The logistics industry is huge and continues to grow at a rapid pace. According to statistics, it is expected to grow at an impressive CAGR of 4.08% over the next five years.
It spells immense opportunities for existing players and aspiring entrepreneurs. But a lot goes into building a successful logistics company, right? You need hefty funding, top-quality equipment, and reliable employees you can trust to uphold your reputation.Â
Did you know that the transportation and warehousing sector employed 14.9 million people (or 10.2% of the American workforce) in 2021? It’s whopping, but the daunting part is that recruitment, training, and development are not the prime concerns for logistics businesses.Â
As a business owner, you must go the extra mile to bring the best people on board and ensure they handle their responsibilities well.
Background checks should be a priority when it comes to hiring people for your team. What is the significance of employee background checks in the logistics industry? Are you doing enough to ensure that all your drivers and workers have a clean record? Let us highlight these facts in detail to keep your business on the right track.
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Essential Components of Logistics Background ChecksÂ
Logistics companies need to have safety-sensitive drivers on board to safeguard company assets, client consignments, and business reputation. Employee verification is, therefore, all the more crucial for business owners.Â
It applies to every person joining your organization, regardless of roles and responsibilities. Here is a list of background verification tests you must include in your hiring process:
- Motor Vehicle Report (MVR) background checks
- DOT drug testing
- Criminal database verification
- Federal background checks
- Reference checks
- Prior employment verification
Providers like HealthStreet help logistics companies with end-to-end background checks, from criminal record verification to logistics pre-employment drug screening (including all the key parameters).Â
Business owners can explore standalone tests or opt for packages according to their needs and budgets. The website also provides advice on federal drug testing and other checks to ensure that you do not miss out on any testing requirements for potential employees.Â
The Benefits of Logistics Background Checks
Background verification is more than confirming the accuracy of a candidate’s personal and professional information. It is about digging deep to ensure you can trust them with your assets and reputation. Logistics companies should be extra cautious with their hiring practices, specifically background checks.Â
Here are the benefits you can gain with a proper process:
Worker Safety
Employees in the logistics industry often handle expensive vehicles, complex machinery, and dangerous equipment. They may even be exposed to toxic chemicals in transit and at warehouse locations. Background verification for each worker is essential to identify potential red flags such as criminal records, drug history, and falsified qualifications.Â
These factors may pose safety risks to workers, assets, and the company’s operations. But thorough screening can give you peace of mind regarding having the right people around.
Risk Mitigation
The transportation and logistics sector is inherently risky because accidents may occur on the road and in warehouses. Background verification can take you a long way with risk mitigation. Having qualified and competent workers on board means you need not worry about them performing their jobs effectively and safely.Â
Verifying the accuracy of their personal and professional information, checking their reputation from previous employers, and going through their criminal records are some measures you can rely on. Clean records mean a lower risk of legal and financial liabilities for your business in the long run.Â
Trust & Credibility
Including employee background checks in your hiring process can also enhance the trust and credibility of your company. Clients prefer to work with companies committed to safety and security, and employee checks are a part of the process. Once clients trust you for doing your bit, they are likely to stick around. Beyond client retention, you can expect to win contracts and strengthen your reputation.Â
You can even gain on the employer’s branding front as honest and dependable workers add value to the overall work culture of the business. It is a small step that takes your business ahead with trust and credibility in the market landscape. You can consider it a worthy investment for your business.
A Final Word
Undoubtedly, employee background checks should be on your recruitment checklist because it ensures getting reliable people on your team. The best way to implement them is by having an expert for the job. Look for a partner with relevant experience because your reputation and credibility depend on bringing reliable employees on board.
