What Employers Need To Know About Background Checks
Hiring the right employees is a critical process that greatly impacts the success of any organization. But how can you ensure that the person you are about to hire is the right fit for your company?
Conducting employee background checks is a crucial step in the hiring process that can provide valuable information about a candidate’s past behaviour and help you make informed hiring decisions. Whether you are a small business owner or an HR professional, it’s important to know how to conduct thorough and effective background checks that will help you hire the best candidate for your organization. In this blog post, we will look at the world of background checks, exploring what they are, their importance, and what’s included in a background check.
What is a Background Check?
A background check is a process used by employers to verify a potential employee's history and credentials before hiring them. This process is conducted during the hiring process to verify the accuracy of the information provided by the candidate and to uncover any potential red flags that may make them unsuitable for a particular job or position.
Background checks can vary depending on the job and the employer’s needs. However, the purpose of the background check is to ensure that the candidate is trustworthy, reliable, and a good fit for the organization. They can be conducted by employers themselves or by third-party agencies that specialize in background screening.
Why Background Checks Matter?
When hiring new employees for strategic roles hiring, it’s essential to ensure that they align with your organization’s values, standards, and goals. Here’s why they matter:
Verifying Credentials: Ensuring that candidates have the qualifications and experience they claim.
Reduces Risks: Identify any criminal records, financial issues or other red flags that could pose a risk to the organization, its employees, or its reputation.
Protects Workplace Safety: Safeguarding your organization and employees from potential harm.
Legal Compliance: In some industries, background checks are necessary to comply with legal and regulatory requirements. Failure to conduct proper checks can lead to penalties or legal issues.
Improves Hiring Quality: By confirming that a candidate is qualified and suitable for the role, background checks help in making more informed and effective hiring decisions.
What Should a Background Check Include?
Criminal History
Thorough criminal history checks are one of the most critical steps in the background screening process. This check uncovers past criminal convictions, arrests, and pending charges that may be a liability down the road. It is only carried out to see if the candidate poses a threat to the office’s environment or the staff.
Employment History
Verifying employment history involves checking the applicant’s past jobs and how long they worked at each one. This step confirms that the resume details are correct and that the candidate has the necessary experience for a job opening. Employment history usually covers the following information:
- Job title
- Company name
- Employment duration
- Name and contact info of previous supervisors
Employment history has valuable insights for hiring managers. It helps assess candidates' work experience and skills, determining if they’re a good fit for the role. Additionally, employment history can also reveal the reasons for leaving past jobs and offer a comprehensive picture of the candidate’s professional journey.
Education Verification
Education verification is essential for certain managerial or specialized roles as these positions require specific qualifications, certifications, or training. Therefore, this screening should focus on confirming that the candidate holds the degree, diplomas, or certifications listed on their resumes because falsified credentials are not uncommon. According to a recent survey by ResumeLab, 70% of applicants falsify details when applying for jobs. Whenever possible, verify educational credentials directly with the issuing institution. It is primarily used to deny or confirm the candidate’s application for the post.
Credit History
While not always necessary, a credit history check helps assess the financial stability and reliability of candidates. A solid financial history often suggests that a person manages their obligations well, which can translate into trustworthy behavior in the workplace. This is especially important for roles that involve managing finances or handling sensitive financial data, such as accounting or banking positions. A positive financial track record can also reduce concerns about potential theft or financial misconduct risks.
However, it is important to do these checks judiciously to ensure compliance with local laws and regulations. Some jurisdictions restrict when and how credit information can be used in hiring decisions.
Reference Checks
Whether an entry-level sales assistant or a manager, reference checks are indispensable regardless of the position level. Speaking with previous supervisors, colleagues, or direct reports offers valuable context beyond what is presented in a resume or during an interview.
When conducting reference checks, focus on gathering detailed feedback on the candidate’s work ethic, interpersonal skills, and attitude. It helps to have a comprehensive policy in place for reference checks that include a standardised list of questions. This ensures consistency in your evaluation process and reduces the risk of bias.
Social Media Check
During a social media background check, certain red flags may suggest a candidate might not be a good fit for the company. These may not directly impact job performance, but can still be off-putting to employers. Examples include:
- Unlawful Activity
- Racist or sexist comments
- Violent or aggressive behavior
- Sexually explicit material
- Confidential information
A social media background check can reveal if a candidate fits the company culture, even without major red flags. It can also reveal whether the candidate can adhere to the organization’s values, work well with the team, and contribute positively to the work environment. A good cultural fit often leads to higher job satisfaction, better performance, and lower turnover.
Drug Testing
Industries like construction, transportation and manufacturing require alcohol and driving test records. These types of test records conclude if the person is suitable for the job or not.
By integrating drug testing earlier, employers can ensure only qualified, drug-free individuals are hired. Be sure to establish a clear drug testing policy that outlines when tests will be conducted, the substances to be tested for, and the procedures to follow in case of a positive result. This policy should be clearly communicated to all candidates during the hiring process to set proper expectations.
Identity Verification
Ensuring a candidate’s identity is one of the most fundamental steps in the hiring process. It confirms that the person applying for the job is indeed who they say they are, protecting against hiring fraud, identity theft, and employment scams.
Always verify government-issued identification, such as a driving license or passport. Match the information on the candidate’s resume, application, and other submitted documents against the verified identity information. Any discrepancies, such as different names, birthdates, or addresses, should raise concerns.
How to Conduct an Employee Background Check?
Determine what to check: Identify the specific areas you need to investigate based on the job requirements. This includes criminal records, employment history, education, credit history, and professional licenses.
Obtain consent: Before conducting a background check, employers are required to obtain the consent of the individual for these checks. This ensures a fair and transparent process where the candidate is aware of and agrees to the extent of the investigation into their history.
Conduct investigation: Engage a reputable background check service provider to gather and verify the necessary information.
Review report: carefully review the background check report for any red flags or discrepancies. Ensure that the findings are relevant to the job role and consider any potential biases.
Make an informed decision: Use the information from the background check to make a well-informed hiring decision. Ensure that the decision is fair, consistent, and compliant with legal regulations.
Final Words
Conducting background checks is an essential part of the hiring process. These checks provide valuable information about a candidate’s professional history, qualifications, and character, helping businesses ensure a safe and productive work environment. By conducting thorough and reliable background checks, businesses can build a more skilled and trustworthy workforce, improve retention rates, and reduce the risk of theft or other misconduct.