Don’t leave your company exposed: common risks of ignoring pre-employment background checks 

The risk of not performing background checks  

As you may already know, a pre-employment background check is an important part of any hiring process, as it provides employers with a way to ensure that they’re not taking on any unnecessary risks to their organisation. Specific checks are designed to capture any issues with a candidate, for example taking onboard someone who might have a criminal record or issues with their employment history. It also allows them to make sure that their new employee is legally allowed to work in the country and won’t be breaking any laws by joining their company. 

It is still a shock to see that many employers and businesses still neglect their screening strategy and run the risk of not performing background checks, as it is such an important tool in their recruitment process. This can lead to several potential problems further down the line of an individual’s employment. 

We’ve stated the nine risks of ignoring vital background checks within your screening process below: 

1. Legal liabilities – By not conducting the appropriate different types of background checks, businesses can be left exposed and liable for any civil or criminal proceedings that may occur due to negligence in verifying an employee's credentials or criminal records. Without proof that you had carried out all necessary checks before hiring a particular person, you might find yourself open to legal action—putting your reputation and financial stability in jeopardy. No organisation should risk that.

2. The risk of increased fraudulent activity by an applicant – If a candidatehas something to hide, such as fraud or criminal activity, then these will not show up unless an organisation goes through a comprehensive screening process prior to onboarding them into the business. Ignoring pre-employment background checks leaves companies open to increased risk of fraudulent activity within the workplace, and depending on the severity this could result in serious consequences for the business.

3. Unsuitable candidates & poor performance– When done correctly, conducting different types of background checks helps businesses identify where individuals may lack experience and qualifications for them to succeed in their role within an This helps businesses avoid candidates who simply aren't suited for the position they are applying for. In addition, overlooking background check procedures could also result in poor performance from unsuitable staff who slip through the net due to inadequate verification processes—leading to mistakes which can be both costly and damaging for a business’ reputation further down the line.

4. A high level of employee turnover andabsenteeism – A lack of attention paid towards background checks often leads to a high employee turnover rate. Employees that faked credentials when applying will struggle with job performance expectations whilst being unaware of laws related to their role within your organisation, leading them to leave due to higher levels of stress and dissatisfaction related to their inadequate pay and responsibilities. When this is compared with those who were properly vetted beforehand, the turnover rates are much lower, and employees tend to enjoy the role they are obviously qualified to do. Similarly avoiding thorough screening means that there may also be further absenteeism issues caused by individuals hiding medical conditions, which would otherwise become apparent during pre-recruitment assessment programs (such as driving tests) - leading towards unnecessary staffing issues later. 

5. Negative brand reputation – Failing to undertake comprehensive pre-employment background checks leaves an organisation vulnerable to substantial social media criticism and unwanted publicity for negative news stories. This can lead to a decrease in brand loyalty from existing customers as well as a disinterest in advertising from potential new clients/partnerships. An increase in negative stories and brand shaming can result in a costly downward spiral of poor repute and diminished profitability for an organisation in the long term. Not only that, but this could also lead to the most serious consequence of blacklisting from industry bodies who legitimately regulate the workplace behavior of businesses all around the UK.

6. Hefty fines – In the UK, laws have been introduced that require all types of businesses and then specific industries (such as healthcare providers) to comply with certain standards when conducting pre-employment screening. For example, all businesses in the UK are legally required to fulfil the Right to Work check on any employee applying for a role based in the UK. If any evidence should arise indicating that a business didn’t engage in these procedures, they could be highly open to receiving hefty fines and face all the associated risks of not performing background checks. 

7. Negative impacts on productivity levels – Not conducting the relevantbackground checks for a specific role can affect not only the productivity of the new employee, but also the rhythm of the entire department or business. Firstly, the poorly vetted candidate will be unable to match the levels of exploration & discovery expected of them within a given role, which in turn can impact their colleagues and eventually create a snowball effect across the organisation. This will then result in a state of depressed productivity levels across the board. 

8. A loss of investor trust – If your business is to continue to grow at the desired rate and maintain stakeholder confidence, it’s critical that every new employee’s screening and pre-hire background checks are taken seriously before they become part of the organisation. If any of the issues stated previously occurs, investors can lose faith in the legitimacy of the business and pull any funding they feel is necessary.

9. A massive increase in cost – This is perhaps one of the biggest downfalls to not performing pre-employment screening and the different types of background checks for a specific role. Not only is the wrong hire going to waste valuable time and resources into onboarding and training the wrong hire, but businesses will also be incurring more costs on replacing the wrong hire, the initial wages for the wrong hire, and ultimately, if any of the problems stated occur, organisations may have to pay hefty fines or pay for legal representation for example.

Choosing the right method of screening and defining a compliance strategy that suits an organisation is the best way to ensure that a business does not run into any of these problems. Access Screening provides an automated pre-employment background check solution that ensures you remain compliant with the Home Office’s Right to Work legislation and the introduction of IDVT Right to Work checks in the UK, and helps you keep on top of candidate's information when applying for a position.  

Dealing with a negative background check as an employer 

The percentage of negative background checks is decreasing but there will still be some businesses who will overlook it to avoid uncomfortable conversations. 

If a negative background check comes back from an applicant, it's important to handle the situation with care and respect. It is best practice to contact the candidate to discuss the situation and gain their side of the story to paint a full picture of the results, that way a business can obtain a proper understanding of the negative background check before making any final decisions.

After that initial discussion, employers can then decide on a fair course of action that satisfies all parties involved, whether it be rescinding the job offer or providing alternative options such as extra training or other opportunities. Ultimately, employers should strive to act in an ethical manner when dealing with any difficult situations related to pre-employment background checks. 

Getting a negative background check back from a candidate isn’t a bad thing. In fact, ensuring you can capture checks that return a negative result helps to ensure your screening process is working efficiently. By taking the time and money to invest in your screening software and compliance strategy, you can be sure to avoid any of the implications that can come from ignoring pre-employment background checks.