Believe it or Not, Background Checks Save Business Owners Money

by Guest on September 3, 2012

As any small business owner or entrepreneur will tell you, creating and running a company is no cheap venture. There are overhead costs to consider, operation expenses, rent and much more all weighing on your organization’s likely modest budget, so if an opportunity arises to save a few bucks, you should jump at it.

Well, one unlikely way for business owners and operators to scale back and save actually requires a little upfront expense, but is so worth it. What I’m talking about is conducting appropriate, thorough background checks on your potential staff.

Now, I’m sure many of you might be wondering how in the world paying for an employee screening can actually save you money, but to understand you must think LONGTERM. Below are just a few reasons why background checks are a wise investment for any new company.

They Save You Valuable Time

Neglecting to properly screen employees before bringing them on board can end up costing you big in the end. Let’s say that after 2 weeks, 1 month, whatever frame of time, you realize it just isn’t going to work out with this new hire. They are inconsistent, unreliable and have half the skills and experience they claimed to—all things a background check could have helped you see. In the interest of productivity, you know you simply cannot keep them on payroll, so you make the decision to fire them.

Sure, the negative energy, and counter productivity is no longer a part of your team, but this has now left you with a vacancy that needs to be filled, forcing you to start the hiring process all over again, which will in turn slow productivity as your now shorthanded team struggles to keep up with demand. That’s not very efficient now is it? Think of all of the potential profit and opportunity that could be lost during this time, a background check fee isn’t sounding too bad now is it?

They Weed Out Incompetence

Maybe the person you hire isn’t completely bad right away. They do just enough to get by and fly under the radar, until you realize that over time his or her work just isn’t up to par. Sure they can grasp minor issues, but when it comes to intense critical thinking the skills just aren’t there. This could happen weeks, months or possibly years down the road, and, just like the issue in the previous paragraph, can lead to slowed productivity as you backtrack to correct their mistakes and errors.

Essentially, rather than making your job easier, you find that their presence is in fact creating MORE work for you, which is unfair to the company as it might need your attention elsewhere. Had you properly screened this individual you might not have to be retracing their steps and doing extra work.

They Help Prevent Legal Issues/Conflicts of Interest

Another way proper background checks can save you time, money and lots of headache is by highlighting any legal conflicts or issues that may surround a candidate. This can range from anything as minor as a few overdue parking tickets to something as extreme as a fraud—all things you have a right to know about., as they can prove costly in the long run. Granted the detail depends on the type of and level of screening you opt for, but any information is better than none and gives you at least a starting point from which to work.

Overall, the whole premise that background checks can save you money comes from the same school of thought that states that it “takes money to make money.” So, if you’re starting a business and thinking of skimping on the background checks, I obviously advise you to reconsider. While it might be the more attractive option for now, you may end up regretting it down the line.

About The Author

Jane Smith is a freelance blogger and writer for backgroundcheck.org and various other websites. In particular, Jane likes to offer insight and advice about managing your online reputation, setting career goals, and making healthy life choices. She welcomes you to email her any questions or comments and can be reached at janesmith161@gmail.com.

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