New hire background checking

While we hear daily tales of gloom-and-doom layoffs, there are still strong well-managed businesses that cater to the real needs of both consumers and businesses. Looking at Monster.com or help wanted ads reveals many businesses needing to hire quality help. I’m sure every ad yields an overload of responses. It is definitely an employer’s labor market.

With so many people to choose from there is no reason not to pick the absolutely best person for the job. Most small employers rely on resume and application information combined with gut instinct after cursory interviews. Few small businesses exercise due diligence in background checking, other than sometimes making a call to a prior employer or reference.

Unfortunately, most prior employers will not reveal any information beyond dates of employment for fear of being sued for defamation. I understand that some states now have laws protecting employers from frivolous defamation lawsuits to encourage sharing of proven bad behaviour with potential employers.

When hiring someone with a prior history of sexual harrasment, abuse, or a criminal record, the new employer may well be at risk for not having learned of the bad behaviour.

Money is well spent on hiring professional firms to do background checks prior to hiring a new employee, especially if:

• Your business has proprietary information or deals with confidential information which, should it be misappropriated, could harm you or a client
• The person will be involved with financial data, accounting records, payroll, accounts receivable, accounts payable, or handling cash
• The person interfaces with the public – especially if they go on site to customer homes
• You are in the health-care industry
• The person will have any contact with children

There are established firms specializing in employee background checking which may include: drug testing, searching for criminal records, verifying education credentials, credit checks, prior employment verification, and more. The cost can range from around $50 to several hundred dollars, but is a small investment if it saves you from hiring the wrong person. The National Association of Professional Background Screeners, www.napbs.com, is a starting point in locating a firm to conduct your testing.