Posted by Ryan Howard on Fri, Feb 19, 2016
Since the recent recession, entrepreneurial activity in the United States continues to grow due to layoffs and restructuring of prominent corporations. 2015 was the year that startup activity rose for the first time in five years, with the largest year-over-year increase from the previous twenty years. In fact, trends show that 2 out of every 10 new entrepreneurs came from being previously unemployed.1 With startup growth dependent on hiring the right person for the job, a solid foundation of hiring processes is more important than ever.
Here's why startups need a background screening company...
Hiring for Startups
According to Inc magazine's top three hiring trends for 2016, the workforce is getting older. In fact, many older Americans were trained for certain job types or positions that may no longer be viable. With a smaller, trainable and entry-level talent pool to choose from, entrepreneurs need to hire candidates that are adaptable to the ever-changing conditions of a startup business.
A new business also means hiring a candidate that is willing to "wear many hats". This includes being willing to take on tasks that are new or uncomfortable. With much of the talent pool carrying college degrees that they may or may not be using, a startup needs to be transparent about its needs when recruiting the perfect candidate. Strategic hiring for an open-minded and passionate person with an entrepreneurial spirit will offer more benefits than hiring for a particular position.
Growing a Startup Business
One of the biggest hiring challenges for startup is timing. When is the perfect time to hire that perfect candidate? To grow a new business, you need a good solid product or service and a good market fit. If you don't have the team around you to help create those things, your business may fail. However, if there isn't a healthy cash flow to hire those people, many entrepreneurs can become overwhelmed doing everything themselves.
A startup may need to outsource tasks such as human resources, marketing, accounting and others. Outsourcing, while still a hotly debated topic, may relieve some of the pressure on ownership so that the focus can remain on the core business. When considering outsourcing these tasks, it is imperative that the startups work with companies that can grow and scale with the growth of the business.
Background checks are another process that may get overlooked during rushed hiring for startups. Nonprofits and other new businesses tend to skip background checks due to cost. An effective hiring process, including applicable background checks, doesn't have to cost a fortune. In fact, it shouldn't.
Entrepreneurs are investing their time, money, blood, sweat and tears to build out a business. Protecting something that is your life's work should be a top priority and the candidates hired should be top quality too. FCRA class action suits and negligent hiring claims can take down even the largest corporations. Starting a new business is the perfect opportunity to establish a foundation of smart and efficient hiring. To see how ordering a background check for new hires can work, watch a demo here.
Investing in Company Growth
At VeriFirst, our FCRA certified staff works with startups to guide an effective hiring process to invest in your company growth. Our platform lends itself to scale with your company, plus our compliance tools are perfect for a company that might not have an established HR department yet. Utilizing our cost-effective platform demonstrates planned growth, impressing the startup’s current (and potential) investors that they’re serious about protecting the company’s assets.