Background Check And Contractor Basics-- Do You Need To Screen?

Posted on May 7, 2020 by Bailey Crumpton. Tagged: Resources for Entrepreneurs, For Clients

Economic uncertainty coupled with a continued desire for growth can lead businesses to more strongly consider or invest in contractor work. A recent upswing in contract work reflects the need for engaging talented people, while acknowledging the benefits of more flexible or shorter term agreements.  While contractors can often hit the ground running sooner, running a background check can still be an important part of that process.

This article will focus on background check basics, looking through the lens of the potential for contract work to play heavily into our economic recovery from coronavirus shutdowns.

Understanding Contractors Versus Full-Time Employees

Weighing the pros and cons of hiring contractors or a contingent workforce doesn't have to be complicated. Take a look at our deep dive into the differences between 1099 Contract and W2 employees to further identify what works best for your business. Background checks can be a part of the process for hiring both contract and full time employees.

However, research from the U.S. Government Accountability Office identified that contract work rose significantly after recession periods in the US, post 2001 and 2008 respectively. As of 2017, nearly 57.3 million Americans, 36% of the nation’s workforce, are now engaging in some level of freelancing, many by choice (63%) according to the Freelancers Union. This data indicates that many American workers and employers are interested in or have already engaged in "flexible" agreements, especially after recession periods. If you are leaning towards contract, how can you ensure hiring a contractor is just as effective and secure as a full-time employee?

How Relying On A Recruiting Partner Helps

As a hiring partner for our clients, our ability to issue a background check and support the hiring process can save hours of time in weeding through a tsunami of applicants and verifying their experience. We've come to understand the different reasons companies issue checks and also why they decide it's not necessary.

We encourage companies to consider a range of factors when looking at the purpose and process of this popular screening. In many cases, running a background check provides extra verification when considering hiring a new individual. Its report is designed to reflect the integrity or honesty of an individual who is about to be hired.

Breaking Down The Background Check Process

Industries That Screen 

Nearly every corporate or publicly-owned company performs some background checks for their employees during the onboarding process. Also, industries like fintech and healthcare companies almost always perform background checks to ensure that potential employees are free from criminal history. Their employees are handling sensitive information and patient care, hence the extra caution when screening new candidates. 

With that said, some software startups choose to skip the background check. Their client or service may not handle sensitive information, and they need to get up and running fast. Sometimes companies rely on references and work history alone

Ultimately, some of our clients are required to or prefer to; others do not prioritize background checks. Really, it's up to your company's specific needs.

The Impact On The Hiring Process

How A Background Check Helps

Performing a background check helps provide a sense of security through verifying a candidate's legal and work history. It confirms that you're making the right decision, providing that extra level of confidence, which can be all it takes to ease that hiring process anxiety. 

In addition, it's a form of protection and can position your company as reliable and trustworthy. Sometimes, investors even require that the company they're funding perform background checks on all incoming employees. It's a way to safeguard their investment. 

How A Background Check Can Hinder

A background check can potentially slow down or halt the overall hiring process. Running a background screening can take anywhere from a few days to a month depending on what a company screens for. For example, a full financial background check is a more extensive process. As a result, even if necessary, companies that screen could lose out on good candidates who have other offers and don't want to wait.

Also, candidates may have the right skill set and great work experience, but they have a minor criminal offense. An investor's strict requirements could narrow the field and cause companies to lose out on hiring from a broader spectrum candidates. 

Determining If A Background Check Is Right For Your Hiring Process

Background checks are an important step for many companies. It provides extra protection when bringing new people on board.  However, the process isn't right for every company.  Consider the factors that go into running a background check and how significant that check is to your company's values or industry.

Sit down with your team and determine if it's value within your hiring process. You can also work with a recruiting partner and get expert advice based on real experiences

A background check can be a crucial step in your hiring process. Once you determine if you're adding it as a requirement, be open and honest during the interview phase or issues that may arise.

Here at BWBacon Group, we know and live what you are experiencing as an employer or job seeker in Denver, Boulder, Dallas, San Francisco, New York City or any of the other cities we work in. We believe great recruiting starts and ends with understanding people.

If you have any questions about living, working or playing any of the areas we serve, please contact us. We are happy to help. Seize the day, every day, that’s what we say!