular level of access.
16. Medical supply control
Many types of medication and supplies can sell for a lot on the black market. If you’re handling these types of goods in your company, then you’ll definitely want to screen your employees for drug issues or past thefts.
17. Before buying a business
Background checks don’t have to be limited to new employees. If you’re planning on buying a company, you may want to run a background check on the owners to make sure they’re not bilking you.
18. Checking investors before accepting their money
Likewise, if someone wants to come and give you a lot of cash to invest in your business, you may want to run a check on them to make sure they are a legitimate company. This is all part of due diligence.
19. Finding and clearing identity theft
Identity theft is on the rise. Someone may not know there is a problem with their identity records until you pull them for an interview. If you see very unusual activity, share it with your candidate and ask them about it. You could be saving someone’s reputation.
20. Clearing your own name
There’s nothing that prevents you from running background checks on yourself to see what can be discovered. You could find discrepancies that can be fixed.
21. Gain peace of mind
Finally, background checks give everyone peace of mind. Some may be annoying to undergo, such as drug testing, but having an independent third-party back up what someone is telling you adds that extra layer of trust that can make an interesting candidate into a sure one.