Top 5 Reasons to Conduct Pre-employment Background Checks

Conducting thorough background checks will provide your company with the necessary information to protect itself and its employees. The following are the top five reasons to conduct pre-employment background checks:

  1. Falsified Resumes

If you receive a resume that is too good to be true, it probably is. Deception on resumes commonly entails falsifying education, stretching dates to cover employment gaps, enhancing job titles, embellishing job duties and achievements, fabricating credentials or licenses and inventing employers. A pre-employment background check will verify the accuracy of the information provided on the applicant’s resume.

  1. Falsified Identification

When an applicant falsifies their identification, they are usually trying to hide something. Here are examples of information that could be hidden with an applicant providing false information:

  • Misspelling of name to avoid a past offense from being reported.
  • Invalid Social Security Number to hide an alias.
  • False address history to avoid uncovering a criminal offense that was committed in another state or county.
  • Listing an education degree that was obtained through a diploma mill to hide not having a degree.
  1. Employee Theft

Past offenders have a greater tendency to recommit a crime; therefore a proactive pre-employment background check will uncover past criminal offenses and help protect your organization. The following fraudulent activities are commonly found in the workplace:

  • Skimming – Taking cash/check payments before they are entered into the accounting system and reporting fewer sales than actually turned in.
  • Lapping – Taking a customer’s cash/check payment and covering the theft by applying a different customer’s cash/payment to the account.
  • Fictitious Vendors – Submitting invoices for payment from a fictitious vendor.
  • Fraudulent Check Disbursements – Producing checks to non-business related payees or altering checks.
  • Ghost Employee Schemes – Setting up an employee in the payroll system that does not exist.
  • Theft and Sale of Inventory – Employees taking inventory without authorization and selling for personal gain.
  • Submission of False/Fictitious Expense Reimbursements – Employees submitting expense reports for items already covered by a company credit card or items not allowable for reimbursement per the policy manual.
  • Padding of Hours – Employees lying on timesheets.
  • Improper Use of Company Credit Card – Employees using company credit cards for non-business expenses.
  1. Reduction in Turnover Costs

Verifying the truth and determining what is embellished on an application/resume will help you choose the best candidate for the job and minimize your turnover rate. Hiring the right person prevents:

  • Restarting the hiring process.
  • Loss of income due to the position being vacant.
  • Lost customers.
  • Low morale of staff.
  • Prevents high turnover rate.
  • Damage to professional reputation.
  • Training of a new employee.
  1. Negligent Hiring

Negligent hiring defined as the failure to properly screen employees, resulting in the hiring of someone with a history of violent or criminal acts. It is important to remember that negligent hiring is a legal doctrine and employers are responsible and liable for the destructive actions of employees when due diligence (conducting background checks) would have revealed the employees’ propensity to commit such actions.