4 Reasons Employers Should Avoid Conducting Their Own Background Checks

Conducting background checks on potential employees is a crucial step in the hiring process. However, while it may seem cost-effective for employers to conduct these checks themselves, there are several compelling reasons why this approach can be fraught with risks and challenges. Here’s why employers should consider professional background screening services instead of attempting to handle it in-house.

1. Compliance and Legal Risks

Complex Legal Requirements: Background checks are governed by a myriad of laws and regulations, including the Fair Credit Reporting Act (FCRA) in the United States, which outlines specific procedures and disclosures that must be followed. Non-compliance can result in severe penalties. According to SHRM, failing to comply with FCRA regulations can result in fines and lawsuits, which could be financially devastating for a business.

Ban the Box Laws: Many states and municipalities have implemented "ban the box" laws that restrict when and how employers can inquire about a candidate’s criminal history. Navigating these varying regulations can be complex and risky for employers without specialized knowledge.

Privacy and Discrimination Issues: Improper handling of personal information can lead to privacy violations. Additionally, if background checks are not conducted uniformly, employers risk claims of discrimination. Professional screening companies are well-versed in these laws and can help mitigate such risks.

2. Accuracy and Reliability

Limited Access to Data: Professional background screening companies have access to comprehensive databases and verification tools that are not readily available to the public. This means that DIY background checks can miss critical information, leading to hiring decisions based on incomplete or inaccurate data.

Potential for Human Error: Conducting background checks manually increases the potential for errors. Mistakes in data entry, misinterpretation of results, or overlooking important information can lead to costly hiring mistakes.

Expertise in Verification: Background screening companies employ trained professionals who specialize in verifying information such as employment history, education credentials, and criminal records. Their expertise ensures that the information obtained is accurate and reliable.

3. Time and Resource Intensive

Time-Consuming Process: Conducting thorough background checks requires significant time and effort. For small and medium-sized businesses, this can divert valuable resources away from core business activities. According to a report by Business News Daily, outsourcing background checks can save employers considerable time and allow them to focus on their primary business functions.

Efficient Turnaround: Professional screening services often have the resources and systems in place to conduct background checks quickly and efficiently. This helps speed up the hiring process, allowing businesses to fill positions faster and more effectively.

4. Cost Implications

Hidden Costs: While DIY background checks might appear cheaper initially, the hidden costs of potential legal issues, lost productivity, and bad hires can far outweigh any savings. Fines for non-compliance with background check regulations can be substantial, with some cases resulting in millions of dollars in penalties.

Investing in Quality: Partnering with a professional background screening company is an investment in the quality and safety of your workforce. It ensures that you are making informed hiring decisions that protect your business from the risks associated with inadequate screening.

While the idea of conducting your own background checks might seem appealing to cut costs, the potential risks and complications far outweigh the benefits. By outsourcing to a reputable background screening company, employers can ensure compliance with legal requirements, obtain accurate and reliable information, save time, and ultimately make better hiring decisions. This strategic move not only safeguards the business but also contributes to building a trustworthy and competent workforce.

For employers seeking a reliable partner in background screening, VeriCorp offers comprehensive services designed to meet all regulatory requirements and provide accurate, timely results, ensuring peace of mind throughout the hiring process. Contact us today!