Hiring new employees for the New Year? Be careful!

The employees you hire are your business’s hands and feet – and they have the potential to make or break your business. You certainly want to avoid making the costly mistake of a bad hire, so in addition to interviewing candidates to ascertain their skills and abilities, be sure to verify their character as well.  One way to do this and find out a bit more about the trustworthiness of a candidate is to perform background checks.

Do I need to perform a background check?

The job description is the first place to start when answering this question. If you answer “yes” to any of the following you should consider (and may be required by law) to perform background checks:

  1. Do your employees have access to sensitive information such as social security or bank account numbers?  Are they working in clients’ homes?
  2. Will the candidate have access to your accounting where fraudulent transactions can be recorded?
  3. Will the employee have access to private information such as new product development, technology, etc?
  4. Will the employee be working with children?

What kinds of background checks are there?

There are several types of background checks, including credit, drug tests, verifying past employment and education, criminal background and driving records. As you decide which aspects you need to check, keep in mind that there may be specific rules in your state for which types are allowed (based on the type of employment).  For instance, if your employee is not a driver in any capacity for your business, a DMV check may not be allowed.

Before you look up their credit report….

Many states also look down on credit checks, because these can potentially reflect the economy more than providing an accurate view of the candidate. Under the Fair Reporting Credit Act, businesses must obtain a person’s written consent before seeking a credit report. If you decide not to hire or promote someone based on information in the credit report, you must provide a copy of the report and let the applicant know of his or her right to challenge the report.

How do I perform a background check?

There are many online background check companies to choose from when searching for information on candidates, but there are some things you can check yourself as well.  You can contact the schools listed on the resume and verify the candidate’s attendance dates and degrees, and you can also call former employers and verify the job duties and dates of employment listed on the resume.  If the candidate is willing to provide references, contact them and pay particular attention to former supervisors to get a true picture of their work performance.

Don’t forget to look up and follow your state guidelines.

Good luck with your hiring!

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