Passion and persistence are the hallmark of many SME leaders. Embracing failure and being willing to learn – this is what sets these successful leaders apart. Some things, that you just don’t want to fail at as an SME leader. Like hiring… There just isn’t enough wiggle room for error when it comes to building your dream team.
“Every client interaction, product and invoice reflects on you and your company and one bad experience can make or break your reputation,” writes a blogger for Glassdoor.
Why background check:
Knowing a potential employee’s history is essential for employers of any size. But especially so for small and medium-sized companies. Why?
- SMEs often have masters of many trades. They need generalists who aren’t afraid to tackle projects outside of the strict scope of their roles. This means they might have access to accounts and confidential information that their counterparts in larger business might not have. It’s situations like these that drive us to find people with sound, solid histories. Background checks confirm reliability or wave red flags.
- Face it: it’s human nature to embellish, even just a tad. And it should come as no surprise that 37% of employers who reported a bad hire said it was because the employee lied about their qualifications. Vetting a candidate improves your chances of finding false or missing information, straight off the bat.
- As an SME leader, you want the best for your business. This involves protecting everything you have already built. The business reputation… Your great team… The customers you value… We’ve all read about those worst-case scenarios where an employee does something that endangers customers or colleagues and leaves the company in hot water facing legal action. Background checks can help you avoid this entirely
- Let’s not forget the cost of replacing an employee who doesn’t work out. Low estimates begin at 50% of a person’s salary and climb north of 200% for top executives. The latest Aldermore Future Attitudes report revealed that 67% of SMEs (representing 3.82 million small and medium-sized businesses across the UK), find talent attraction and retention tricky. 76% of SMEs in the UK want to minimise employee churn. Sure, it saves time to hire someone without thoroughly them. But thoroughly vetting your employees in the beginning actually saves an incredible amount of time, money and frustration down the road.
- And there’s always the possibility of negligent hiring lawsuits. Most small businesses don’t have the human or financial resources to face litigation. Performing a background check on a potential employee can protect you from these sorts of nasty unforeseen costs.
With so many reasons to conduct background checks before hiring new team members, the only real question is ‘how do you do it?’
Thanks to technology, running a background check is easier than you might think. Do it yourself. Automate. The choice is yours…
How to do background checks:
Option 1: Manual Checks
DIY is often the most attractive option for SME it comes with its challenges. All the data is available if you know where to find it and are willing to pay the fees. The thing is: you’ll need a broad understanding of background checking processes and regulations. And this is a pain in the behind, to say the least. It’s an unnecessary chore and it could take a long time before you get the info you need this way.
Option 2: Outsourced Suppliers
Outsourcing is a relatively speedy alternative and is certain to comply with the latest regulatory requirements. There are plenty of companies out there who offer full background checking and screening packages. Whoever without the economies of scale extended to larger enterprises hiring lots of employees and needing loads of checks, SMEs often find these services too expensive. And so they either don’t perform the checks or they try and do it manually (refer to Option 1 above to be reminded why that’s a bad idea. #JustSaying).
Option 3: Leveraging Technology
Automation offers the best of both worlds. Often designed with SMEs in mind, these online tools give you access to all sorts of background checking data sources. Automated platforms are configured for up-to-date regulatory compliance and do a lot of the work for you. Allowing you to automate the background checking process based on the vetting criteria you request for the position you’re looking to fill. Not to mention the fact that it’s far cheaper than outsourcing, and you can run as many or as few checks as needed without incurring extra charges.
We can help you understand your options and determine which avenue is best for you here.