Should Your Company Run Background Checks on Future Employees? — Credihealth Blog

Background checks are an important part of any hiring process. It ensures that a company hires the right person for the job and also prevents negligent hiring lawsuits. However, oftentimes employers neglect this essential step, which has led some critics to argue that companies should conduct more thorough background checks on future employees, including criminal record searches and credit checks. In this article, there is a detailed discussion on why this must be considered a crucial part of a hiring process and how a business can save valuable time and effort by hiring an expert Washington background check company.

Employees background check: The current scenario

Some experts believe that all employers should run criminal record checks and credit checks on every prospective employee. However, most companies should only conduct these kinds of checks if they hire individuals who will be handling large amounts of money, such as accountants, bookkeepers, financial advisors, and others in the finance sector.

Many employers even have argued that running a background check on employees is too time-consuming and expensive. In fact, a recent survey revealed that almost half of the human resources managers interviewed said that their companies conducted no or only limited background checks on new hires.

This lack of due diligence has allowed many applicants with criminal records to land jobs at banks, insurance firms, and other corporate environments, despite having been convicted of fraud in the past. The employers later learn about their staff’s history only after it becomes public knowledge.

Employees background check: 6 reasons why it is necessary

There are several reasons why background checks are important, and they are as follows –

  1.     It helps prevent fraud: Many organizations have suffered from employees committing fraud against them. Often, the perpetrators get away with this crime because nobody thought to run a background check. For instance, one employee stole $2 million from his employer by creating fake invoices, forging signatures, and submitting false expense reports. He was eventually caught when he filed a fraudulent tax return using the same company’s information. If the employer had run a background check through a Washington background checks agency before offering the candidate a job, they would have found out that he previously worked for another organization, where he embezzled over $8 million.
  2.     It helps in reducing negligent hiring lawsuits: Companies need to know everything that they can about potential candidates so that they don’t end up making bad decisions. A negligent hiring lawsuit occurs whenever an employer fails to do their due diligence and ends up hiring someone with a criminal history or a negative history in terms of credit or finances. In fact, some experts have claimed that negligent hiring lawsuits have become quite common today. This is because more and more people are looking to sue companies for discrimination, especially those who were rejected for jobs based on their race.
  3.     It helps increase productivity: Research indicates that employees with criminal records may be less productive than others. For example, a study showed that ex-convicts tend to take more sick days and file more complaints than employees without criminal records. So, if a business wants to perform better, it’s best to conduct thorough background checks on all potential employees.
  4.     It helps improve workplace safety: Criminal records can indicate whether an applicant has a history of violence, drug abuse, or other similar issues. Therefore, employers should consider conducting a criminal records search using a Washington background checks company on all the candidates for the position they are hiring for. This way, they can be sure to hire good team members who can contribute positively to the company.
  5.     It helps protect the business and its customers: Once an employee is hired, they are often given access to confidential information about the company and its clients. Thus, the employer needs to be sure that this person isn’t a threat to their customers or to the reputation of the business.
  6.     It ensures the safety of other employees: If an individual has a criminal record, there’s a chance that they might cause harm to others, including fellow co-workers. In order to avoid such situations, employers should run criminal record checks on all their employees.


While it is true that running a detailed background check on every potential candidate might seem like overkill, it could help to prevent costly legal cases in the future. Also, it can ensure that an employer doesn’t hire a criminal or dishonest candidate who will steal from them or defraud their clients. An effective Washington background checks agency can provide all the services required to carry out a thorough background check, including searching databases from both the state and federal levels.

Disclaimer: The statements, opinions, and data in these publications are solely those of the individual authors and contributors, not Credihealth and the editor(s). 

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