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The Importance of Background Checks for Small Business Owners

For many small business owners, taking on all of the company’s duties and responsibilities can be rather difficult, especially as your business expands over time. Hiring employees is a great way to reduce your work load, and it allows you to place more emphasis on running the business rather than doing a lot of the leg work on your own. While the hiring process can be rather time consuming, it will allow you to hire individuals that are an ideal fit for your company. While in-person interviews and verifying references are great ways to help you determine who to hire, conducting a background check is an essential part of the pre-employment screening process. Padgett Payroll Services®, small business payroll expert, shares the importance of conducting a background check.

Hire Quality Individuals
The main reason that any organization would want to conduct background checks in the new-hire process is to make sure that they hire quality workers. Although an application, resume and initial interview given will reveal information and the characteristics of a potential employee, interviewees can fabricate information that they give to an employer. A background check will display plenty of information that can help employers determine if an applicant is the right candidate for the job. Here are some pieces of information that may be included in a background check:

  • Criminal history
  • Credit scores
  • Driving records
  • Education
  • Employment History
  • Military background
  • Residency

Safety and Security
Another benefit of conducting a background check is that it contributes to making your company’s work environment a safe and secure place. With an in increase in workplace violence, scandals and sexual harassment, it is important to make your work environment as safe as possible for you and other employees. According to a survey conducted last year by the Society for Human Resource Management, more than one-third (36 percent) of organizations reported workplace violence. With background checks, you will know more about the employee that you chose to hire, which will contribute to making your workplace safe and secure for everyone.

Reduce Employee Turnover
Without background checks to ensure that businesses are hiring the best individuals, companies can experience an increase in employee turnover. Bad hiring decisions can lead to lost time and additional costs. Conducting background checks will help employers avoid these costs and lost time by hiring the correct individuals the first time around.

Overall, background checks are critical to the hiring process for any type and size of business. If you are looking to expand your business by hiring employees, Padgett Payroll Services® is here to help with your expanding payroll needs. For more than 40 years, we have been the first name in small business payroll services. Contact us online or give us a call today at (706) 548-1040 to find out how we can help you with your payroll needs.

Do you have the support you need to manage your small business bookkeeping? Contact us to schedule an appointment to speak with a local small business advisor.

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