Importance of Employee Background Checks for Small Business - cFirstcorp

Small businesses operate on an intimate level due to the restricted size of the workforce. They do not hire as many employees as large organizations. But, they are more dependent on their individual employees to carry out the business activities. The employees working in a small business need to take up multiple responsibilities and work as a close-knit unit. And that is the reason why even small businesses should do background check of their employees.

You not only have to take care about the work safety issues, but also need to vet the applicants in a stringent manner when it comes to their skills, criminal records, educational background and other similar details. It is equally important to evaluate the candidates’ temperament to ensure whether they are the right fit to work in a close-knit team.

A lot of small businesses neglect this area either due to lack of proper funds or screening tools. Opt for background check services that you can get at a reasonable cost which assists in saving huge capital for your small business, thereby resolving your purpose of conducting the check on the candidate.

Since every business need is different, it is important to select a background check service that is important for your business. List out different background check options and then decide which one is best for your business. You can start off with these checks:

  • Criminal records
  • Driving records
  • Drug test
  • Education records
  • References
  • Past employment records
  • SSN validation / work eligibility (for US employers)

Irrespective of whether you have recently launched a new business or been a part of the business for a while, at some point you will have to bring in new hires into the team. As a small business owner, you have limited time due to a tight schedule, but, since you want to grow your team you will have to conduct proper research for potential candidates by carrying out background checks and conducting interviews. It is normal to think that as a small business, you do not have to conduct background checks on prospective candidates. But that’s a mistake you can’t afford to make. In small businesses, it is particularly important to conduct background checks as you cannot afford to hire the wrong people as your business is too dependent on a handful of people. Let us look at the reasons that makes background checks necessary for small businesses.

1. Saves you time and money

As a small business owner, hiring a wrong employee can, not only result in unnecessary cost of paying salary, but, also time to search and interview the new candidates. Replacing an employee who doesn’t work out can cost 50% or more of the individual’s salary, according to the Small Business Administration.

It has been found that most small businesses do not have adequate funds to go through long litigation processes as a result of negligent hiring. By conducting background check services properly, you can protect yourself from the unexpected expenses that can come up with non-compliance of legal laws pertaining to background checks. On top of that, it will assist you to make the correct hiring decision that can save your time and money. Not bad, isn’t it?

2. A fair scrutinization of facts in the resume

As a small business, you want to recruit a candidate who is trustworthy and can gel with your team. But given the fact that people often lie in their resumes, it is quite difficult to discern whether the candidate is trustworthy just from the resume. To determine that it is important to get a background check of the candidates. By carrying out background check, all the facts presented by the candidate in the resume can be thoroughly scrutinized which helps you to make an informed decision. Take the hiring decision only after conducting a comprehensive background check on the candidate as It will save you the guilt of selecting a wrong individual for your business and also give you a fair idea whether the candidate is the right fit for your small business or not.

3. Keeps your workplace safe and secured for existing employees

While working in a closely knit work environment of a small business, it is important to ensure that the workplace is a safe and secure place to work. There are instances where workplace violence can harm the overall working environment in small businesses. This makes it all the more important for you to select a professional background check provider that can help you select the right candidate by carrying out criminal background check and identity check to keep your workplace safe and secured for existing employees.

4. Keep up with the legal compliance

Since small businesses do not have a hiring requirement as frequently as large organizations, you may not keep up with the latest regulations regarding background checks. But being unaware about laws can get your small business into trouble while conducting the checks. This makes it important to take assistance from background check professionals and

(A) Keep up with the legal compliance, including: getting written consent from the candidates before carrying out the check and notifying them if something questionable comes up;
(B) Create a consistent background check policy that can keep your small business stay away from the allegations of personal discrimination or intrusion by the candidate being checked.


Now that you are aware about the importance of conducting employee background checks for your small business it is time to consider partnering with a background screening company. A professional background check provider will give you proper guidance in selecting the different types of checks for the selection of a particular position. For example; if you are selecting a candidate for a managerial position, the professional background check provider will ask you to go for identity check, criminal background check, employment and education check instead of driving records check.

This is the right time to avail the services of a professional background check provider and reap the benefits of making the correct hiring decision thereby ensuring that your small business grows from strength to strength.

Note:-This article was originally published on Employee Background Verification and Screening Company | cFIRST

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