≡ Menu

3 Things You Must Know About Running Background Checks for Your Small Business

Employers need to manage their risks, and a great way to do that is by screening their employees. With one background check company performing more than 55 million screenings per year, the industry has exploded in recent years.

And that’s a good thing.

There are many benefits to having a pre-employment background check process at your small business, but you need to be informed about best practices and how to do it.

We’ve got three things you must know about small business background checks, because we care about your safety and your bottom line.

1. Small Business Background Checks Are Global

It doesn’t matter where you’re doing business and what your business is, background checks should be an integral part of your pre-employment screening. 

Some school districts, such as public schools in Chicago, screen all of their employees. In Australia, they do police checks prior to hiring law enforcement. In your locale, be the standard.

Small business background checks keep you safe and don’t have to cost a lot of money. If you’re not sure where to start, ask other local entrepreneurs. 

2. Background Checks Reduce Liability

The more you know about a potential hire, the safer you are. Reduce your liability at your small business with background checks. Your current employees will trust you, and your customers will, too.

Reducing liability is just one of the many things a CEO needs to have to make their company profitable. Click here to read about nine other characteristics we’ve found.

You should always disclose to a potential hire or current employee when you are doing a business background check to potentially determine employment. In fact, you are required to by law. And there are other Equal Employment Opportunity Commission (EEOC) and Fair Credit Reporting Act (FCRA) laws that you must know and follow.

3. Background Checks Must Be Fair

According to the EEOC, you must be demonstrably fair in the way you use background information in hiring practices. You need to use the same standards when hiring anyone, no matter their age, sex, race, or religion. 

Take pains to be fair about background checks to the letter of the law, but also in your own mind. Small business owners have a chance at impeccable and forward-looking hiring histories if you examine your own internal biases, which we all have.

For example, if you are going to check the criminal history of a potential hire due to the address you see on their resume, their age, or their race, you must be checking the criminal histories of all potential hires. It’s best to check your current employees as well, to be completely fair to everyone in the company.

Click here to learn more about your requirements as an employer implementing small business background checks.

Make Your Business Better

At Your Business is business at your service, and we are excited to help assist you with all the things you need to make your small business thrive.

We look forward to working with you on all the things that help your company flourish, from helping find virtual assistance, small business background checks, or even business documents and contracts! 

We know hiring and employment can be one of the toughest parts of owning a business, so check out these tips to keep employees productive and happy!