I want to do a background check ... Where do I start?

Workplace violence and theft is a growing threat to today’s businesses. Violence costs companies nationwide over $30 billion annually. The median cost of a single theft at work is well over $100,000.

As if these costs were not bad enough, a concept called the negligent hiring theory is making these crimes even more threatening. According to this theory, your company is liable for its employees’ actions. If an employee harms a customer or another employee, your company may be sued.

However, taking reasonable steps to ensure workplace safety can help protect your company from these legal problems. One way to ensure safety is to implement background checks when hiring employees.

An effective background check geared at wiping out violence and theft may include a number of elements:

• Criminal: This check must be made with each state and only goes back so many years.
• Employment: This check verifies elements on an applicant’s resume, but also gives you an opportunity to learn about any former criminal behavior.
• Personal reference: This check provides information about an applicant’s values, sense of responsibility, and strengths. If the applicant chose a poor reference, that reference may also provide information about weaknesses.
• Court records: This check indicates an applicant’s character and financial disputes.
• Workers’ compensation: This check, only allowed after offering employment, gives your company reason to take back a job offer if a claim is missing from an application. It can be difficult to determine whether workers’ compensation has been used fraudulently.
• Driving record: This check can verify a social security number and address, but any driving violations may also reveal a lack of responsibility.
• Credit history: With signed permission, this check is a good source to verify the name, address, and social security number. It shows financial history.
• Social security number: This verifies not only the number, but addresses which can be used for other background checks.
• Education: This check verifies degrees claimed and the honesty of the person.

These items can expose some of the warning signs of a violent employee: withdrawal, disrespect of authority, a spotty work history, poor performance, a history of substance abuse, and/or violence toward others.

Also the check items, when used properly, go beyond safety. They work to keep your hiring costs and turnover down and protect your company’s reputation.

Avoid background check backfire. There are laws protecting the privacy of people. Plus, if used improperly, background checks can be ammunition in a discriminatory lawsuit against your company. Therefore, these checks must be done carefully.

To avoid background check problems:

• Have applicants sign an agreement to allow former employers to give your company or its representative information relating to the applicant, no matter how positive or negative the information is.
• Only search for information relating to the prospective employee’s job. For example, a credit check for an editor position might not be relevant.
• Consider using an outside source for performing background checks. This may ensure that the checks are done consistently for all employees.
• Get legal advice before implementing your own internal background checking process.