Exploring Background Check Companies

In the early days, when I first started running my own business, I assumed that all background checks were pretty much created equal. Each of the background check companies seemed to offer the same thing. I would pay them to perform a comprehensive criminal background check, finding any and all past involvement in illegal activities.

Just about every background check company also offered to check on the credit history of any potential employees. Although some may think that this is none of my business - as a business owner I beg to differ.

If someone won't pay their loans on time, will they come to work on time? Can someone prepare or serve food if they can't balance their checkbook?

Needless to say, I was pretty happy that the background check companies all offered such a thorough service. What I did not realize was that much of what they promised was a lie.

Here's what I discovered. Each background check company pays several other companies when they do searches. Background check companies don't work alone.

They require access to national credit reporting agencies, criminal databases – you name it. There are so many things going on behind the scenes, and I suspect that they are much more complicated than you can imagine.

This means that background check firms have a conflict of interest going on. The more sources that background check companies use or access, the more that they have to pay. So to realize a higher profit margin, a background check company needs to use as few sources as possible.

Unfortunately, the background check companies that do this cannot provide as thorough a service. They can only get some of the background check criminal records, but not others. And they will miss out on certain details of financial transactions.

Here's a little known fact - many of the background check companies have no access at all to foreign criminal records.

So if one of your employees was involved in a crime overseas, he's probably safe from background checks. These companies will not be able to safeguard you against international criminals. You could even have a terrorist working for you and not even know it.

The background check companies reason that this is just about doing business. To me, however, it's about more. We serve families in my restaurant, you see. There are little children who eat there. We would not want to put any of them in danger with an international criminal working behind the counter.

So no matter how careful you are in your hiring practices, don't put all of your trust in background check companies. Be sure to use your instincts and common sense too.