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Hiring? NOT doing background checks on new employees could be your biggest mistake!

by , 18 April 2013
Did you know that many job applicants have criminal records and at least 25% had a negative financial record? This is according to the latest study done by The Employers Mutual Protection Service. Given this, you can't afford not to make reasonable inquiries about who you hire. Read on to find out what a background check is and why you need to conduct one on prospective employees.

As an employer, you need to do background checks on potential employees to ensure you're hiring the right person for the job.

The last thing you want is to hire someone with a bad credit history in your finance department or someone convicted of drunken driving as your company driver. Background checks ensure this doesn't happen. That's why you need to conduct them.

But what exactly should you include in a background check?

According to The Labour Law for Managers Loose Leaf Service, background checks should include doing the following:

  • ID number verification;
  • Driver's licence verification;
  • Criminal record checks;
  • Credit checks;
  • Qualification verification;
  • Company links;
  • Property ownership; and
  • Vehicle ownership information.

When should you do background checks?

You'd need to do these checks before you commit to employing potential employees.

'You can either do these checks after a first interview or after a second interview if you follow a two step interview process. There are no hard and fast rules. The important thing is that you do the checks before you hire,' cautions the The Labour Law for Managers Loose Leaf Service.

Remember to ensure you obtain the candidate's written consent to do background checks. The good thing is, you're entitled to relevant public information, but it's always best to access the information with the written consent of applicants.

And that's why it's advisable that you put a clause in your application forms allowing you to do background checks. You should also include this clause in your employment contract.

If you're open with applicants about the fact that you'll do background checks, it also helps you deter 'individuals who know they've got negative criminal or credit histories,' the Loose Leaf explains.

Knowing why you need to conduct background checks will help ensure you conduct one to avoid hiring unscrupulous employees who bring your company's name into disrepute

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