An employee background check is more than a hiring formality—it’s a frontline defence against workplace theft.
When my friend Alan’s small business lost $15,000 in inventory over three months, he assumed it was a supply chain issue.
Turns out, a seasonal hire with a clean-looking résumé had a history of theft at previous jobs.
Alan never ran a background check.
He didn’t want to “offend” the candidate or delay onboarding.
That decision cost him more than just money—it broke team trust and damaged client relationships.
That’s when it clicked for me.
Running an employee background check isn’t about being suspicious—it’s about protecting your team, culture, and business.
Why Workplace Theft Happens More Than You Think
Internal theft isn’t rare.
According to the U.S. Chamber of Commerce, 75% of employees have stolen from their employer at least once.
That’s not just office supplies—it’s financial fraud, inventory mismanagement, and even data leaks.
And here’s the kicker:
It’s usually not the person you’d expect.
It’s someone trusted, someone with access, and often, someone whose past red flags were overlooked during the hiring process.
The Power of Pre-Employment Screening
A thorough pre-employment screening can uncover:
- Criminal history
- Employment verification
- Financial red flags (especially for roles handling money)
- Previous workplace conduct
This step alone can drastically reduce the chance of onboarding someone who poses a risk.
I once worked with a retail startup that made background checks a standard part of hiring.
After implementing checks, they saw a 60% drop in inventory loss within a single quarter.
Why? Because candidates with histories of workplace theft either didn’t apply or were filtered out early.
When a Background Check Could’ve Saved the Day
A friend of mine in the hospitality industry hired a night auditor without screening him.
He seemed professional—great interview, clean résumé.
Three weeks in, the books weren’t adding up.
By the time they caught on, he’d skimmed over $8,000 in cash transactions.
They later learned he’d been terminated from a previous job for the same thing.
A simple verification call or background search would’ve prevented this.
Balancing Trust and Safety
Some employers fear that requesting a background check might feel invasive or unwelcoming.
But transparency goes both ways.
Framing it as a step that protects everyone—including the applicant—helps build mutual trust.
It also reinforces the seriousness and professionalism of the workplace.
A hiring manager I spoke with always explains the purpose of the check upfront:
“To keep our workplace safe and fair for everyone.”
Most candidates appreciate the clarity, and strong applicants never object.
Red Flags You Shouldn’t Ignore
Not every red flag means disqualification.
But some deserve a second look:
- Unexplained gaps in employment
- Multiple short-term roles in a row
- Vague or unverifiable job titles
- Discrepancies in dates or responsibilities
In one real case, a candidate applied for a warehouse supervisor role.
His résumé looked great, but the background check revealed two previous arrests for burglary—both at former workplaces.
The company passed on him.
A few weeks later, he was arrested again for theft at another job.
Beyond Criminal Records: Behavioural Patterns
Background checks aren’t just about crime.
They offer insight into behaviour patterns that could signal risk—dishonesty, carelessness, or lack of accountability.
Credit checks (where legal) can show financial distress, which sometimes correlates with higher theft risk in cash-handling roles.
One HR manager told me they once caught a candidate who lied about his college degree.
That alone didn’t seem like a big deal—until they realized he’d also faked job titles and references.
When integrity is compromised, everything else becomes a question mark.
Ongoing Screening Is Just as Crucial
A one-time check is great, but risk isn’t static.
Employee behaviour can change, especially under financial or personal pressure.
Some organisations run ongoing screening for sensitive roles—like finance, logistics, or IT security.
It might sound excessive, but it’s a growing trend in fraud-prone industries.
One logistics firm I consulted had an annual screening policy.
They discovered an employee had recently been charged with credit card fraud.
Because of their policy, they addressed the issue early, before any damage was done.
Making Screening Part of Your Culture
Background checks shouldn’t feel like an obstacle course.
When normalized, they become part of a healthy hiring ecosystem.
Make it clear in job postings that all offers are contingent on successful screening.
Build the process into your HR timeline.
And work with services that deliver fast, accurate results—without delaying onboarding.
Final Thoughts
Workplace theft can be devastating, especially for small businesses.
And while no system is perfect, a solid background screening policy significantly reduces the risk.
It’s about more than avoiding financial loss.
It’s about protecting your people, your culture, and your peace of mind.
Taking that step could be the smartest investment you make this hiring season.