Starting a new business can be risky, especially if you plan to go into business with other people who you may not know that well. This could be anything from starting a partnership hiring a lawyer or accountant or even employees. Mitigate this risk by hiring a private investigator to conduct a background check on your employees and potential future business partners.
Why are background checks necessary?
Replacing employees can be very costly, so it’s important to make sure you make the right hiring decisions. According to an article published by CBS, the cost of replacing an employee could be as much as 20% of that employee’s annual salary. Part of making the right decision is having all of the necessary information. A background check will give you even more information to make your decision.
Not only will the background check save you money, it will also help protect you from hiring an employee with a criminal record. Your employees and business partners will be interacting with your customers and handling your money. You want to be sure you hire and work with people who have integrity and reliability.
How do background checks work?
A background check can uncover information about a candidate’s character or past. You can also gain insight about your potential new hires and determine if they’ve been honest during the selection process. If you’re conducting a pre-employment background check on a new hire and are using a third party, it must comply with the Fair Credit Report Act.. This also means that you must get the consent of the prospective employee before the background search.
A private investigator can find out about debt problems which could be motivation to commit fraud or embezzlement from your business. Private Investigators can also uncover past lawsuits, if your candidate has been sued or has sued others in the past.
What information will I need?
In order to conduct a background check in a business workplace you will need to ensure that all checks fall under the Fair Credit Reporting Act, this means that you must have permission to run an employee’s credit report. In situations where this is unavailable there are other types of background research that can be conducted.
In addition any additional information you can provide the investigator will be helpful. Gather information from the candidate’s resume or LinkedIn profile to get a list of previous employers or business partnerships. A private investigator can verify that this information is correct and also look into lawsuits, bankruptcies, and IRS levies that may exist.
If you are starting a new business, you want to eliminate risks that could potentially derail your success. The information you can gain by conducting a background check will reduce these risks and help you accomplish your business goals.
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