Small Businesses Need Background Checks to Survive in Uber-Competitive Global Economy

Straight from the U.S. Small Business Administration Office of Advocacy come the following figures from 2009:

 

-         The almost 30 million U.S. small businesses employ over half of the country’s private sector workforce.

-         U.S. small businesses hire 40% of high tech employees.

 

This is the good news.  The bad news is that about half of all new small businesses close within five years of opening their doors. 

 

Much of the problem can be laid at the feet of the uber-competitive environment of a global economy.  Fast-paced services and innovative products have forced small businesses to stay at the top of their games.  And that means they don’t have time to deal with avoidable personnel issues… like hiring the wrong person.

  

That’s Levitra 10mg one of the reasons that background checks performed on all employees are absolutely essential for any small business that wants to succeed.  Not only are background checks a method of protecting a company’s reputation, but they can also mean the difference between being around for a five-year anniversary… or not.

 

Fortunately, background checks are available at an excellent value, even for start-ups with modest budgets.  And they offer a return on investment very quickly.  (Hiring mistakes can bring a small business to its knees.)

 

If you’re a small business, prepare yourself to be around for the long term.  Background check every worker you hire, including consultants.  Doing so will give you a leg-up on the competition.

 

 

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Top 5 Excuses for Not Background Screening And Why They Are Inaccurate

So you’re not going to background screen your new employees?  If that’s the case, chances are good that you’re using one of the excuses below. 

 

Before you totally ditch the idea of background checking potential workers, we urge you to read through our feelings on the most common excuses we hear against background screening.

 

1.  There aren’t really that many criminals out there.  It’s all a bunch of hype.

 

Are you really prepared to bet your company’s bottom line on this?  Surprisingly, there are plenty of criminals out there… and they don’t come with signage.  In fact, more people than ever are telling “little white lies” on their resumes.  You can’t ferret them out without background screening.

 

2.  Background screening is very, very expensive.

 

The opposite is actually true.  Though you will pay a cost for comprehensive background screening measures, the more people you hire, the less you’ll pay per person.  In the end, it definitely is an investment in the security of your company and personnel.

 

3.  I can do my own background screening online.

 

This is half-true.  You can do a lot of checking via Google electronic cigarette supplier china and other sources.  But you aren’t going to get the full picture.  That cannot be done online alone.

 

4.  Background screening is for big companies, not for my small business.

 

We hear this quite often, and it’s not accurate.  In fact, small businesses have more to lose in some ways if they make a bad hire than do their larger counterparts!  For instance, if you only have 15 people working for you and one of them is a criminal, 1/15th of your staff is a problem.  If you have 500 people working for you and one of them is a criminal, that’s 1/500th of your staff. 

 

5.  How much damage can one person really do?  I watch my books like a hawk!

 

You may think you’re the best manager of your finances… but smart thieves have been known to pull the wool over the eyes of the most competent supervisors.  It’s not your fault; it’s just that if a criminal wants to do something badly enough, he or she will find a way to try to make it happen.

Still think that background screening is unnecessary for your company?

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Importance of Employment Verification — “But He Said That Was Where He Worked!”

“But the resume said she worked at ABC Company!”

It’s amazing how often employers are shocked when they find out (after the fact , of course) that someone didn’t work where he or she claimed to have worked.  But whose fault is it that the person was hired?  Noneother than the employer!  After all, the discrepancy could have easily been ferreted out with a simple employment verification.

The problem for many companies is that true employment verification takes time and energy… and organizations (especially small businesses) don’t always turn their manpower over to the task.  Instead, they assume that all resumes that come across their desks are on the up-and-up.

In the end, they are often surprised when they find out from a screening company like VerifyProtect that their “perfect” job candidate lied about where he or she previously worked -or- at least fibbed about the job he or she held there. 

Believe us — we’ve seen and heard it all, from flat-out lies to half-truths that would make Pinnochio blush.  In the end, it’s why we always recommend employment verification if you’re serious about hiring someone for all the right reasons!

Why Really Small Businesses Still Aren’t Background Checking Employees

Even though businesses of all sizes know that they should ideally be checking the backgrounds of every person they hire, many very small companies are still wavering in their commitment to do so.Why aren’t these smaller organizations protecting themselves by conducting background checks on new hires? Though their reasons vary, here are a few of the most common excuses:

- They think that background screening is too costly. Though it’s actually quite economically-priced (check out the affordable options at our site!), business owners are worried that background checks will somehow negatively affect their bottom lines.

- They haven’t hired before and don’t know how to work with a background screening company. For these business owners, not conducting background checks happens because they simply are not aware of their options.

- They don’t hire very often. If there isn’t a hiring process at the company, background screening of applicants won’t be part of the culture.

- They feel they can hire based on “gut instincts”. As any entrepreneur who has been burned by a bad employee can attest, the “guts” can be wrong.

If you’re the founder or president of a very small company, don’t allow any of the above excuses to keep you from performing background checks on any person who will be on your payroll. In the end, it’s the smart thing to do.

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  • Pre-Employment Background Checks – Right for EVERY Company

    There’s a huge misconception that the smaller the company, the less likely they are to need pre-employment background checks.  But that’s just a myth.  In reality, it’s just as important for even small corporations to make certain that anyone they bring on board is going to be an asset — and not a liability — to the organization.

    A recent post from the American Banking News site hit that fact home… hard.  In the piece, the author makes mention of the following:

    “…how is it possible for a company to be too small to run background checks on employees? Is it less likely to matter if a small company hires someone with a history of committing violent crimes that for a large company? Is a sexual predator less likely to strike again if he works for a tiny business than a multinational conglomerate?

    “If you find yourself facing a negligent hiring lawsuit because you hired an individual with an issue that you should have known about prior to hiring the person, you’ll learn the hard way why spending money on background checks prior to hiring is an essential expense that is well worth the nominal cost.”

    Bravo to that! 

    Yes, it’s understandable for small businesses (especially those who are feeling the pinch of the economic downturn and turmoil) to want to save money, but pre-employment background checks should never be the place to “cut corners”.  Doing so is akin to inviting a tragic occurrence to happen.  And what company that wants to be around in a year can risk that?

    Be wise — background check each and every potential employee.  The small cost to do so could just save you thousands down the road.

    Background Screening: The Do-It-Yourself Myth

    Small businesses and upstart companies are typically run by very savvy entrepreneurs who are looking to maximize their profits by doing as much as they can in-house.  However, in the majority of cases it does not make fiscal sense to have staff members attempt to tackle the sometimes-confusing realm of new hire background checks and screening.

    Makes sense, right?  But how many times we’ve heard the following uttered by a frugal exec:

    “We’ll just do the background screening ourselves!  How hard can it be?”

    Such a statement is perfectly understandable when coming from a business leader who is in charge of a very tight budget; yet the utterance implies that he or she may not understand the full blown realities of conducting a thorough background check on a new hire. 

    It takes time to do it right. 

    And if an in-house employee who is unfamiliar with background screening tries to undertake the challenge of vetting applicants, copious amounts of “on-the-clock” time can be frittered away.

    So what’s the answer?  Obviously, it’s crucial to work with a company who understand the complicated processes of background checks and screening.  Look for those with a great reputation.  Plus, always remember that outsourcing this duty will free up staff members’ time to work on other projects as well as make certain that any background screenings are legally and efficiently conducted.

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