About fifty years back, hiring a person was a simple process. All you had to do after receiving the application was a quick cross reference with previous employers and hire the person. In many cases, even that was not done; people were hired simply because a neighbor or a friend had something good to say about them. Hiring was a matter of gut instinct.

Not any longer. Today, this casual attitude towards hiring your employees could cost you billions of dollars in lost lawsuits.

Ø A security agency had to pay $3 million after their guard had stolen from a client. Subsequent checks revealed that the employee had a colorful criminal record.

Ø A sales firm had to pay $175,000 in negligent hiring lawsuits when its sales representative was caught forging signatures.

Many companies have lost millions of dollars in negligent hiring lawsuits because they did not uncover vital information through employment background screening.

The Society for Human Resource Management says that 95% of HR professionals in charge of hiring employees conduct employment background screening before they hire. This is a whopping 35% increase from the 60% who used to screen employees in the 1990s. There seems to be a reason for this sudden jump: more than 40% of job applications submitted in the US contain false or fabricated data. More than 9% of the employees who have agreed to get their backgrounds checked are hiding criminal histories. Thus, it is obvious that hiring is contingent on successful employment background screening.

A thorough employment background screening exposes information that was intentionally withheld or mistakenly omitted. Often, employees embellish the truth, particularly when it comes to educational qualification, expertise or experience. Such hidden information may have serious repercussions if it is discovered in a tricky situation. Needless to say, access to such data will stop you from hiring antisocial elements.

Employment background screening consists of a number of checks: background checks, drug tests and psychometric testing. This helps employers ascertain claims regarding qualification, education, previous employment and criminal history. It also helps them uncover any blemished in the person’s character.

Background searching services are offered by a large number of online services and private investigators. When choosing the right company, select a company that has access to a wide network of information. Most screening companies retrieve data from a common pool of data stored with government agencies. They then dig further for criminal history, credit data, sexual offense registration information and other sensitive material. All the data collected on the potential employee is then compiled into a single background check report. The company you employ must be able to give you quick results, because you obviously don’t want to lose a good employee to your competition.

Whether you conduct an in-house background screening or employ the services of a background screening company, it is necessary to go through the claims of your potential employee with a fine-toothed comb. Companies that fail to perform their due diligence before hiring may have to close shop if the worst happens.