Do Background Checks on Your Employees

Unfortunately, fraud and other workplace problems caused by employees can undermine the success of a small business. It’s been reported that fraud costs companies with fewer than 100 employees about $127,000 per incident. One-third of all employees admit to stealing products or money from the job within the last three years. Take preventative measures to limit your exposure to these problems.

Screen potential employees
It’s been estimated that 40% of applicants lie on their resumes. Some of this misinformation may be innocuous, but some may conceal criminal backgrounds and other problems you may not want to touch. Don’t put anyone on the payroll before you do a background check.

Barry Nadell, president of InfoLink Screening Services, Inc., a leading nationwide background investigation company (www.infolinkscreening.com), advises small businesses to invest the time and expense in checking out anyone they’re thinking of hiring.

When interviewing a job applicant, obtain permission to conduct the type of background check you want (e.g., checking the applicant’s credit history).

The extent of pre-employment screening depends on the nature of the job you’re filling. If it involves any driving, you’ll want to know whether the applicant has any moving violations or has been involved in accidents.

A basic search includes verification of the person’s Social Security number, prior employment, motor vehicle record history and a criminal history report. The cost for Social Security verification, county criminal history and a motor vehicle report through InfoLink Screening Services is just $26.80.

More thorough searches include verification of education claims, workers’ compensation history, judgments and liens, credit history and prior employer’s drug and alcohol drug tests.

Use a reputable company to perform your background checks. This will ensure compliance with the law as well as reliable results.

Other checks and balances
When it comes to your company’s money matters, don’t leave everything in the hands of one person. For example, don’t let the bookkeeper review your monthly bank statements – you (or your accountant) should handle this function to double-check that money you expect to be in your account is, in fact, there.

Consider testing for controlled substances as a condition of employment. The law allows this type of testing.

In some cases, you may even go so far as to require polygraph tests. Make sure you understand the circumstances when they are permitted and costs involved.

Consider screening consultants (non-employees) who may be on your premises.