Running background checks has become an increasingly important step in the hiring process for businesses of every size. According to CareerBuilder, more than 72% of companies conduct some form of background screening before making a final hiring decision. Why the emphasis? For one, background checks can uncover discrepancies in a candidate’s resume. In more serious situations, screenings might identify individuals who pose potential risks to the organization.
So what exactly is a background check, and how does it work? This article breaks down the fundamentals of background checks, what they reveal, and key considerations for employers.
What is a background check? A background check, or background screening, involves verifying a person’s history and credentials by gathering data from public and private sources. For employers, this is a way to confirm that candidates are accurately representing themselves. This is particularly important as surveys, such as one from Checkster, indicate that over 75% of job seekers exaggerate their experience or qualifications during the hiring process.
Beyond this, background checks can reveal potential concerns that wouldn’t arise during a standard interview. Sarah Watson, COO and psychologist at BPTLAB, underscores the value of these checks: “Background screenings help employers reduce hiring risks, make informed choices, and promote a safe work environment.”
How background checks are conducted Employers often partner with third-party vendors such as Accurate or HireRight to perform background screenings. These companies collect information from criminal records, employment histories, and other sources. Before initiating a check, however, employers must follow a few critical legal steps:
Obtain written consent The Federal Trade Commission requires that employers get written permission from candidates before running a background check. Candidates have the right to refuse, but doing so may affect their eligibility for the position.
Disclose how information will be used Employers must notify applicants in writing that the information obtained may influence hiring decisions. This disclosure must be a standalone document, separate from the job application.
Provide the results if action is taken If a hiring decision is impacted by the screening results, employers must provide the candidate with a copy of the report.
Be consistent Selective background screening can be discriminatory. The EEOC prohibits employers from running checks based on race, gender, age, religion, or other protected characteristics.
What information can background checks reveal? Background checks serve multiple purposes, offering insights into a candidate’s qualifications and past behavior. Common areas of focus include:
Criminal history Most background checks involve reviewing criminal records to identify past convictions or charges. This is especially critical for roles involving vulnerable populations or sensitive information.
Employment verification Employers often verify job titles, employment dates, and duties. They may also contact references or former supervisors to assess the candidate’s reliability and work ethic.
Education confirmation Verification of academic credentials is key for roles requiring specific qualifications. Employers may check degrees, certifications, and GPAs.
Credit reports In roles involving financial responsibilities, employers may review a candidate’s credit history—with written consent. This can reveal bankruptcies, delinquencies, or financial red flags.
Driving records For positions that involve driving, an applicant’s driving history is usually examined. Some employers may also review social media profiles for any behavior that might reflect poorly on the company.
After collecting the relevant information, the background check provider compiles a report that helps the employer make an informed hiring decision.
Why background checks matter According to Sarah Watson, “Screenings help mitigate the risk of hiring candidates who may not be honest or qualified, and promote workplace safety.”
Key takeaways:
- Ensuring accuracy in a candidate’s resume reduces costly hiring mistakes.
- Protecting your company from negligent hiring can prevent legal liabilities.
- A thorough screening process contributes to a safe and trustworthy work culture.
Additionally, well-conducted background checks can lead to better employee retention. By understanding a candidate’s past behavior and work style, you can hire people who are more likely to succeed in your organization.
Background checks are more than a compliance task; they are a valuable part of building a trustworthy, qualified team. Employers can feel confident in their decisions, and employees benefit from a safer, more transparent workplace.
As your business grows, background checks become an essential tool in building a strong and dependable workforce. And with services like Beyond, you can streamline the screening process, ensuring a smooth experience for both your team and your candidates.
