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Listen in! Pick up some expert advice to a reader's question that we selected from CyberSchmooz.

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4 Things Small Businesses Should Know About Background Checks


Background checks help you find the best potential employees during the recruiting process. You gain valuable information about potential hirees and whether their career history makes them a successful fit for you company.


Here are some of the most important things for small business owners to know about background checks. These tips could end up saving you money in the future!


  1. They Can Help You Avoid Legal Trouble Legal Trouble

The easiest way to tank a small company prematurely is to get involved in a legal dispute. The background check is meant to ensure employers that the person they are hiring has a clean record.


At ScoutLogic, clients are entitled to a wide range of information about the subject of the check. This applies to criminal record checks (federal and international), employment history, driving record, education verification, sex offender registry, professional license verifications, and more.


Someone can easily lie about qualification or certification on their resume or in the interview. This can quickly become a legal issue if that individual operates equipment or performs a job that they are not legally qualified to perform. Background checks eliminate this possibility by verifying all information before hiring.


  1. They Can Lower Your Staff Turnover Rate

According to Forbes, “operating units feel the pain of turnover in productivity, product quality, and customer service.” When you don’t invest in quality background checks, you could end up with sub-par employees that you soon lose. This means a higher turnover rate for your business.


High turnover leads to more time and money funneled into:


  • Training
  • Onboarding paperwork
  • Interviewing
  • Recruiting/job posting


It also means that your production line, as Forbes said, suffers increased pressure with a shrunken staff. This can lead to issues like:


  • Poor customer service
  • Disgruntled employees
  • Missed orders
  • And more!


Completing effective background checks means that the people you invest the time into hiring are more likely to be quality employees.


  1. Small Teams Mean Friction

When you’re operating a small business, your team may be small. This makes it essential that every staff member is someone that you want to work with. You can’t afford to have friction with the few employees and coworkers at your company. This is one of the reasons why background checks are essential – it’s the best way to guarantee your new hiree fits in with their future co-workers.


  1. Investing in Quality Service Means Efficient Background Checks

A small business should be a tight ship. Small inefficiencies can slowly build up and amount to significant lost earnings. The reality is that some background check services are slower. If you do your research going in, your small business can find a service that doesn’t waste any time. This means that you can move from interview to hiring faster, and get your employee started sooner.


While you can improve your turnover rate with background checks, you can’t halt lost employees entirely. An efficient background check service means that you can speed up the hiring process and get back to business as soon as possible, with little lost time.


The Bottom Line

Operating a small business is a lot of work, but with the right information, you can instantly improve your hiring process by optimizing your background checks.


Quality background checks leads to:

  • Lower staff turnover rate
  • Less friction among employees
    Less chance of legal trouble
  • More efficient hiring process


Keep this information in mind to help you make an informed decision about your service. Save time and money by doing background checks the right way.


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