The Top 5 Risks in Overlooking Background Checks

March 21 2024
4 min read

From small startups to multinational corporations, every organization faces inherent risks when bringing new employees onboard. Employers are tasked with the responsibility of not only identifying the most qualified candidates but also ensuring that they align with the organization’s values. With increasing concerns around the country about workplace safety, legal compliance, and reputational damage, background checks have proven to be an effective tool for mitigating risks and making more informed hiring decisions.

While some employers look the other way, the ramifications of overlooking comprehensive vetting procedures like background checks can have serious consequences, including jeopardizing the organization’s reputation, financial stability, and most importantly, the safety and wellbeing of its workforce. These repercussions tend to create a ripple effect throughout the organization and even the economy. According to the Professional Background Screening Association (“PBSA”), “Workplace violence, fraud, embezzlement, and theft are a multi-billion dollar drain on our economy, a cost which can be mitigated."[1]

Background checks bogging you down? Orange Tree is here to help. Speak with our team and learn how to accelerate your hiring process.

Top Five Implications of not Performing Background Checks

Hiring Unqualified or Unsuitable Candidates

Without background checks, employers risk entrusting roles to individuals who are ill-equipped to fulfill the duties of those positions. From lacking essential qualifications to having different values, this misalignment between the individual and the role can trigger a domino effect, including diminished confidence, reduced productivity, increased turnover rates, and fractured organizational culture.

51% of companies screen to improve quality of hires[2]

Exposure to Legal and Financial Risks

While performing background checks means an increase in compliance measures overall, by overlooking them, organizations inadvertently open themselves to a minefield of other legal and financial liabilities. Employing individuals with a history of criminal behavior or other concerning behavioral issues can pave the way for costly negligent hiring lawsuits. This not only has the potential to drain resources, but also harm the organization’s reputation.

Compromised Workplace Safety

Neglecting background checks can be likened to leaving the door open and unattended to a business at all hours of the day and night. Essentially, anyone can come in and do whatever they want. A history of violence or substance abuse may indicate they cannot be fully trusted immediately or that they pose tangible risks to workplace safety. In these situations, the threat of accidents, injuries, and potentially catastrophic incidents may be elevated. It’s better for employers to have this information so they know how far they can leave that door open.

77% of US companies screen to protect employees and customers[3]

Damage to Reputation and Brand

Every business is made up of the people in it. As an extension, each hire shapes the collective identity and perception of that business. Recruiting individuals with problematic backgrounds not only can damage the organization’s reputation but also eventually diminish its brand equity. Negative headlines (no matter how large or small) stemming from employee-related incidents have the likelihood of eroding customer trust and deterring investors. “The first question posed by media in any workplace violence situation is whether there was a background check — the ‘wrong’ answer can devastate the very foundation of a trusted organization.”[1]

41% of companies say protecting reputation very important[4]

Loss of Trust and Employee Morale

At the heart of every thriving organization lies a foundation of trust between management and employees. Failing to consistently conduct background checks erodes this trust over time, casting doubt on leadership’s commitment to safeguarding the welfare of its workforce. Morale among employees decreases, resulting in higher turnover rates and creating a snowball effect of barriers to attracting and retaining top-tier talent going forward.


It's crucial to conduct thorough background checks not just to fill roles, but also to create a safe, productive, and reputable workplace. Risks are plentiful for employers who don't screen new hires, and one bad experience can damage a business long after an employee leaves. Background screening has many benefits, such as boosting employee satisfaction, shaping company culture, and enhancing community and economic standing. By making background checks a priority, organizations protect themselves and set the stage for long-term growth and success. In today's job market, background checks are a vital investment in an organization's future. Learn how Orange Tree can help your business thrive, speak with our team today!


Why Orange Tree
Orange Tree Employment Screening helps companies win their race to fill open positions by providing fast and easy background check and drug testing services. We are committed to helping companies create safer workplaces, mitigate financial risk, and avoid legal exposure. We forge long-term partnerships with our clients by offering a full range of technology-led screening solutions predicated on best practice and legally defensible screening programs. By partnering with Orange Tree, clients can be confident that they receive the highest level of service and support throughout their background screening journey.




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