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Do Small Businesses Need to Conduct Background Checks, Too?

Whether you employ two people or 2,222, a thorough background check of every prospective hire can make or break your business. Top reasons for conducting background checks, according to LinkedIn, include:  

  • Flagging any criminal convictions in an individual’s past.  
  • Spotting any past infractions that may affect a person’s ability to do a job.  
  • Avoiding liability and mitigating risk.  
  • Giving you a better total picture of a potential hire.  
  • Verifying a person’s education, past employment, and other professional credentials.  
  • Helping to keep your current employees and other stakeholders safe.  


The Wrong Behavior is Contagious

Think of background checks as a preventive medicine to avoid potentially dangerous issues at your company down the line. By taking this proactive step, you help safeguard your business, its employees, its image, and its integrity.  

In a 2018 study reported in Harvard Business Reviewit was found that among coworkers, it’s easier to adopt bad behavior than good – and this includes fraud. Researchers examined peer effects in employee misconduct at financial firms that had merged, thereby exposing employees to the ideas and behaviors of new colleagues.  

Misconduct was defined as customer complaints for which settlements of at least $10,000 were paid, or arbitration decisions were lost. It was found that financial advisors were 37 percent more likely to commit misconduct if they encountered a new coworker with such a history. And, each case of misconduct resulted in an additional 0.59 cases through peer effects.  

As noted by the National Federation of Independent Businesses (NFIB), a company’s employees are 15 times more likely to steal from them than is a stranger who walks in off the street. Employees who work at stores make up 44 percent of theft losses at their businesses – everything from skimming to divert funds to fraudulent disbursements and embezzlement.  


Your Primary Obligation

As an employer, your primary obligation is not only to protect your business but also to ensure the safety and security of your entire team. It’s the right thing to do, day in and day out, and it’s also a mandate of the federal Occupational Safety and Health Administration (OSHA). It could be argued that hiring a person with violent or criminal tendencies that could have been disclosed with due diligence represents a disregard for this obligation.  

    • Security is a serious concern, especially in positions where an individual is responsible for financial transactions or decisions that impact your company’s profitability or reputation.  


Talk With the Experts!

Chane Solutions provides customizable background screening and drug testing services designed to match your specific business needs. Every screening undergoes a thorough quality control audit, with each component assessed for accuracy and completeness. With decades of in-depth experience, our team has redefined best practices for hiring talent and has distinguished itself as an industry leader in pre-employment screening. Contact us today to learn more. 


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