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People are not your most important asset. The right people are

by Shivani Dhar BGV

It doesn’t matter what business you are in, as a business owner or manager, you know that separating the wheat from the chaff is always the most important task. One of the smartest make or break business decisions you should make to hire genuine people – Bringing the right people on board could save you millions resulting in efficient operations.

Liars, thieves, bad-news-bear execs, drug addicts, you name it – employers don’t want to hire trouble, as you’re not just recruiting employees, but are sowing the seeds that would guarantee your reputation. The importance of employee background verification cannot be underestimated as it ensures compliance and risk containment.

Are you hiring people you can trust?

Hiring mismatches can result in increased turnover, absenteeism, higher health care costs, workplace violence and theft causing substantial loss to an organisation’s bottom line and reputation. One of the biggest mistakes a small business can make is assuming they would not need to run background checks on potential employees. Whether it’s ten people or 10,000 – in the best interest of your organisation and yourself, it is crucial that you build a trust-worthy workforce. You need to know that you can trust everyone who is selected to be on your team.

So, here is why your company can be in a Risk zone if Background checks are not a part of your hiring process or you fail to run a background check successfully:

The Perilous environment for customers and employees.

According to SHRM over one-third (36%) of organisations reported incidents of workplace violence. These incidents result in physical or emotional harm to employees and customers. A background check can prevent negligent hiring lawsuits and provide a safer work environment.

It is time to seriously consider implementing background checks. Avoid wasting your valuable time, money and efforts on toxic hires.

Fraud, cyber crime and hacking.

KPMG’s recent Fraud, Bribery and Corruption Survey (Australia & New Zealand) reported that 75% of major frauds were committed by insiders.

One of the things that put small companies at greater risk is a lack of adequate anti-fraud controls, such as anonymous tip lines, segregation of duties, etc. In fact, skipping background checks on prospective employees is like opening the door and ushering someone with fraudulent intent.

Fictitious credentials.

Falsified credentials are a growing concern for organisations, job-applicants have gone from “puffing” up their resumes to crossing the boundaries “into the realm of fiction”, making things up to appear more attractive to potential employees.

If employees don’t have the experience or education they say they do, they may not fit the profile for which they were hired for and thereby creating disparity within the team. Running a background check is a sure-fire method to ensure you are hiring a candidate based on facts and not just fiction.

Ignoring differences of compliance’s by countries.

As employers increasingly look beyond their home borders to find talent, they can also face numerous legal challenges when trying to conduct background checks on a candidate who spent time in another country.

Developing an effective background screening program which is both legally compliant and practically effective and is managed by a trusted screening solution provider with proven expertise in the region can ensure a successful hiring program.

So, now here’s the question – how you are going to protect your company from legal repercussions??

 Integrate background checks into your hiring process right away, verifying each detail provided to you by the applicant. Contact all references to ensure applicants have held the positions that they claim. Also confirms that applicants have the academic credentials, military service records and professional licenses stated on their resumes. The benefits of running background checks are numerous, and it can help you build a defence system against possible threats to your organisation.

 OUTSOURCING IS THE KEY

 It’s not always easy or time-efficient to collect background information about prospective employees yourself. A qualified pre-employment screening service would save you time, money and offers you additional benefits to your hiring process. In short, hiring a CRA is a potential solution. Background screening, when conducted by a CRA, is highly regulated including by the Federal Trade Commission and the Consumer Financial Protection Bureau as well as state and local consumer protection laws. Following the guidelines laid out by The Fair Credit Reporting Act (FCRA) and Equal Employment Opportunity Commission (EEOC), will help establish a solid foundation of fair hiring practices by your firm.