The Essential Information on Background Checks Every Small Business Needs

Background checks can be a valuable tool for small businesses if they know how to properly utilize them. Here is some basic information that you need to know so that you can use background checks properly in your small background checksbusiness.

1. Background Checks Must Be Done Legally.

It is important when using background checks in your business to do so legally. You cannot discriminate in selecting individuals for background checks. Race, religion, sex, disability, etc. cannot legally factor into your decision to utilize a background check. A good rule that can save you a lot of trouble is to treat everyone equally.

When using background checks, you must also comply with the Fair Credit Reporting Act (FCRA) and any laws your state may have regarding the use of information during the hiring process.

The Equal Employment Opportunity Commission (EEOC) has a wealth of resources on legally applying background checks.

2. Background Checks Can Help Keep People Safe.

Background checks should be performed in order to help keep your employees and clients safe. In 2006, assaults and violent acts accounted for 9 percent of workplace fatalities. You may be able to reduce potential violent behavior or incidents by properly screening any candidates you consider hiring.

3. Background Checks Aren’t Perfect.

Background checks are a valuable tool to utilize in your small business, but they aren’t perfect. National databases could have as high as a 41 percent error rate. You need to keep this in mind, but don’t let it discourage you from using background checks.

4. Background Checks Aren’t Just About Criminals.

Most people think about criminal records when the topic of background checks arises, but that’s not the whole story. Background checks can be used to verify a person’s financial records, work history, education, and many other facets of life. Just because people don’t have a criminal history doesn’t mean they aren’t hiding something.

5. Use Social Security Numbers.

When doing a background check you should use the candidate’s social security number. Although criminal records are not identified by social security numbers, a lot of other stuff is. The candidate’s social security number can help uncover previous addresses, possible aliases, and other potential red flags.

If you are using a candidate’s social security number, make sure you handle that information confidentially and securely.

6. You Get What You Pay For.

The quality of a background check, like most things in life, can depend on how much you’re willing to pay for it. The internet is overflowing with quick and cheap options, but you should consider background checks to be investments. When you have a background check done you are investing in your business and your employees. You wouldn’t pinch pennies on safety equipment, so don’t do it on background checks.

As a small business owner, you need to be smart about how you run your business and utilize your resources. By using background checks you can further protect your business, employees, and clients. Background checks, when used properly, can help your small business flourish.

About Nate Goodman

Nathan Goodman is the bestselling author of The Special Agent Jana Baker Spy-Thriller Series. "A terrorist on the loose, a country in panic, and time is running out..." For a free copy visit the author's website. He's also a freelance writer and entrepreneur.