The difference between hiring a good employee and a bad one is that it can make or break small companies. It is for this reason that a lot of businesses perform applicant screening.

Applicant screening is an important part of managing an organization. It includes a number of tests including psychological tests that are meant to evaluate the mental and behavioral faculties of the applicant.

Most times applicant screening includes background test, social security traces, criminal record checks and federal court checks. Many employers also include drug testing as part of the applicant screening process.

Analysts say that applicant screening is vital because it often makes the difference between making and breaking a company but it also essential for companies to prevent law suits.

As part of due diligence, businesses are required to conduct applicant screening on all prospective candidates. The applicant screening process is intended to flag prospective employees who have a poor credit history, criminal background and violent history. Research indicates that employers paid at least $ 3 million last year in wage compensation claims and more than $ 60,000 in worker violence compensation claims. Employers who did not conduct applicant screening as part of due diligence have also have also been the subject of large jury verdicts for negligent hiring.

Applicant screening can be done in-house or can be outsourced. Some of the larger companies have their human resource personnel conduct applicant screening. Most of the smaller companies outsource the work to companies specializing in applicant screening.

Because of the immense wealth of knowledge available, applicant screening can also be done instantaneously. Several national databases allow employers to run instant background checks and criminal history checks on prospective candidates as part of the applicant screening process. All that the employer requires is the candidate's social security number.

Some companies run social security traces as part of the applicant screening process. The advantage of this is that employers can find out if the candidate has been truthful with the biographical data and educational data provided in the resume. In addition, applicant screening also helps employers run a more comprehensive criminal background check on candidates.