I often come across small business owners who, while they understand the reasons for using background checks, think they are just too expensive. This is especially true of new small businesses.
And I understand.
As an entrepreneur, your funds are often pulled in all different kinds of directions. You may have payroll obligations, basic business costs (utilities, supplies, etc.) ~ the list can seem endless. And of course getting a paycheck yourself would be nice.
A Good Small Business Background Check Doesn't Have to Break the Bank! "Tweet This"
However, you need to know that getting a good background check to help you hire the best candidate can fit in your budget!
There are a lot of different kind of background checks out there with varying costs attached. It is possible to use anything from a quick internet search to hiring a screening company, and even those companies charge differently.
This is where many companies, especially small businesses, fall into a dangerous trap. Since cost is an obvious concern, it is tempting to simply look for the cheapest option you can find.
Many believe that to be the “instant” background checks offered by numerous online companies. Many charge less than $20 for what they claim is a “national” criminal search. What could be better? It fits in your budget and covers all the criminal records you would need.
|Background Checks & Online Databases|
The truth is, there simply is no such thing as a “national criminal check”. No national repository exists. There is also no additional verification through the courts with this kind of check. This can lead to inaccurate results.
Therefore, relying on this information for making your hiring decisions is unwise. (You can find more about this in “Background Checks and Online Databases ~ What You Need to Know”)
It is important that you understand what sources really should be used for gathering the best information. The most reliable records are those found directly through the courts. This most often means at the county level (although state, federal, and sometimes magistrate level courts are frequently checked).
It is best practice to investigate the courts in each county where the applicant lived, worked, or went to school for the past 7 years.
This may seem like overkill when you are worried about your company’s bottom line. However, it is possible to get accurate and reliable information that is still within your budget.
The key is to find a background check company that specializes in small business. You will find that they are focused on finding a way to balance your budget with your hiring needs ~ without sacrificing quality. (You will find more tips on Choosing the Right Background Check Company for You here.)
|Choosing the Right Background Check Company|
First and foremost, they will listen to you before recommending the right scope for your background check. They will not try to sell you on screening services you don’t need.
A good background check company knows that the best way to accomplish this is to fit the background check to the job you need filled. This starts with examining the job description.
For example, if you are looking to fill an entry level or hourly position, the right background check company will suggest a basic criminal search of the appropriate county(s).
Many county criminal court checks can be done for around $20. This should fall within your budget, and there are times that this alone may be just what you need.
However, if an upper level position needs filled, then a more in-depth check would be recommended.
Read more about this in “One Size Does Not Fit All ~ Why You Need to Fit the Background Check to the Job”.
|Why You Need to Fit the Background Check to the Job|
Using this guideline can definitely save you money, while still giving you quality results. A good background check company understands this.
What you also need to remember is that the cost of a “bad hire” will far outweigh the costs of a good background check.
According to a Careerbuilder.com survey, “More than half of employers in each of the ten largest world economies said that a bad hire has negatively impacted their business”. And, among those U.S. companies having had a bad hire, “27 percent reported a single bad hire cost more than $50,000” (Source1).
The survey cites the negative impacts of a bad hire as “lost productivity”, declining “employee morale”, worsened “client relations”, “fewer sales”, and additional “cost to recruit and train another worker”.
When making a bad hire, there is also the possibility of opening your company to a negligent hiring lawsuit.
All of these can harm your company far more than the cost of your initial background check.
So don’t think that a good background check is out of reach. You can get the quality information you need within your budget. All you need is a good background check company to help!
Remember, while it is important for you to watch your small business budget, there is no need to eliminate using background checks to do it.
If you would like to find out more,
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Source1: Careerbuilder.com Survey