Annual Background Checks

Most companies screen employees for red flags in their background once, at the pre-hire stage. In the near future, the new normal may call for annual background checks, which can alert HR to potential risks from staff, reducing the prevalence of insider threats. Annual Background Checks provide employers with a valuable tool to best evaluate their risks and ensure they place their employees in the most appropriate positions.

Post-hire threats can be both external or external, meaning you may find information on an annual background check that could hint at the potential for an employee to damage to your company from within, or do damage to your company through misconduct while working in the field.  In either event, annual background checks will offer some insight into the potential risk your company may be facing.

What You Need to Know Before Conducting Annual Background Checks:

1. Be open about ongoing background checks.
   1. You should have a policy that clearly states how often you will be conducting background checks… every three or five years, or annually.
2. You need to have their signed authorization each time you conduct their background check
3. Make sure that any time you use an employee’s background information to make an employment decision — regardless of how you got the information — you must comply with federal laws that protect applicants and employees from discrimination.
4. Your company should also have a clear policy on what types of findings and records will be grounds for termination.
   1. Always provide the employee with the information before you decide to terminate them and allow them to let you know if they think the information is inaccurate or would like to provide additional facts.

Annual background checks can be tailored to your specific needs and the employee’s level of trust within the company.  For instance, a company accountant could have their credit report, bankruptcy records and civil litigation records searched annually to identify issues that may hint at the potential for them to possibly defraud your company out of money to solve their personal finance issues.  A driver for your company may only need their criminal history and their driving record checked annually to make sure they are still suited for the position they hold.

It is important to note that if you are looking to conduct annual screening on a specific employee, without screening others who hold the same position, you may be opening yourself up to a potential discrimination case.  If you are an employer looking for information about annual background checks and want to make sure you are operating within the law, we urge you to contact us today to discuss how we can help you with your specific needs and make sure you conduct these checks without breaking any employment laws.