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9 Reasons Why Start-Ups Should Do Background Checks

Tammy Cohen, PHR, SHRM-CP

March 29 2022

Since many things go into starting a company, it’s often hard to prioritize. Over 33 years ago when I started InfoMart, I learned early how important it was to do background checks.  As a start-up, I did a basic criminal search and verifications but did not invest in drug testing.  Yes, I know how crazy that sounds, but sometimes you have to learn the hard way.

We spoke to business owners and industry experts who agree that investing in background checks for candidates should be one of your first priorities. From ensuring investors’ confidence in your start-up to eliminating potential lawsuits, there are many ways background checks could prove to be an essential part of your small business’s hiring strategy. Read on to discover the benefits of screening candidates.

Prepare for Growth

The launch of a new business comes with great ambitions; start-ups dream of becoming the next Facebook or Apple. If you’re expecting to grow into a major company, it is sensible to carry out the same practices and policies as significant established companies when screening and interviewing new applicants.

Amit Raj, The Links Guy

 

Save Valuable Time

The hiring process can take a lot of time, with many hurdles for the HR team to jump. However, a background checkcan actually save time. I’ll explain why.

Once you establish your short list of candidates, a second interview isn’t necessary until you determine that the applicant’s background history meets your company’s standards. Some companies spend time on multiple interviews only to find that a candidate is not hirable. Establishing an employee’s clean background early on can save plenty of valuable time – for both the applicant and the employer.

Lauren Kleinman, The Quality Edit

 

Reassure Investors

Most start-ups don’t happen by themselves; building a start-up usually involves a great deal of networking and fundraising. When investors put their money into a start-up, they want reassurance that the company is making safe and smart decisions in every aspect of their business strategy, including hiring. Background checks are essential for putting investors’ and fundraisers’ minds at ease.

Stewart McGrenary, Freedom Mobiles

 

Safeguard Against Lawsuits

A start-up should perform a background check on candidates to protect itself from potential legal issues.

Any time a business is considering hiring someone, it’s important to do a background check to uncover any criminal history that the candidate may have. This is especially important for start-ups, as they are often more vulnerable to lawsuits than larger companies. By doing a background check, you can avoid any negative legal consequences that may come from hiring someone with a criminal record.

Claire Westbrook, LSAT Prep Hero

 

Protect Company Data

Those with a criminal background could potentially compromise your company’s data security, which would be detrimental to your company. It is worthwhile to do background checks because you would not want to hire someone who could potentially harm your company in any way.

Jared Hines, Acre Gold

 

Reduce Vulnerability

Negligent hiring suits are expensive, time-consuming, and reputation-damaging. Luckily, performing a standard background check on applicants is a simple way to prevent them. Start-ups might be more flexible than larger companies, but they’re far more vulnerable. Even though many start-ups hire through personal relationships and recommendations, there should still be a standard background check policy in place to protect the company.

Michael Williamson, Hoist

 

Confirm Qualifications

When trying to get your start-up off the ground, there can be tremendous pressure to make the right choices since any wrong choice could be detrimental to your business. Background checks ensure that the candidates you’re hiring can meet the demands of the job. Let’s face it, at the beginning of an entrepreneurial journey, there simply isn’t enough money to hire as many people as you want, so it is crucial to ensure you hire people who meet a wide range of requirements and skillsets.

By confirming the work and educational experience of a candidate through a background check, you can make more confident hiring decisions for your start-up. The more confident you are in your hires, the more you can focus on growth.

Peter Robert, Expert Computer Solutions

 

Protect Your Brand Image

Starting a company comes with responsibilities, and who you’re hiring is one of them. Nobody wants to invest in someone who isn’t a potential candidate or who can put a company’s image at risk. Hence, it is important for start-ups to do a background check for their own protection. This not only lowers the risk of damage to the company’s image, but it also helps you hire the best candidate possible to grow your business.

Meera Watts, Siddhi Yoga International Pte. Ltd.

 

Ensure Team Strength

Ensuring you have a strong team to help get your business off the ground is crucial for longevity. Every start-up’s first employees help build the foundation of the company, so doing background checks is critical. One reason to perform a background check on candidates is to ensure you create a safe environment for your company and audience. Understanding each candidate’s criminal history through a background check can make sure a problematic hire does not affect the foundation of your start-up. Without a background check, you could be hurting your business’s reputation, which is needed to secure a dedicated audience.

Brett Larkin, Uplifted Yoga

 

Prioritizing background checks will get your new company off to a great start, building a solid foundation from which you can grow. To get the most out of your investment, be sure to choose a reputable background screening company. With over 30 years of experience and a team dedicated to innovation, InfoMart provides reliable, customizable screening solutions that stay up to date on the latest compliance protocols. Don’t wait until it’s too late; ensure you’re hiring the most qualified and trustworthy candidates for your start-up today.

 

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About Tammy Cohen

Tammy Cohen, an industry pioneer and expert in identity and employment screening, founded InfoMart 30 years ago. Deemed the “Queen of Screen,” she’s been a force behind industry-leading innovations. She was most recently the first-to-market with a fully compliant sanctions search, as well as a suite of identity services that modernizes talent onboarding. Tammy revolutionized the screening industry when she stepped into the field, developing the first client-facing application and a due diligence criminal search that has since become standard for all background screening companies. Cohen has received national awards and honors for her business and civic involvement, including Atlanta Business Chronicle’s Top 25 Women-Owned Firms in Atlanta, Enterprising Women Magazine’s Enterprising Women of the Year award, the YWCA of Northwest Georgia’s Kathryn Woods Racial Justice Award, and a commendation in the 152nd Congressional Record. To learn more about Tammy, visit www.tammycohen.com.

About InfoMart

InfoMart has been revolutionizing the global background and identity screening industry for 30 years, providing businesses the information they need to make informed hiring decisions. They develop innovative technology that modernizes talent onboarding, including a first-to-market biometric identity authentication application and a verified sanctions search. The WBENC-certified company is a founding member of the Professional Background Screening Association, and they have achieved PBSA accreditation in recognition of their consistent business practices and commitment to compliance with the FCRA. The company is dedicated to customer service, speed, and accuracy, and it has been recognized for its success, workplace culture, and corporate citizenship with over 45 industry awards. To Get the Whole Story on InfoMart, please visit www.InfoMart-USA.com, follow @InfoMartUSA, or call (770) 984-2727.

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