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Five Reasons Why Employers Should Conduct Employee Background Checks

The process of hiring new employees is an exciting time. However, there may be anxiety associated in hiring a new employee to your company. One of the biggest hurdles when hiring is determining if the prospective employees are qualified for the position and confirming their references.

One of the most important aspects of reference checks is conducting background checks on prospective employees. Doing thorough background screenings could assist employers in understanding the previous work experience of applicants as well as information about their education such as criminal records, education or qualifications that might not be accurately reflected on CVs and resumes.

Here are five reasons businesses need to conduct employment background checks:

1. Prevent Frauds

Background checks can prevent fraud. If it’s falsifying work or educational information or using fake identities to get a job or even stealing client identities through posing as employers, it is possible to spot numerous frauds that occur in the workplace. Doing thorough checks on background throughout the hiring process can assist employers in identifying the signs of these issues before they happen and take necessary steps to address these issues.

2. Find out if the applicant is a safe and appropriate suitable candidate for the job.

Every employer would like to make sure they make the right choice when deciding on a new employee to their organization. Background checks of candidates can help them figure out whether the candidate is the right fit for their company. In particular, they may examine their previous experience to determine if they’d be a good fit for the job or look up references from previous employers to determine the way their previous employers view them.

In certain industries DBS checks are mandatory in accordance with specific regulations for the industry. DBS checks are criminal record checks that give employers the data they require to make secure recruitment choices. The information on DBS Certificates DBS Certificate lets employers know whether or not an applicant is suitable for certain tasks that require vulnerable groups.

3. Guard the employees and business

Safety and health at the workplace is a crucial element of any company. If you are looking to protect your business and employees, an extensive background check on applicants should be conducted. If that someone has a criminal history and has convictions that are relevant to the job they perform in your company. In this scenario you must ensure you have all the relevant information accessible. This will allow you to determine whether the candidate is able to interact with customers, or even permitted to conduct activities that affect vulnerable customers. Conducting background checks prior hiring new employees can give employers insights into the backgrounds of potential employees to determine if they are secure to work for them.

4. Secure Customers and Investors

Background checks are also a way to protect the company’s investors and customers. A study has shown that employees with background checks conducted will be less likely be the risk of financial loss. The estimates suggest that companies suffer losses of PS2.37 trillion around the world because of fraud in the workplace and theft. Through helping to identify people who are committing fraud or who are financially responsible The cost of background checks isn’t much as compared to the sum of cash you could be losing in the event that they were not conducted.

5. Follow Industry Regulations and Laws

Employers must run background checks for all new applicants in order to prevent legal issues and ensure compliance with any legal or regulatory obligations they might have. In the absence of relevant background checks, you could expose your company to legal actions. This could also put any people you work with exposed to individuals who shouldn’t work with them. Conducting thorough background checks prior to making offers to hire will help employers avoid problems which could later come back to.


There’s no reason to why conducting background checks is advantageous. Apart from the reasons that we’ve previously mentioned and analyzed, the following to be the most frequently cited motives:

Aiding in reducing employee turnover

Help prevent absenteeism

Contributing to improving the reputation of an organisation

While these checks are expensive however, the total cost could be a tiny drop on the water. When compared with the expense of a lawsuit arising from a negligent hiring. And that’s not even mentioning the reputational damage!

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