Playing With Strangers – The Risks Of Not Doing Background Checks

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In this fast paced, chaotic world that we live in, personal interactions are not bound by conventions that they once were. Whilst only two decades ago, you could always put a face to the name of those you interacted with, but today 50%  of those you communicate with is purely through electronic means and the number is rising. Quality relationships diminish as we strive for efficiency and with it is the risk of trusting those you don’t know well enough. Whether it be a potential lover or a job candidate, the risk associated with not doing thorough background checks australia on individuals can have personal, professional and monetary implications.

Employers are often given the difficult task of making a judgement on a potential candidate simply through the interview process that may include a brief criminal check. This process opens up the employer to the risk of hiring someone that may not be as they presented on paper. A study by the Society for Human Resources Management (SHRM) found that the impact of a poor hiring choicescould cost up to five times the annual salary(1)of the said employee.  Aside from the obvious financial costs, there is also a potential for disruptions to the work environment and dissatisfied employees that may have to take on added workload to assist the bad hire. This can have a lasting affect on the culture and moral amongst staff that is often difficult to reverse. By conducting a background check australia on those potential candidates, the employer may lessen the risk to their business and be able to make a sound judgement when bringing on-board someone they potentially have to trust with commercially sensitive material and funds.


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In the same vein as having a bad hire, going into business with someone without doing your due diligence on them can have devastating financial impacts. New business partnerships are a minefield of conflicting ideas and interest let alone the chance that one of the partners may have ulterior motives. Doing backgrounds checks earlier can save an individual from issues later down the track and if they don’t find anything, the peace of mind can relieve some of the stress of doing business.

Whilst background checks are often for commercial purposes, their use in private circumstances is just as prevalent. Research has shown that people put surprisingly little energy into finding out exactly who they are planning to spend the rest of their lives with. As with any commercial dealings, the personal and financial costs that can arise from not knowing someoneis significant. The divorce rates are enough to speak of the importance of doing your due diligence with someone who will potentially have access to your assets and funds. Whilst most will not fall for a Nigerian prince offering his fortune, many are duped by a pretty face or promises of forever.

Despite our growing network of colleagues and friends, our knowledge of these people seem to have diminished. More often than not, doing a background check on a person is a means to mitigate potential future losses.