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Merrin Muxlow
Merrin is a writer, yoga instructor, and law student based in San Diego, California. She writes extensively for Resource Nation, an online resource that provides expert advice on outsourcing and purchasing decisions.  Resource Nation matches business owners and entrepreneurs with business service providers in 100+ categories, from payroll processing to postage meters.  

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Background Check Basics: What Every Employer Needs to Know
By Merrin Muxlow | Published  08/14/2009
As a marketing professional, you probably know that your business’ most important assets are usually intangible. But it might surprise you to know the true costs of your most important “purchase”- a new employee. One estimate places the cost of hiring at up to a third of a person’s salary. Hiring the wrong employee can be even more expensive: some estimates place costs at up to twice an employee’s annual salary. Smart hiring decisions depend not just on cold, hard facts, but also on how well a prospect “fits” with your organization.

Though employee interviews, conversations with references, and trusted referrals are all very useful when it comes to hiring, sometimes they are not enough. In some cases, a professional background check might be necessary. If you’re in an industry that requires advanced professional certifications or association memberships (medicine, accounting, law, engineering, etc.) or own a business where criminal background checks are mandatory (for example, the trucking industry, or positions where the employee will have contact with children, the elderly, or the disabled) you’ll probably need a more extensive check.

Many businesses choose to outsource this service. Though public records including bankruptcies, previous addresses, and home ownership information can be obtained for free, it is time consuming to find. Businesses that need specific information on a prospective employee often find that using a professional background screening service is the easiest way to find it. Employment screening companies offer service packages for every business need. You can even perform as search by state, by county, or request verification of specific information. Most employment background checks actually verify information an applicant has already provided.
You can use background service to verify or obtain the following information:
  • Social Security numbers
  • Criminal records
  • Civil judgment records
  • Driving records
  • Credit reports
  • Employment verification

The most basic background check is a Social Security number and address search. With this information, you can verify an applicant’s identity for a more thorough search (education records, etc). For the majority of searches, you must notify the prospective employee if you plan on using the above information for hiring decisions.

Whether you’re using a background check to verify employee qualifications or to check on the accuracy of claims included on an applicant’s resume, using a background check service can be one of the best ways to make sure you comply with federal laws and regulations that govern hiring discrimination. For more information about employee background checks, check out our Buyer Guide on the Resource Nation website.
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