New Employee Background Check - A Smart Risk Management Strategy

The biggest threat for a company comes from within. Over 80% percent of workplace crime is carried out by employees, ranging from fraud and theft, to assault and bribery. In addition, according to this study by the Australian Institute of Criminology, 30% of businesses close because of it.

The biggest threat comes from hiring new employees.

This is why it is paramount to thoroughly check new employees before they enter the workplace in order to eliminate the threat which might eventually arise. "Better be safe, than sorry", as they say.

Here's why you need to screen your employees before hiring them:

You lose time and money

From all the things that can come to you as a consequence of hiring someone you shouldn't, this is the best case scenario. But if you're a small business, it will harm you, nonetheless. Companies invest time and money to find the right candidate. The new employee will need further training, which takes up extra time and money. If the person has a suspect background, and you find out too late, your company suffers a financial loss.

Bad public image

When you're a small business owner, a lot of business comes via reference. When your employee robs a customer or hurts them in any other way, it can be a final nail in the coffin. Say you own a small spa center, and that one of your receptionists is a thief and robs your customers by taking their money or personal belongings during their treatment. The customers may not be able to prove it, and will not create a fuss, but they won't be coming back, that's for sure. And you can bet your last dollar that their friends won't come either.

Employee safety

A company should provide a secure environment for all employees to feel safe at their workplace. Simply by knowing that a background check procedure is mandatory during a hiring process, will create an atmosphere in which everyone feels safe.

You're required to do it by law:

In some countries, when working with children or old people, individuals are required to go through a national police check. These regulations are issued by local governments and companies are required to follow any of the procedures if they refer to their industry.

What if they do have a criminal history?

Once a person is checked, a misdemeanor, disqualified driving for example, or a felony may show up in the report. It is up to the employer to determine if the offense is relevant for the position, and if there is a risk to staff and customers. A person in charge of finances should not have a criminal record, but what if you are just looking for a gardener? In order to treat all applicants equally and fairly, a company can make a hiring matrix specific to the workplace, which would state the criminal activities company considers relevant.

If you do decide to hire them, keep a close eye. They say that everyone deserves a chance, but the best predictor of future behavior is relevant past behavior, and if you are a small business owner, you cannot afford any mistakes.

Did you know that Pepsi has been offered a Coca Cola recipe, stolen by its former employees, two times? Both times they refused the offer and alerted the police. Competitors are focusing on the customers, they are not a real threat anymore, the real danger is within your company.