[Human Resources] Seven Reasons You Should Be Conducting Background Checks

The hiring process, including interviewing and screening applicants, enables employers to create an efficient yet diverse workforce. The more proactive a company is during these initial employment steps, the greater overall workforce productivity will be and the lower the possibility of future employment litigation.
Most companies provide applicants with standard employment applications, review resumes and conduct interviews. Many even use recruiters and have personnel trained in conducting pre-employment interviews. Unfortunately, many firms rely on inadequate practices for background screening of potential employees.
Beyond the many negative reasons to screen potential employees, employers with comprehensive background screening programs also reap many benefits.

1. If You're Contracting
 With Federal Agencies
The Department of Transportation (DOT) oversees drug and alcohol testing programs on mandated employees. The DOT requires employers to conduct a pre-employment drug test and obtain a two-year drug/alcohol test history.
Additional regulations set forth by the DOT require employers to monitor their employees on an ongoing basis. DOT employers who fail to conduct this screening are subject to penalty fines. While a variety of factors are considered when fines are assessed, record-keeping fines can begin at $500 per day, and the fine for knowingly falsifying records can be $5,000.

2. Better Attendance And Lower Turnover
Employers who conduct thorough background screening, including reference checking, experience better employee attendance rates and lower turnover. In addition, employers may see reduced health care and workers’ compensation costs.

3. Less Employee Theft
Overall, employers who conduct background screening experience fewer incidents of employee theft, fraud, embezzlement and shrinkage.

4. Fewer Incidents of Litigation
Background screening helps prevent an employer from hiring a potentially bad employee, reducing the risk of accidents, criminal activity and violence — all of which may result in litigation.

5. Better Productivity
The more an employer does to evaluate applicants — whether through interviews, reference checking or background screening — the better its overall workforce will be. And, the stronger the employee pool, the better a company’s overall productivity and performance will be.

6. More Qualified Employees
When a company screens its applicants, the company is more likely to find qualified employees for its open positions.

7. Confirm An Applicant Is Who They Claim
In today’s society where identity theft is a common problem, employers want to ensure a potential employee is who they claim. Confirm an applicant’s Social Security number by running a check on whether or not the number is valid. In addition, a critical post-hire check is the I-9 verification which must be conducted within three days of an employee starting his or her job. This search allows an employer to know whether or not a person can legitimately work in the United States. Conducting background checks is a practice that employers of all sizes should make standard operating procedure for all new hires.

The author is director of transportation sales for USIS Commercial Services and a leading authority in the field of trucking industry employment, regulations and screening practices. Established in 1996, USIS (www.usis.com) is a worldwide provider of total client solutions in human resources, investigations and security services to businesses, federal agencies and institutions.