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CheckPoint HR, an innovator and leading Administrative Service Organization (ASO) that offers small- to mid-size organizations an integrated Human Resource Management System (HRMS) for payroll services, human resources, and benefits administration, today released its list of the top reasons why conducting employee background checks are essential. The list details the reasons why companies in all industries and of all sizes need to make background checks a standard practice in their hiring process.
1. Applicant Verification Increases Quality of Hire
Unfortunately, most applicants are not always truthful on job applications and resumes. Common fallacies include fabricating skills and educational experience, excluding negative information or fudging dates. Taking the extra step of running a complete employee background check provides an opportunity to validate the accuracy of the information provided by the candidate that could otherwise not be evaluated in an interview.
2. Avoid Workplace Theft and Violence
Uncovering a potential employee’s legal history can help companies identify those that may be at risk of engaging in violence and theft, both of which are on the rise in the workplace. According to a 2006 report by the Bureau of Labor Statistics (BLS), almost half of employers with over 1,000 employees reported an incident of workplace violence in the previous year. A background check can reveal an employee’s criminal history that may have been excluded on a resume, helping companies avoid dreadful legal issues and monetary losses in the future.
3. Don’t Go to Court
Organizations are held legally responsible for negligent hiring. Unfortunately, it’s become fairly common for a company to find themselves facing legal issues, so it is very important for a company to conduct a thorough screening process of all employees to mitigate legal risk. Legal trouble can result from serious offenses such as identity theft, data and financial breaches, to an invalid employee driver’s licenses, etc.
4. Reduce Turnover and Discipline Issues
Relying solely on a resume and an interview can lead to the hiring of a substandard or high risk candidate. Taking the extra steps to ensure the most capable candidates are selected will lower the turnover rates and decrease discipline issues. Also, diving deeper into a candidate’s employment history can help companies avoid hiring employees that have an unstable work history.
5. Create a More Productive Office
Running a background check reflects corporate responsibility and discourages dishonest behavior with applicants. Background checks also show current employees and clients you are willing to take the extra steps and time to ensure you bring the best employees into the company. This act shows employees you have their best interest in mind and seek to provide them with the most qualified co-workers. A satisfied and competent employee pool creates a more stable and successful work environment.
6. Not Just for New Hires or Pre-Employment
Organizations can develop and execute company policies that support ongoing evaluations for existing employees based on tenure, promotions, security, etc. in order to reduce risk. It’s important to note that employee acknowledgement and consent should always be be required.
“By hiring a new employee, you are entrusting them with your company and your clients. Therefore it’s your corporate responsibility to ensure a safe work environment and protect your company’s assets,” said Michelle Moylan, HR Specialist for CheckPoint HR.
Within CheckPoint HR’s innovative and integrated Payroll/HRMS technology, background checks are easier and more cost effective to conduct than ever before. Taking the time for due diligence in the beginning of the hiring process can save a company from unnecessary costs and months of legal and financial trouble.
About CheckPoint HR
Since 2001, CheckPoint HR, based in Edison, New Jersey, has helped small- to mid-size organizations automate all aspects of their human resource operations. As a leading Administrative Service Organization (ASO), CheckPoint HR’s innovative Web-based Human Resource Management System (HRMS) technology platform and payroll services offer an affordable, comprehensive solution to manage payroll and benefits administration, as well as other business-critical human resources processes. This allows small- mid-market organizations to deliver world-class services to its employees, reduce costs, and improve operational efficiencies. Clients include such names as The American Stock Exchange (AMEX), The Applied Companies, Croda, Inc., Flemington Family of Dealerships, Hamon USA, Kyowa Pharmaceutical, Nickelodeon Hotels, Quintum Technologies, and Starwood Capital. Further completing its HR management solutions, CheckPoint HR boasts one of the largest insurance agencies in the Northeast through The Wilshire Group, its benefits affiliate that offers its customers benefits procurement backed by a sales team of licensed insurance brokers. In November 2007, The Wilshire Group launched the BENeLERT™ Process, a 180-day proven practice to help clients identify the best rates and plans for their insurance needs.
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