Pre-employment background checks are more than just a way of avoiding bad hires; they’re also corporations’ best bet for beating negligence court cases. This article reviews why more and more corporations are hiring third party employee background check companies, rather than conducting background checks in-house. Read on to discover the benefits corporations enjoy by outsourcing their employment background checks.
1. Increased applicant privacy.
If an internal employee does your employee background checks, workplace drama can ensue. New hires will be less likely to trust their co-workers charged with employment background screening duties. Third party background checks go a long way in preventing mistrust and gossip. Moreover, they show applicants and employees that you are dedicated to even-handed, fair treatment.
2. Less chance for expensive mistakes.
Did you know that some states require employees to provide applicants with a copy of their employment background screening, even if it’s not specifically requested? Or that it’s illegal to base a hiring decision on court cases that did not result in convictions? Your company could be sued if you fail to follow the letter of the law as far as employee background checks are concerned. Yet few HR managers have the time or legal expertise to avoid all potential background check lawsuits. For this reason, increasing numbers of companies are outsourcing their employment background screening to vendors who have spent decades focused on these issues. Doing so typically results in fewer costly hiring mistakes.
3. Legal protection.
Beyond preventing legal mistakes, outsourcing background screening also grants companies exemption from lawsuits. The federal Fair Credit Reporting Act (FCRA) promises legal immunity for companies that choose to outsource their employment background checks. In other words, your company can avoid lawsuits citing hiring negligence, privacy invasion, and defamation if you outsource your background procedures.
Still, it’s notable that the FCRA still requires companies to notify candidates if they are investigating credit history. Therefore, it’s smart to ask your employee background screening vendor whether they offer forms for applicant notification.
4. Decreased costs.
It would likely take a full-time employee months to research how to legally, respectfully, thoroughly carry out employment background checks. Then, it might take them another few months to locate the investigative resources needed to methodically do employment background screening.
In contrast, third-party, professional background check companies have already developed the understanding and resources needed to effectively run employment background checks, so they can typically deliver the same (or improved) results at a lower cost.
5. More meticulous background checks.
Because professional background check companies specialize in labor investigations, they usually have excellent sources for examining individuals’ history. Having spent hundreds of hours perfecting their screening approach, professional background check companies can typically deliver more thorough investigations than can be achieved in-house.
6. Improved service.
Because they are investigative experts, background check companies offer extra features for their clients, such as adverse action letters. The law states that if you choose not to hire someone based on characteristics such as credit history, you must inform his or her in writing about your decision. An adverse action letter fulfills this duty. Many employment background vendors offer complimentary adverse action letters as part of their employee screening service, saving you time.
There are many reasons for outsourcing your employee background screening process, from lowered costs to improved legal immunity.