Protecting a franchise from harm is an important investment, which is why companies invest in insurance. However, your employees are the most valuable resource, so protecting your company from poor hiring is critical.

Consider that the cost of replacing a single poor hire amounts to 30 percent of the first annual earnings of that employee. If you hire an employee at $30,000 per year, the cost to replace them may be $9,000.

Safeguard your growing venture with franchise background checks for new employees and staff.

Applying a franchise background check to company policy can protect the franchise, its employees, and its customers against destructive or inept employees.

Background screening can uncover everything from illegal drug use to work experience to criminal history. Knowing this information can reduce accidents, theft, and workplace violence.

Background Checks Protect Customers

The positive experiences of your customers are a top priority as they will more likely incite a return visit. Keeping customers safe is important, and so is building a favorable company image. Effective employees help customers feel good about the company with whom they do business. This goes for both employees in Business to Community (B2C) and Business to Business (B2B) environments.

Business owners must provide a safe environment in order for customers to thrive. Protecting the value of good customer service means checking who you hire and how their history could affect the future of your franchise.

Know State and Federal Laws

Each state has different laws regarding background checks. Knowing them can help avoid unlawful conduct. Here are a few examples:

  • New Jersey gives employers the right to obtain information about convictions and pending arrests or charges to determine an applicant’s qualifications for employment.
  • Rhode Island deems it illegal for employers to ask applicants on a standard application form, in an interview, or otherwise, whether they have ever been arrested or charged with any crime.
  • Georgia law allows employers to obtain criminal records on applicants from the state’s Crime Information Center with the applicant’s fingerprints or written consent. Specifically, probation following a first offense is not considered a conviction, and employers may not disqualify applicants on this basis once their probation is complete.

These are just three examples that show the wide variance in background screening law. But in fact, dozens of states across the country uphold a “Ban the Box” initiative, which prevents employers from asking about prior criminal history on job applications.

Ban the Box requires hiring managers to forestall inquiring into a candidate’s criminal history until after an interview has been conducted or a provisional job offer has been extended.

To stay on the right side of the law in any given jurisdiction, it’s very important to speak with a knowledgeable third-party background screening company that can help determine what laws must be followed.

Many Franchise Agreements Include Screening Requirements

Review your franchise agreement to ascertain whether screening is required for your company.

Franchise owners can use background checks to help protect against break of contract lawsuits. If an incident happens within the workplace and screenings have not been conducted, the employer may be liable for a breach of contract claim.

In most cases, the franchise contract will go over the terms of background checks and how hiring managers should conduct interviews. Abiding by these guidelines can potentially prevent lawsuits.

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