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Why Companies Need to Run Background Checks

PSI Team | Industry Expertise

Employee background checks are an important step to the hiring process. They help companies make safe and informed decisions about who joins their team, which in turn helps maintain the business’s values, productivity, and overall success. Not every industry requires a background check for new employees, but all businesses can reap these benefits. If you’re planning to grow your business or update your hiring process, consider these three reasons why companies need to run background checks.

Make Informed Hiring Decisions

First, and perhaps most obviously, background checks help employers make informed decisions about who they hire. A background check pulls information such as criminal history, driving records, and credit checks. It also helps verify the education and employment history on an applicant’s resume. This allows employers to learn more about their different applicants and have as much information as possible when making their final decision.

Avoid Liability

A background check can also help keep your company compliant with the various rules or regulations of your industry. For example, say you want to hire drivers for your company. If you hire someone with a poor driving history, and they get into an accident while on the job, your company can be held accountable—even if you didn’t know about your employee’s record. A background check will show your applicants’ driving records, which could include vital information like a previous DUI or other reckless driving charges. Companies should use background checks to ensure that their employees are a good match with their roles and responsibilities.

Ensure Workplace Safety

Safety is a vital part of any business, and it’s a major reason why companies need to run background checks. You want your company to provide a secure and reliable experience for both your employees and your clients. Professional background checks help achieve that by making sure you hire dependable people. Even beyond a criminal record, a background check can show you how your potential employees handle finances. You can see whether they’ve been entirely honest on their resume and application. A background check offers insight on how trustworthy your candidates are, allowing you to hire the best people to make your company a safe and secure place of business.


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