“Don’t wait until someone’s hand is caught in the cookie jar.”

The Real Reason to Check Every Employee

Meet Carmen, who thought she'd struck gold by purchasing a business with a small but steady team of office employees. All was well until one day, a manager quit, and Carmen needed to fill the role quickly. Enter the new hire—a seemingly capable woman who aced the interview and slid into the manager’s chair without a hitch. A month later, however, Carmen’s good vibes vanished when one employee reported some missing money. Suspicious? You bet.

Carmen, channeling her inner detective, reviewed the security footage and caught the new manager red-handed—literally. A quick background check on the sheriff’s website revealed that this employee had a criminal record, and Carmen’s trust went down the drain faster than you can say “You’re fired.”

What to Watch Out For When Checking Employees:

1. Work Permit Verification: Before you even think about handing out paychecks, make sure your new hire is legally allowed to work. Use E-Verify, an online system where you can confirm your employee’s eligibility with the U.S. government. It’s as easy as pie, and a lot less messy.

2. Criminal Background Check: Don't wait until someone’s hand is caught in the cookie jar. Run a background check—$20-$100 per check is a small price to pay for peace of mind. Or, for the budget-conscious, a quick look at the local sheriff’s “Arrests” page can reveal if your potential hire has sticky fingers.

3. Real-World Capacity: Yes, you can fire someone if they don’t perform, but wouldn’t it be better to avoid hiring a dud in the first place? A quick call to previous employers can shed light on any “unforgettable” behavior. While you’re at it, check if they can walk the walk as well as they talk the talk.

4. Your Broker’s Role: Don’t forget that your business broker can be an invaluable resource for navigating these waters. They’ve seen it all and can help you avoid hiring mistakes that could cost you big in the long run.

How to Avoid a Hiring Nightmare:

Start with a detailed application—get all the nitty-gritty info you need to run those crucial checks. Hiring is costly, so don’t cut corners. Make sure your new hire isn’t a thief, a fraud, or someone who terrifies everyone in the office. Once you’ve done your due diligence, you can hire with confidence, knowing you can show them the door anytime.

Hiring documents are serious business, so skip the free templates online. Hiring right could save you tens of thousands in the long run. And whatever you do, don’t delay in checking out the business and its employees. Need more guidance? Our articles on when to start your checks and who should conduct them have you covered.

Checklist:

• Verify work permits using E-Verify.

• Run criminal background checks before hiring.

• Consult previous employers about the candidate’s history.

• Engage a knowledgeable broker to avoid hiring pitfalls.

• Use detailed applications to gather necessary verification info.

• Hire carefully; don’t rely on free templates.

• Conduct timely checks on the business and its employees.

For more questions about buying a business call us +1 (561) 867-7697