At the Sharers Talk: Trust and Safety Meetup in San Francisco last Thursday, I had the privilege of listening to a panel of experts discuss security issues within the sharing economy. One of those panelists was Max Wesman, vice president of GoodHire, a pre-employment background reporting platform that supports small to medium sized businesses. In an article he posted on the company's blog, Max discusses why it’s important for marketplace owners to run background checks on their employees. Here’s what he has to say.

Why are background checks so crucial?

Unconventional Operations

The large-scale, social nature of the sharing economy is at once its biggest appeal and what makes it vulnerable. Individuals work out of their homes, use their cars or use other resources to provide goods and services. Background checks can:

• Provide employee qualifications
• Ensure employee safety
• Define standards by which a large amount of employees are managed

Here at Near Me, we work with entrepreneurs who may not have considered how safety measures are needed because of the unconventional dynamic of peer-to-peer marketplaces. Another reason why I’m excited to have come across GoodHire.

Trust

Human beings are social by nature, so the sharing economy is the perfect forum for individuals to connect while buying or providing products and services for each other. Trust is the cornerstone of this economy but it takes more than a feeling to ensure customers are safe. Background checks provides the assurance to customers that the companies they are working with are safe and trustworthy -- you can’t put a price on peace of mind.

Scale

Because the success of companies in the sharing economy relies on rapid growth of participants, it’s important to set a foundation for what may become a large enterprise. Having background checks sets a standard for who gets hired and can act as a model for partnering companies in other states.

Liability

Traditional companies are liable for the actions of their employees because of stringent government regulations. Likewise, companies such as Uber, Lyft or Sidecar need to check the backgrounds of their drivers to make sure that they are safe drivers and have clean driving records.

Competitive Advantage

As more and more entrepreneurs seek out peer-to-peer businesses, it’s becoming a booming industry. It’s true that the sharing economy runs on values like trust, community and reputation, but adding a safety feature like background checks will make these statements more tangible. Wesman says,

“For many businesses, the value proposition is built on friendly, reliable service. Background checking gives these statements real meaning by providing evidence that a business is following through on their promises.”

I’m so glad I attended the meetup and came across such knowledge. Here at Near Me we work with a lot of entrepreneurs who are thinking about these issues, so it’s nice to discover new resources. When you start a business, especially one driven on peers, it’s important to get the right people involved from the start. Background checks may seem like a stretch, but with the aforementioned points, it’s more of a given in today’s world.

Read source articel here