Why Should Staffing Agencies Perform Background Checks

October 16 2020
5 min read

Many companies use staffing agencies to fill temporary roles, scale their workforce, and help with projects. In fact, according to the American Staffing Agency, 3 million temporary and contract employees work for America's staffing companies during an average week. Temporary workers can help employers stay on top of operational needs while reducing recruitment time and costs.

For staffing agencies, finding candidates who fit their clients required qualifications is essential to their success. Background checks are a simple yet effective say to verify that applicants do not pose a risk to customers. This step is particularly crucial for staffing agencies as they serve clients across all industries, ranging from manufacturing to healthcare. This industry is unique because its client's diverse requirements often define the contractor's screening needs.

Our previous blog post explained how background checks vary by industry. This post will discuss why background checks are beneficial for both your staffing agency and your clients. We will also expand on how the right background check partner is essential to meeting your goals.

Why should staffing agencies perform background checks?

A staffing agency's success relies on its ability to find and place qualified candidates quickly. Some clients require a completed background check before the employee starts. Others may leave the decision to the staffing agency. Regardless, running a background check to vet applicants helps determine the best candidate for the job and leads to more successful placements, resulting in happier clients.

Four reasons staffing agencies should conduct background checks:
  1. Prevent negligence in hiring and contract risk. If you place an employee who turns out to be a threat to the client or its employees, your firm could face a negligent hiring lawsuit. Conducting criminal background checks and drug tests to identify previous criminal behavior or substance abuse helps mitigate such risks.
  2. Build client loyalty and trust. Consistently providing your clients with qualified and vetted candidates will lead to future work and even referrals.
  3. Protect your reputation. The individuals you place are a direct representative of your company brand. Sending unqualified candidates, or those who turn out to be a liability could cause irreparable damage to your brand.
  4. Set yourself apart from the competition. It's not uncommon for clients to send job requisites to multiple staffing agencies. Performing background checks can set you apart from other firms by helping you make the best possible placements for your clients.

What kind of background checks should staffing agencies do?

The type of background check depends on your client's industry and the open position you are filling. To best serve your client's needs, you should consider conducting comprehensive background checks.

Performing a basic criminal check is ideal for all positions. However, if the job duties involve interaction with vulnerable persons such as children, the disabled, or the elderly, a more thorough background check is required. High-risk security industries such as banking and government may require an even in-depth background check to meet their guidelines and requirements.

An in-depth criminal background check will protect your company and clients from potentially dangerous or unqualified candidates. Placing a candidate with a criminal history or inadequate qualifications will pose an enormous threat to clients, employees, the public, and your business.

5 background checks Staffing Agencies should routinely perform:
  1. Criminal Background Check– Criminal checks ensure you are not placing an individual who could pose a risk to your employees, business, and customers.
  2. Employment Verification– Verifying an applicant's employment history will confirm their qualifications and provide any discrepancies.
  3. Education Verification– Some clients may require specific credentials or degrees. Confirming an applicant's education ensures they have the necessary experience and knowledge necessary for the position.
  4. Driving History – A driving check is critical if the employee operates company vehicles. This check will confirm that the candidate does not have any DUIs or traffic offenses that could pose a threat to your clients or their business.
  5. Drug Testing –If your client's position involves operating equipment or machinery, drug tests are crucial for workplace safety. Performing drug tests can help reduce drug abuse costs and keep your clients safe.

How can the right background screening partner help?

As a staffing agency, your business's success relies on your ability to find and place qualified candidates quickly. Working with an experienced, credentialed background screening partner will have a significant impact on your success.

Here are 4 ways an experienced background provider will help you succeed:
  1. Screen and Place Candidates Faster: Speed is crucial to the staffing industry. Every second, an open position goes unfilled means lost revenue for your business. The right background check partner will have the technology and process to clear your candidate to start - before your competitors can.
    • At Orange Tree, we provide easy to use technology to you and your candidates. Our mobile-friendly candidate portal is easy to use, and text enabled to reduce your time-to-fill by a full day. Allowing you to:
      • Place candidates faster.
      • Provide a positive candidate experience.
      • Hit your clients start dates.
  2. Tailored screening packages: Does a temporary manufacturing employee need the same background check as a contract software engineer? Probably not, which is why the right screening provider can tailor packages based on the position.
    • Orange Tree provides a full suite of screening services customizable to meet all your client's unique needs.
  3. Scalable and Configurable Process: Hiring is not static. When companies look to prepare for predictable and non-predictable events that drive hiring, they turn to staffing agencies. A background screening partner that can quickly configure and scale their process is guaranteed to meet your needs (especially during unpredictable times).
  4. Automated Compliance: Trying to manage and keep track of all the background screening compliance requirements is a full-time job on its own. The right provider will keep you fully compliant with all industry, federal, and local rules and regulations.

Ready to get started with criminal background checks?

Orange Tree can create custom screening solutions to meet your client's needs, regardless of the requirements. We offer a full range of advanced screening services, including criminal records, verifications, drug testing, international screening, and more. As your business grows and your needs evolve, we are here to help you be successful.

Our industry-leading technology adds automation to a complex screening process while our U.S. based support offers personalized service. Our team of experts engages with you to understand your business needs and provide the help you need to meet your hiring goals.


Want to learn more about how our team can be of service to your organization?

Schedule a call today.

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