Sunday, January 25, 2015

Think a Good Background Check Costs too Much? Think Again!

We 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 we understand.

As an entrepreneur, your funds are often pulled in all different 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.

However, it is possible for you to get a good employment background check that fits in your budget...if you do it right!

There are a lot of different kind of background checks out there with varying costs attached. It is possible to do anything from a quick internet search to hiring a screening company ~ and even those companies charge differently. And if you look at all the services offered, your cost can add up quickly.

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 option can be found in 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.
The truth is, there is simply no such thing as a “national criminal check”.  

No national repository exists. There is not one location where all the criminal records on each and every person are housed. There is also no additional verification through the individual local, county, and state 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”. 

Instead, it is important to understand what sources really should be used for gathering the best information ~ and the most reliable records are those found directly through the courts. Most often this starts 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 gone to school for at least 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 tips to help in Choosing the Right Background Check Company for You here.

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. 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 you choose 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”.  

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 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 potential negligent hiring lawsuit.    

All of these effects can harm your company far more than the cost of your initial background check.

A Good Small Business Background Check Doesn't Have to Break the Bank! "Tweet This"

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, API is here for You.

  We are here to talk with you about your specific company needs.  

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Source1: Survey

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