Thursday, April 21, 2005

Protect Your Business from Liability Through Employee Background Checks

According to a number of studies conducted in the human resource industry, inaccurate information or fraudulent claims of competence appear in 80% of all résumés. In addition, few prospective employees will ever volunteer background information about criminal behavior or financial mismanagement. Unless you take steps to check references and verify information, you could be deceived by people you need to trust.

As an employer, you are entitled to know who you are hiring before you tender a job offer. Additionally, you are legally obligated to know the backgrounds of the people you hire. Failure to conduct thorough background checks puts you and your company at risk, creating a negligent hiring liability that can threaten other employees and the future of your business. Many business liability insurance policies do not cover negligent hiring.