How To Run an Effective Employee Background Screening

Success in business depends on several factors, but the biggest one is the people you hire. Finding and hiring the right employees is a critical activity, and much can go wrong during the employment process. One tool that helps you find the right people is background screening. Background checks verify (or don’t verify) the information job candidates provide, letting you know whether they are who they say they are. To ensure a smooth and trouble-free process, here’s how to run an effective employee background screening.

The Necessity of Background Screening

We’ve touched on a few reasons why background screening is necessary, but it’s worth exploring further.

Risk Mitigation and Workplace Safety

Make no mistake—there’s a terrific risk in bringing a stranger into your place of business. Not knowing who they are puts a big question mark on their future with your company. Hiring someone with a violent or criminal history can put you, your employees, and your business at risk, and it can expose you to legal issues.

Likewise, hiring a person who is incompetent, inexperienced, or otherwise irresponsible may affect your brand if they fail to perform their duties or have poor or even harmful interactions with customers. Avoid such pitfalls through background screening focused on points that are relevant to your business.

Verifying Qualifications

Everybody lies, but some lies are bigger than others, and some people regularly weave falsehoods into their resumes. Background checks can confirm whether candidates went to the schools they claim to have attended, earned the licenses and credentials the job requires, worked at the places they claim to have worked, and so forth. Background screening lets you know you’re hiring employees who aren’t just qualified—they’re honest and forthright as well.

Types of Background Checks

Background checks come in many forms. Before hiring someone to perform employment verification services, decide exactly what you’re looking for in a person’s past. A comprehensive background check is possible, but it’s also expensive and, if the results have little to do with the position’s requirements, irrelevant. Below is a selection of possible background checks.

Criminal Background Checks

People who have paid their debt to society deserve a second chance, but some crimes automatically disqualify candidates because of state or federal law or industry standards. Criminal background checks are the most common type of screenings. They’ll turn up things like arrests, convictions, and prison time. This can be a good thing if the background check reveals the offense was minor and the candidate has since shown due diligence in repaying their debt to society. However, some crimes may suggest a candidate is less than trustworthy, reliable, or safe.

Employment Verification

Obviously, employment verification checks confirm a candidate’s job history, verifying or disproving claimed job titles, dates of employment, and reasons for leaving positions. Verify their experience, punctuality, and reliability through this check.

Education Verification

Education verification checks confirm degrees obtained, institutions attended, and graduation dates. It’s particularly important for positions requiring specific educational credentials and certifications.

Credit Checks

Credit checks are a good idea for positions involving finance and handling client’s personal records. Gaining insight into a candidate’s financial stability and responsibility may suggest whether they can handle money or if they might be tempted to mishandle your company’s finances and funds. For some roles, credit and criminal background checks are necessary combinations.

Reference Checks

Reference checks involve contacting a candidate’s previous employers, colleagues, or other references to speak for or against their personal character, work habits, ability to work with others, ethics, and more. Most likely, the person will provide references only from people who will speak well of them, so it’s worth making a few calls to others at their previous jobs, if possible.

Tips for Running an Effective Background Screening

Those are just a few different types of background checks. Now let’s learn how to use them effectively.

Develop a Background Screening Policy

If you don’t have a background screening policy in place, sit down with your HR and legal personnel and create one. Establish a clear background screening policy outlining the following:

• The specific types of checks to perform
• What qualifies a candidate for disqualification
• The process for handling discrepancies (those little omissions and gaps that sometimes turn up in a candidate’s resume)

Comply With Regulations Throughout

Throughout the process, keep the following laws and regulations in mind and work with a lawyer to ensure compliance. They could prevent the possibility of fines and other legal issues.

Fair Credit Reporting Act (FCRA)

The FCRA governs the use of consumer reports, including background checks. It requires employers to obtain written consent from candidates, provide pre-adverse action notices, and offer candidates the opportunity to dispute inaccurate information.

Equal Employment Opportunity Commission (EEOC)

The EEOC enforces federal laws that prohibit employment discrimination. Your background screening policy must not discriminate against candidates based on race, color, national origin, sexual orientation, religion, disability, age, and the like.

State and Local Laws

Your state or town may have laws on the books governing background checks. Be sure to familiarize yourself with them.

Obtain Consent

Candidates must give their written consent for a background check to be performed. This is a legal requirement and ensures an atmosphere of transparency and trust. The consent form must clearly explain the checks to be performed and how the information will be used.

Pick the Right Background Check Company

There are no shortcuts or cheap alternatives in background screening. A reputable company is worth every penny. Online companies that promise comprehensive background checks for an unbelievably small fee are not to be trusted. Find a company with a strong track record, industry certification, and positive client reviews. Ensure that they comply with the Fair Credit Reporting Act (FCRA) and other relevant regulations. Otherwise, you’re just wasting time and money.

Conduct the Checks/Review the Results

Once you’ve obtained consent and selected a provider, it’s time to get to work. Follow the outlined procedures in your screening policy and ensure all checks are completed thoroughly and accurately. Ask your provider about red flags to watch for, what they might mean, and how to handle them during the decision-making process. Review and interpret the results. When you encounter a discrepancy, take time to decide whether it’s a disqualification or if it’s worth pursuing an explanation from the candidate.

Communicate With the Candidate

Get in touch with the candidate and inform them of your decision. If you choose to hire them, congratulations on finding the perfect person! If not, communicate your decision by initiating the adverse action under the Fair Credit Reporting Act. If you have questions inquire with the background check company about the next steps. Keep detailed records of the entire process, including consent forms, correspondence, reports, and similar documentation.

That’s how to run an effective employee background screening. As you go along, keep in mind the best practices of being consistent, fair, and informed. Above all, focus on experience over anything else. The best candidate may be the one you least expect!