[aa_subtitle_display]We recently posted about the benefits and reasons to conduct background checks on your employees.

And while there are many reasons in favor of doing so, there are also some downsides to conducting these checks, too.

Since we know that it is important for you, as a business owner or leader, to consider the ups and downs of all situations before making an informed decision, take a look at the cons of conducting background checks.


The Cons of Conducting Background Checks on New Employees at Your Company

They can be costly

These background checks can be costly to conduct on your employees. Before committing to using them at your company, it’s important to analyze and determine whether the cost-benefit is in your favor.

Depending on how in-depth you want one of these investigations to be, they can range in cost from around $50 per person to hundreds of dollars per individual.

You will need to determine whether this is an expense your business wants to take on.

Possible mistakes can occur

In every background check conducted, there is the possibility of mistakes occurring. When this happens, it could deter you from hiring an individual or could even lead you to wrongfully firing a valuable employee.

This could result in the need for costly additional investigatory measures to be taken or even a lawsuit from an employee or potential employee that was erroneously turned down or fired because of the background check mistakes.

This being said, in rare instances these reports may do more harm than good, which is something to consider and be aware of.


It could reveal alarming things about current employees

If you are just starting background checks and decide to retroactively do them on your current employees, it may uncover an abundance of facts about those individuals that you were not expecting.

For instance, you could learn of an employee’s criminal background that you were unaware of.

This may put you in a sticky situation, leaving it up to you to decide if that newly uncovered information merits firing that employee, even if they have been dedicated and loyal to your business as well as a hard-working employee since being brought on board.

They can be time consuming

Making a commitment to conducting background checks on employees can certainly be time consuming. Conducting these investigations also dictates that certain laws and regulations must be followed.

These include how notice is to be given to the applicant, how written permission is to be obtained from the applicant, and how the confidential information obtained must be handled and disposed of. Managing these reports takes planning and attention.

How a PEO Can Help

A PEO can be helpful in deciding whether background checks are right for your business. Furthermore, they can be instrumental in implementing them and all the intricacies that come along with requiring them at your company, should you decide to do so.

Call us today to receive a complimentary competitive analysis to find the PEO that will best match the needs and culture of your business.

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