As an increasing number of small businesses implement employment background screening, there are several important factors to consider when determining whether to conduct background checks in-house or to utilize an on-demand provider. Determining who conducts your background checks can be a critical factor in the effectiveness of your program.
While there may seem to be benefits to conducting background checks in-house, we’ll reveal five key challenges identified in the Small Business Spotlight that small businesses often face when conducing background checks internally, and how an on-demand background screening provider can help.
Cost cutting and managing the effects of the recession were the top two business challenges cited by respondents in the Small Business Spotlight. Background screening used to involve a steep investment in systems and personnel that only mid-sized and larger organizations could afford.
Now with easy to implement and affordable on-demand screening solutions, more small businesses are able to manage their background screening programs effectively. However, small businesses that elect to conduct background checks in-house may be left with a process that is labor intensive and more costly to perform.
The top two screening challenges reported by small businesses are getting timely results and reducing time-to-hire. An on-demand screening solution streamlines what was once a manual and disjointed process, thereby greatly reducing the turnaround time for receiving background screening results.
In a competitive hiring environment, those businesses with the quickest screening results and time-to-hire will often win the best candidates. Employers that attempt to conduct background screening in-house may fail to achieve the rapid turnaround times that on-demand background screening providers can provide.
Compliance with regulations at the state and federal levels topped the lists of business challenges and screening-specific challenges that small businesses face. In 2012 alone there were numerous changes in federal, state and local legislation that impacted nearly all background screening programs.
Partnering with a leading on-demand background screening provider can add value by providing access to compliance information and resources as well as tools integrated into the screening solution that can help to facilitate the organization’s compliance. Employers that choose to conduct background checks internally must continually ensure that their own processes and policies are compliant with evolving legislation and regulation.
4. Talent Acquisition and Retention
Attracting and retaining talented workers was cited as a top business challenge by 40 percent of small business respondents. With an on-demand background screening solution, employers can easily expand their employment background screening program to include additional checks such as education verification, drug testing, criminal background checks and credit checks (to the extent legally permissible).
These added background checks will help improve the overall quality of hires by identifying candidates that do not meet job requirements or show a history of undesirable behavior. For employers that conduct background screening in-house, each additional background check creates additional complexity, and may make it difficult to manage an effective program that identifies the best talent.
Growth is a major goal for many small businesses today. Without an on-demand background screening solution in place, small business growth can become a challenge for the over-taxed human resources department.
When a small business finds that it needs to increase its workforce to better meet demand, an automated screening solution is completely scalable and makes it easy to screen and hire an even larger number of new workers. An in-house solution may require additional personnel to achieve the same level of background screening productivity.
What are your biggest business challenges for 2013? Could background check companies help?
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