Background Check Investigator: 10 Facts About Employee Background Checks

What you need to know about employee background checks.

As the saying goes, hire the best and reject the rest. Employee background checks are a principal means of acquiring critical information about potential hires. Past performance is a strong indicator of future performance, so it’s best to be vigilant.

A background check investigator can help you mitigate any threats and reduce the risks associated with hiring new staff. You can rest assured that you hired the right person.

Hiring a background check investigator is a proactive approach to protecting your firm’s reputation. Conducting background checks and criminal history investigations can save your business time and money.

Here are 10 facts about employee background checks conducted by private investigators every employer should know.

1. 9 in 10 organizations

According to the Society for Human Resources Management, 92% of companies conducted background checks on potential employees. As a business owner, it’s in your interest to protect your organization from liability issues arising from a new hire. One of the best ways of ensuring this is by running background checks as a standard part of your hiring process.

2. Conducting background checks comes with a variety of legal challenges

Some processes are best left to the professionals – employment background checks being one of them. It’s possible to conduct an informal background check on social media and other internet sites. Here’s the thing: Not only are such searches inconclusive since they don’t yield information on credit history or criminal history, but they might also be illegal.

Employment background checks are regulated by the Fair Credit Reporting Act and enforced by the Federal Trade Commission. A background check investigator is familiar with the federal and state laws regarding background checks and can ensure due process is followed.

3. 10% of all background checks reveal at least one serious red flag

From repeated unemployment and failed drug tests to criminal records, background checks can reveal a lot about candidates. Think of all the time spent recruiting and training. A poor hire can cost you a lot of money and time or, worse, your reputation.

You don’t want to end up with a sex offender on your payroll. Not to mention the negative impact such a hire can have on employee morale and productivity.

4. Employment background checks are a legal requirement for certain jobs

Failing to run background checks for certain positions can result in significant fines for your business. For instance, federal law mandates background screening for financial services, healthcare, government, and education sectors. If in doubt and as a failsafe, it’s vital to conduct background investigations for every one of your employees.

5. Employers lose an overwhelming majority of negligent hiring cases

A negligent hiring case is every HR professional worst nightmare. Employers have lost more than 78% of all negligent hiring cases, most of which were associated with candidates with a criminal history. These cases could have been avoided by hiring private detectives to conduct a criminal and employment history. Credit checks are just as important as they can reveal individuals with a history of fraud or late payments.

6. Workplace violence accounts for 18% of all violent crime

Most employers take workplace health and safety very seriously. Considering that about 13% of workplace fatalities result from assaults and violent acts, hiring people with a history of violence is an additional health and safety risk. In addition, employers can be held liable for violent incidents, especially if they failed to screen the aggressors.

7. Background checks on freelancers are becoming more common

The gig economy is growing, and it’s expected that more than half of the U.S workforce will be freelance by 2027. As an employer, you still face a level of liability hiring a freelance contractor as you do a permanent employee. You could also be sharing sensitive company data with your freelancers, so it’s a good idea to confirm that they’re trustworthy and reliable through pre-employment background checks.

8. Background checks legal compliance is becoming increasingly complex

Screening your employees gives you peace of mind and helps you protect your employees plus company assets. It’s a background investigator’s job to stay up to date on changing requirements. For instance, criminal history inquiries are prohibited in some states. Some regulations aimed at protecting consumer information also change yearly. The differences are typically subtle and might need the expertise of an experienced private detective to decipher.

9. 53% of all job applications contain inaccurate information

People lie on their resumes – that much is true. Common red flags in background checks can include multiple short-lived jobs, inconsistency in the experience entries, missing education records and professional licenses, plus misdemeanors or DUIs in driving records.

10. 30% of all business failures are caused by employee theft

The Association of Certified Fraud Examiners estimates that small businesses lose 5% of their annual revenue to employee fraud. It’s corporate America’s dirty little secret. This is why background checks are crucial when making hiring decisions. A thorough screening process can help you learn more about potential hires so you can hire the best person for the job.

Protect Your Business with Sig 14 Investigations

In a nutshell, a comprehensive background check will save you time and money. Sig 14 Investigations provides background checks in Tampa to ensure your employees and business partners are trustworthy. Call us at (813) 261-1192 for a free consultation.