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How an Employment Background Check Protects Your Startup

Startup companies are vulnerable. They have caused many sleepless nights, constant dedication, commitment, and they’ve required a level of determination you didn’t know you had.

How an Employment Background Check Protects Your Startup

Now, you’ve finally gotten yourself to a position of needing help, which is a significant accomplishment. But how do you successfully hire someone to work within your company without sacrificing the quality, safety, and security you’ve spent so long building?

After all, the person you hire is an extension of your brand. They will be responsible for maintaining and holding your assets, dealing with your customers, or maintaining your image when you’re unavailable.

Vetting a potential candidate is crucial to protecting your investment. You need to make sure that employees on your payroll are qualified and certified. Without this, you’re putting your startup at unnecessary risk.

Preventing Misrepresentation of Qualifications

We all know of someone who grossly embellishes any story they tell, and potential job applicants are no different. Some believe that the higher the qualification, the better the chance of landing a job.

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As such, some of those individuals can take a small accomplishment and exaggerate the details. While this isn’t always harmful to companies, it can expose your company to unnecessary risk.

Underqualified individuals don’t just waste time and resources; they also interfere with the regular functioning of your company. Additional resources like product or time are needed to correct the errors, costing you more than just financial problems.

Performing a background check at CheckPeople.com will ensure that every applicant that you’re considering is are genuinely qualified (by verifying degrees or certifications) for the position.

Eliminating Potential Security Risks

Depending on your industry, new hires will be given access to confidential and sensitive information. With security needing to be a crucial consideration, having a background check can offset your risk as a startup.

Highly regulated industries like medical, childcare and financial sectors always require additional evaluation before hiring. Taking their financial history into account for a job in finance, for example, may offer insight into their ability to manage other client accounts.

Monitor the report for signs of financial distress, insolvency, or any criminal activity involving theft or fraud. Likewise, anyone applying for a medical position should have their medical history and police checks reviewed for potential red flags.

Again, red flags aren’t necessarily mandated dismissals, but you should carefully evaluate them, along with all the other qualifications.

Reducing Company Liabilities

Without knowing someone’s past, your startup is put in a compromising position. You’re leaving yourself open to potential liability depending on an employee’s past.

Criminal records, for example, can showcase past risky behavior that may put your clients, finances, or staff at risk. Criminal history doesn’t have to be a dealbreaker, but it should bring awareness to any potential risk you’re inviting into your company.

Likewise, the criminal history will also highlight any issues with impulsivity, judgment, or decision-making from potential applicants.

If you’re looking to hire a driver for your company, pay close attention to both the criminal history and the driver’s abstract. Hiring a driver with previous infractions can increase your risk overall. It can also impact your company’s image if the driver in question has troublesome driving habits.

What to do if you find concerning results from a background check

You are protected from hiring applicants that don’t meet your required standards for qualifications or skillset. You are also protected from hiring candidates that fail your background check requirements.

There are circumstances where immediate termination is the obvious choice; lying about qualifications, criminal history, or gross discrepancies in work history can be a significant influence in your hiring decision.

If you decide to decline an applicant based on the background check, you are required to inform potential applicants of your decision, along with a copy of the report obtained.

This will give the individual an opportunity to review their file and contact relevant agencies moving forward in the event of an error.

Some startup companies will allow the applicant to explain themselves in the event of gaps in employment history, financial distress, or similar circumstances. If an applicant is exceptionally qualified for a position in terms of credentials but has gaps in their history, allowing an explanation may alleviate any concerns you have with hiring them.

If you are not comfortable doing this, close the application and move on to the next applicant. Remember, your startup is the result of hard work, dedication, and persistence.

It only takes one hostile or questionable employee to undo years of work. Therefore, safeguarding your investment isn’t only necessary; it’s mandatory for your continued success.


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