Why Should a Small Business Conduct a Background Check?<\/strong><\/h3>\n\n\n\nWe polled HR professionals and successful business owners for their thoughts on the topic to assist you make the call on whether or not to research the backgrounds of potential new hires. There are a number of factors to consider when deciding if background checks are worthwhile for your business, including ensuring a safe workplace, preventing fraud, and preserving client confidence. Here are some of the reasons.<\/p>\n\n\n\n
#1. Check Employment and Education Records<\/h4>\n\n\n\n
A small business owner would be wise to run a background check on a candidate’s employment and educational history to make sure their resume is accurate. While it’s likely that a candidate is telling the truth about themselves, it isn’t unheard of for people to lie, and for entrepreneurs, it’s best to be safe than sorry. In circumstances when high levels of knowledge are required to ensure worker safety, hiring a new employee who is unable to perform the essential functions of the job is a bad idea. An individual’s credibility and suitability for employment can be ascertained by a thorough investigation of their past.<\/p>\n\n\n\n
#2. Verify That They Are Not a Safety Risk<\/h4>\n\n\n\n
A Background check is a need for every small business. Trust between an employer and employee is essential from the start of any working relationship. If we are going to hire someone, we need to make sure they haven’t done something illegal in the past. Otherwise, our standing and influence will suffer. We cannot hire someone with a history of bank fraud who would use cutting-edge security measures fraudulently. But we shouldn’t write out an individual just because of their prior mistakes. Everyone has the potential to develop and grow, and everyone has made poor choices in the past. In addition, if a company, has a good feeling about them, they should hire them.<\/p>\n\n\n\n
#3. You Must Be Sure You’re Hiring the Best Candidate<\/h4>\n\n\n\n
Keep an eye out for red flags during the screening process that indicate something isn’t “quite right.” Employee turnover is extremely high in the present business climate, making it more critical than ever to find and hire the best candidates. If a potential employee refuses to submit to a background check, they probably aren’t the best fit for your company. Instead, seek out those who are open and honest about their qualifications and expertise.<\/p>\n\n\n\n
#4. Safeguard Your Startup From Danger<\/h4>\n\n\n\n
When compared to huge corporations, small businesses are more vulnerable to increases in their SG&A to sales ratio due to the hiring of even one employee. However, on top of that, small firms are more vulnerable to financial crimes like fraud, theft, and mismanagement. These dangers can be considerably mitigated with rigorous background checks on prospective employees. I think it’s even more important for a small business to perform a thorough background check than it would be for a larger company with more established internal policies and bylaws.<\/p>\n\n\n\n
#5. Maintain a Risk-Free Workplace<\/h4>\n\n\n\n
It is impossible to make educated employment judgments without conducting background checks. You can reduce worries and risks associated with any dangers an employee may offer by doing thorough background checks before hiring. The use of a pre-employment screening tool can help safeguard your business from liability claims by ensuring compliance with federal, state, municipal, and industry requirements.<\/p>\n\n\n\n
#6. Keep the Investors Confident<\/h4>\n\n\n\n
In order to give confidence to their investors, a small business should do thorough pre-employment screenings and background checks on all potential employees. Investors’ concerns about a terrible hire might be allayed by presenting them with a background check report on the individual, as this could affect their opinion of the company. Due diligence on potential employees is essential for the growth and prosperity of any small business.<\/p>\n\n\n\n
#7. Eliminate Unreliable Job Seekers<\/h4>\n\n\n\n
Employers need to do a thorough background check to select the most qualified and trustworthy individuals for open positions. It’s a certain way to ensure that only the most qualified candidates for an open position are selected by management.<\/p>\n\n\n\n
Imagine you’ve met a persuasive job applicant with a stellar resume. However, the right mentality and social behavior to represent the business going forward might be revealed through a thorough background check. Employers should take special precautions to protect the privacy of job applicants when collecting and using their personal information. When conducting background checks on potential employees through a third party, it is imperative that you always refer to and abide by the Fair Credit and Reporting Act.<\/p>\n\n\n\n
What’s in a Small Business Background Check?<\/strong><\/p>\n\n\n\nThe information revealed by a small business background check can change significantly from one industry to the next.<\/p>\n\n\n\n
The majority of small enterprises, however, request the following kind of research:<\/p>\n\n\n\n
\n- Education verification<\/li>\n\n\n\n
- Criminal history<\/li>\n\n\n\n
- Professional license verification if applicable<\/li>\n\n\n\n
- Employment verification<\/li>\n\n\n\n
- Identity verification<\/li>\n\n\n\n
- Pre-employment drug tests<\/li>\n<\/ul>\n\n\n\n
Small Business Background Check Services<\/strong><\/h2>\n\n\n\nBackground check services can safeguard your business by disclosing information about an applicant’s identification, criminal history, job and educational background, credit score, and more. Think about the several kinds of checks that can be run, how much they’ll cost, how accurate the results will be, and how user-friendly the service will be before committing to one.<\/p>\n\n\n\n
Finding the information you need isn’t the hard part; rather, it’s sorting through the masses of data to find actionable insights that will give you the confidence you need to collaborate with another company. <\/p>\n\n\n\n
Small Business Background Check Services: What to Consider?<\/h3>\n\n\n\n
Choosing a background check provider involves a number of considerations. Here are the standards by which we judged each option, and we advise you to do the same:<\/p>\n\n\n\n
#1. Price<\/h4>\n\n\n\n
Different businesses charge different amounts for different sorts of reports. When compared to the full-service organizations, whose prices per applicant review varied from $24.99 to well over $100, the DIY service we researched cost less than $20. Three pre-set tiers of packages are common among the offerings of many businesses. Some require a single payment to join. Discounts may be possible for ordering many background checks at once; however, this typically requires speaking with a customer service agent.<\/p>\n\n\n\n
#2. Do-It-Yourself vs. Professional Options<\/h4>\n\n\n\n
<\/strong>If you’re trying to save money, it could be tempting to do your own background checks through online searches. However, you’ll have restricted access to data and run the risk of finding incomplete or inaccurate information about your applicant. <\/p>\n\n\n\n#3. Compliance<\/h4>\n\n\n\n
Background checks are mandated by the FCRA. Do-it-yourself methods frequently fail to meet requirements, such as those requiring applicants’ written agreement to background checks and the right to see results. It’s important to check if a company is FCRA compliant before doing business with them. Information about the Federal Trade Commission’s (FTC) role in enforcing the Fair Credit Reporting Act (FCRA) is available on its website.<\/p>\n\n\n\n
#4. Product Variety<\/h4>\n\n\n\n
Full-service background check providers may do some of their research via Internet databases, but they also provide in-person services including reference checking and county court visits. Your background check’s credibility and thoroughness can both improve with the help of these providers.<\/p>\n\n\n\n
#5. Technology<\/h4>\n\n\n\n
You should also think about how well-integrated the technology is before making a final decision. Some provide web-based platforms that integrate with a wide variety of HR software and make it simple for candidates to submit their information and for you to view real-time reports.<\/p>\n\n\n\n
#6. Assistance to Clients<\/h4>\n\n\n\n
Many businesses provide extensive assistance to their clients. On weekdays, several companies provide phone assistance. There are also services that provide email help around the clock. Conversations with others are possible by phone, electronic mail, and live-web conferencing. In some businesses, each client is given their own account manager. Also, consider the company’s availability in light of your support needs and your work schedule.<\/p>\n\n\n\n
#7. The Superiority of the Company<\/h4>\n\n\n\n
There are a number of metrics by which a company’s service can be evaluated. Read both professional and customer assessments of the product. Check the company’s credentials, such as those from the Better Business Bureau (BBB) or other organizations that promote ethical business practices. The National Association of Professional Background Screeners (NAPBS) is the trade group representing the background-checking sector.<\/p>\n\n\n\n
Overview of the Best Business Background Check Services<\/strong><\/h2>\n\n\n\nHere are the top best business background check services.<\/p>\n\n\n\n
#1. GoodHire<\/h3>\n\n\n\n
When it comes to background check services, GoodHire has everything a small business might want, including thorough reports at reasonable prices. Users can get all of their background check results in one easy-to-navigate internet platform. Besides the construction and healthcare sectors, GoodHire also assists the nonprofit, retail, staffing, and technology sectors.<\/p>\n\n\n\n
Furthermore, there are three preset search options available from this firm. Packages can cost anything from $29.99 each check up to $79.99 per check. There is a progressive level of thoroughness in the searches conducted for each plan, with the most comprehensive option looking into national criminal databases, sex offender lists, domestic watch lists, county criminal court searches (looking back seven years), education verification, and employer verification. Users have the option to purchase supplementary searches, such as verification of a professional license, a credit report check for potential employers, a drug test, a check for healthcare sanctions, or a DMV record check.<\/p>\n\n\n\n
#2. AccurateNow<\/h3>\n\n\n\n
AccurateNow, a subsidiary of Accurate Background, provides a low-cost background check for a small business. However, small business owners can benefit greatly from its pre-employment screening services because of its affordable charges, pay-as-you-go programs, and lack of monthly minimums. Background checks are one service AccurateNow provides, and they cover a wide range of fields.<\/p>\n\n\n\n
Also, it has three distinct pricing tiers. The starting price for a report is $29.95 (for the Basic package) and goes up to $74.95 (for the Premium package). The Premium package includes an SSN trace and addresses history check, a national criminal check, a national sex offender registry search, a worldwide watch search, verification of education and employment for one individual, and a global watch search. further costs will apply for any further searches that you request. Verification of credentials in the fields of work, transportation, education, and employment, as well as federal criminal records checks, all fall within the umbrella of these investigations.<\/p>\n\n\n\n
#3. eNannySource<\/h3>\n\n\n\n
Caregiver and nanny screening is made easy with eNannySource, a web-based service. Even while eNannySource isn’t something you’d use for traditional pre-employment screening, it’s a fantastic tool for those trying to fill domestic staff positions. To ensure that the domestic worker you hire from eNannySource is trustworthy, we conduct extensive background checks.<\/p>\n\n\n\n
There are three different subscription tiers available on the platform that range in price from $24 to $94. Different plans have different levels of coverage; the most extensive one checks over 300 million federal criminal records. In addition, a national alias search, a driving record report, a search of the national sex offender registry, a search of the county court records for the most recent county in which the applicant has lived, and searches of the county court records for prior counties in which the applicant has lived are all carried out. New York searches, for instance, set you back an extra $95, and neither Pennsylvania nor New Hampshire offer drivers’ abstracts.<\/p>\n\n\n\n
#4. B&B Reporting Inc.<\/h3>\n\n\n\n
B&B Reporting Inc. provides small and medium-sized enterprises with a wide range of verification and background check services. If your company needs cutting-edge background check software, we suggest this firm.<\/p>\n\n\n\n
Plans are not available through B&B Reporting, Inc. Instead, it provides a menu of optional background checks and screenings that you can combine in any way you see fit. The agency does not publish its rates online; to obtain an estimate, you must speak with a representative. Multiple jurisdictional criminal searches, county criminal searches, state criminal searches, and federal criminal searches are all options for screening.<\/p>\n\n\n\n
How Do You Investigate a Business?<\/strong><\/h2>\n\n\n\nWhen evaluating a business, research, observation, and common sense are all useful assets. Here are some factors to weigh as you research a potential acquisition:<\/p>\n\n\n\n
#1. Pay Attention to Clients<\/h3>\n\n\n\n
If you’re going after a client business where loitering is not strictly forbidden, spend some time eavesdropping on customers to get a feel for how they feel about the establishment.<\/p>\n\n\n\n
#2. Keep an Eye Out for People<\/h3>\n\n\n\n
Spend a couple of weeks in undercover policing mode. You can keep an eye on your target company by parking your car or sitting in a coffee shop across the street at various times during work hours and marking the time, date, and duration of your observation on a chart. Also, take note of the busy and slow times in your business. Take note of the kind of clients who are coming in and investigate their motivations.<\/p>\n\n\n\n
#3. Research the Area and Your Competitors<\/h3>\n\n\n\n
How would you describe the vibe of the neighborhood the store is in? Where does it fall on the spectrum between cool and necessary, and how common are establishments like this one on this street? Is there a need for this establishment in the community? Is the neighborhood improving (more affluent individuals are coming there), declining (you’re already catering to those with the highest disposable income), or staying about the same?<\/p>\n\n\n\n
#4. Find Out Why There Are Empty Storefronts<\/h3>\n\n\n\n
Storefront vacancies might not necessarily be cause for alarm. Empty storefronts could be a sign of a developing crime problem in the area, driving away potential customers and employees. This is bad news for any business, consumer, or otherwise. Alternatively, it’s also possible that landlords are raising rents since the neighborhood is experiencing a quiet real estate boom and they believe they can attract a more affluent tenant population by doing so.<\/p>\n\n\n\n
#5. Look Into Who Holds Authority in the Area<\/h3>\n\n\n\n
Locate the local legislators with the most influence in the area where your firm is based. Observe their actions (and inactions) on behalf of the business community. Investigate whether there are any nonprofits in the area that provide assistance to local businesses, and get as much information and intelligence from them as you can in a stealthy manner for your study.<\/p>\n\n\n\n
#6. Check the Headlines<\/h3>\n\n\n\n
Do you know how the business section of the newspaper always has those dull paragraphs with lame headshots about how Joe Jones received a great promotion? When contemplating a business acquisition, these columns can become quite engaging.<\/p>\n\n\n\n
Furthermore, the positive news (expansion, new locations, skilled new executives) and the bad news (locations closing, top management resigning, lawsuits brought by customers or suppliers) can be found by searching for any news story that involves the name of your target company.<\/p>\n\n\n\n
Background Check for Employment<\/strong><\/h2>\n\n\n\nMaking a hasty decision and hiring the wrong individual can waste time and money. The results of a thorough employment background check can give you more confidence in your hiring decision.<\/p>\n\n\n\n
An Employment background check is a type of pre-employment screening that involves researching an applicant’s claims in public records.<\/p>\n\n\n\n
Background checks are an integral component of the recruiting process since they assist mitigate risk, providing more insight into candidates, and validating initial judgments.<\/p>\n\n\n\n
Furthermore, a background check can be used as an employment requirement, but only if they are conducted in accordance with the Fair Credit Reporting Act (FCRA), which regulates the creation and use of consumer reports. The Fair Credit Reporting Act (FCRA) shields both employers and job seekers from discrimination and privacy invasions in the recruiting process.<\/p>\n\n\n\n
How Do Employment Background Checks Work?<\/h3>\n\n\n\n
An applicant’s identity can be confirmed through a background check by looking up their name, address, and other personal information in public databases like criminal and financial filings. Physical interaction with a university, professional group, or former job is also possible.<\/p>\n\n\n\n
Human resources professionals often use consumer reporting agencies (CRAs), background check firms, or HR software (such as HRISes) to perform these investigations.<\/p>\n\n\n\n
Background checks are governed by both the Fair Credit Reporting Act (FCRA) and state legislation, both of which have specific requirements that must be met to avoid legal liability.<\/p>\n\n\n\n
Employment Background Check Process<\/h3>\n\n\n\n
While most employers wait until they are ready to make an offer before conducting background checks, some will use a report on multiple applicants to assist them choose who to hire.<\/p>\n\n\n\n
To ensure compliance, you need to take the following four measures:<\/p>\n\n\n\n
\n- Disclosure<\/strong>. Candidates need to be made aware that pre-employment screening is a need before an offer can be made.<\/li>\n\n\n\n
- Permission.<\/strong> The applicant has the right to know who is doing the background check, what information will be shared, and what rights they have under the Fair Credit Reporting Act (FCRA).<\/li>\n\n\n\n
- Research.<\/strong> After the candidate gives their approval and enough personal information, the report is generated utilizing the appropriate resources.<\/li>\n\n\n\n
- Review<\/strong>. You will be given a report to evaluate, which will normally be labeled as “clear” if hiring is okay or “consider” if there is cause for worry.<\/li>\n<\/ul>\n\n\n\n
Conclusion<\/strong><\/h2>\n\n\n\nYou should be able to relax after conducting a business background check if you know that the results are comprehensive and straightforward. There are a plethora of corporate screening companies, but they all disclose too much data.<\/p>\n\n\n\n
However, most companies outsource the process of checking applicants’ backgrounds before hiring them. While it is possible to do some of the aforementioned checks on your own, it is usually more efficient to use a background check service. This is especially the case if you intend to implement multiple of the aforementioned measures on each worker. It might be especially challenging to keep up with the legislation and local agency requirements linked to requesting data if you employ employees in more than one region.<\/p>\n\n\n\n
Business Background Check FAQs<\/h2>\n\n\n\t\t\n\t\t\t\tHow Do Employers Verify Employment History?<\/h2>\t\t\t\t\n\t\t\t\t\t\t
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An employer can learn more about your work history and whether or not you have the desired abilities by doing a background check. A potential employer may verify the information you provided about your employment history by calling your former employers. A potential employer may also inquire about your abilities and performance from previous jobs.<\/p>\n\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\tCan Employers See if You Were Fired?<\/h2>\t\t\t\t\n\t\t\t\t\t\t
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An employer has the right to know whether an employee left due to termination, layoff, or voluntary resignation in the majority of states. While employers have the right to reveal employee information, this does not necessarily indicate that they would.<\/p>\n\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/section>\n\t\t\n