Small Business Human Resources

Background Checks on Employees

Written by Richard San Juan for Gaebler Ventures

For startups and small businesses, recruiting and hiring are often done without a thorough hiring process and a background check. In the effort to get help right away to build up the company, entrepreneurs often go through quick hires only to regret it later on. In addition, entrepreneurs should also be worried now about negligent hiring.

Conducting a background check as part of a structured hiring process is as important as any other organizational strategy for small businesses.

Background Checks on Employees

Investing in conducting background checks can save the company and its employees from financial or even physical damages.

Many companies are not aware of what's at risk. If a company or organization is found guilty of negligent hiring, it means that the founder and the company can be sued if one of the hired employees injures another employee. This is especially damaging if it can be proven that a thorough background check would have raised flags about the troublesome employee.

Therefore, to safeguard against potential problems, it is essential to conduct a hiring process and a background check for every employee that is hired.

Here are five hiring practices that companies should pursue during hiring processes:

1. Use Testing to Gain Insights

Require a third party professional testing. By allowing professional staffing to conduct a series of tests for a possible employee, their expertise will be able to determine what the employee's competency is and how it will relate to accomplishing the needed tasks of the job. It will also give the professional staffing an idea on the psychological state of mind. They are able to spot and bring up red flags to those individuals who have a tendency for violent, addictive, or dishonest personalities.

2. Conduct Group Interviews

Schedule a group interview with fellow employees. This stage of the hiring process helps determine whether or not the candidate for employment would be a good fit for the company. Would the candidate fit the work culture? Through this setting, interviews are more relaxed for the purpose of making the conversations more engaging. It is important to follow up on the group meeting with everyone involved to get some input on the applicant's candidacy for employment at your company.

3. Conduct an Intensive One-on-One Interview

Arrange for a thorough and intensive one-on-one interview. Besides asking the general basic questions about the resume, there should definitely be questions where there is no correct answer. You should ask the candidate how he would assess the situation and what type of solutions should be suggested. This is a good way to see how the potential employee deals in a pressure situation and how good his reasoning skills are.

Moreover, you should analyze the behavioral mannerisms that the candidate does during the interview. Does he make good eye contact? Do his hands keep moving? Is his seating posture appropriate? All this should be taken into account while conducting the interview.

4. Do a Background Check

Ensure that you request a background check. There should be no reason not to do it given how easy it is to do. Background checks are done usually quickly, and they are not very expensive.

It is worth it to protect your company and other employees against a new hire that turns out bad in the long run. Background checks can unearth criminal records, lawsuits pending at his or her previous employers, and compensation claims.

5. Check References

Also, don't forget to do a reference check. This is a way to get in touch with former employers of the candidate and see if there are any additional red flags that you should be worried about. Furthermore, you can verify the dates of employment as well as previous salaries.

Richard San Juan is currently pursuing an MBA degree with an emphasis in Finance from DePaul University in Chicago. He is particularly interested in writing about business news and strategies.

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