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Should Small Businesses Conduct the Same Level of Background Checks as Fortune 500 Companies?

Same Level of Background Checks as Fortune 500 Companies for Small Businesses?

You’re a small business owner who’s looking to hire. So, should you conduct the same level of background checks as Fortune 500 companies? Here’s why the answer is YES!

Why Are Background Checks Important for Small Businesses?

Ultimately, background checks protect organizations regardless of their size. Top benefits include:

  • Improved Hiring

    Bringing the wrong person into your organization is highly disruptive. You’ll need to deal with the damage they cause and/or let them go. Fortunately, pre-employment screening helps you avoid these messy situations. You can gain insights into a new hire’s qualifications and personality before adding them to your team.

  • Less Risk

    A bad hire could harm a customer, steal money, or leak company secrets. Plus, you may face a negligent hiring lawsuit if your organization knew or should have known an employee was a risk. All these scenarios could be extremely costly.

  • A Better Reputation

    Companies have a responsibility to keep their employees, their customers, and the public safe. Skimping on background screening reflects poorly on your organization. Even a single news-worthy incident could seriously damage your hard-earned reputation.

Additionally, you could argue background screening is MORE critical for small businesses. After all, Fortune 500 companies employ tens of thousands of people, whereas small businesses have teams of 50 or less. Thus, a single bad hire at a small organization usually has a far more significant negative impact.

Should Companies Screen Differently Based on Their Size?

In most cases, screening procedures should be based on an employee’s position rather than on an organization’s size. For example, the Federal Motor Carrier Safety Administration (FMCSA) requires specific background checks for truck drivers. It doesn’t matter if the driver is working for one of the world’s largest companies or a small family-owned business. Similarly, it makes sense for small-business executives to undergo more rigorous screening than warehouse workers at a Fortune 500 company.

Tops Tips for Small Business Background Checks

  • Find a PBSA Accredited Provider

    Background checks are expensive. Therefore, as a small organization, it’s tempting to search for cheaper alternatives. Regrettably, this strategy can backfire. Look for screening firms accredited by the Professional Background Screening Association (PBSA) for the best results. These providers represent the highest industry standards. They will assist you in uncovering the most thorough information while also remaining compliant with federal, state, and local laws.

  • Ask About Custom Packages

    Since Fortune 500 companies conduct hundreds of screenings at a time, package deals make sense. Yet, for a small organization, these standard checks may not be appropriate. Often, you’ll end up paying for unnecessary data. Luckily, some background check providers cater specifically to small businesses. They’ll design customized packages, so you get only the information you need at a more affordable cost.

Is Your Small Business Ready to Run Background Checks in WNY?

Metrodata Services offers screening services in Buffalo, NY, and beyond. As a PBSA accredited provider, we partner with over 600 small, large and medium-sized businesses nationwide. Whether you’re looking for standard or customized packages, our team would be happy to help. Contact us today to explore all the options!

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